Income protection insurance and JSA

echoes008

Hi everyone, I am new here so great big hello to everyone.. I would really appreciate it if anyone can kindly answer my query please.

I have been paying for income protection insurance for last year and a half. I am now being made redundant after 10 years for service. Will be able to get Contribution based JSA even though I will be getting some income from my income protection insurance.

More importantly, 6 months down the line if I still dont have a job, will I be able to get Income based JSA, even though there will be some money coming in from income protection insurance?

Thanks..

TEDDYRUKSPIN

What type of income protection insurance do you have? Does it pay up to 12 months or 24 months? How long do you have to wait to collect it?

Just to say for the above:

(1) For the above insurance, you still have to sign on either way, contribution or income based. You need to prove that you are looking for work. You also need to ask for a certificate from the JSA staff. You need to send this back to the unemployment insurance company as proof.

(2) As for the above, they will calculate this as part of what is coming in.

(3) It is not the end of the world, as they need to calculate if you have any savings or assets for income based JSA. So if you are married and your partner is working full time, you are kind of stuffed. If you have savings above £8k, the amount of income based JSA is reduced.

It gives you a small idea of what is happening.

echoes008

TEDDYRUKSPIN wrote: »

What type of income protection insurance do you have? Does it pay up to 12 months or 24 months? How long do you have to wait to collect it?

Just to say for the above:

(1) For the above insurance, you still have to sign on either way, contribution or income based. You need to prove that you are looking for work. You also need to ask for a certificate from the JSA staff. You need to send this back to the unemployment insurance company as proof.

(2) As for the above, they will calculate this as part of what is coming in.

(3) It is not the end of the world, as they need to calculate if you have any savings or assets for income based JSA. So if you are married and your partner is working full time, you are kind of stuffed. If you have savings above £8k, the amount of income based JSA is reduced.

It gives you a small idea of what is happening.

Thanks..

My income protection insurance will pay me for 12 months or unless I find job another then they will stop sooner. Its not going to pay me my current salary, it would only pay about 65% of what I earn every month.

From your post it appears that if I get payment from income protection insurance then I won't be eligible for income based JSA 6 months down the line..

echoes008

echoes008 wrote: »

Thanks..

My income protection insurance will pay me for 12 months or unless I find job another then they will stop sooner. Its not going to pay me my current salary, it would only pay about 65% of what I earn every month.

From your post it appears that if I get payment from income protection insurance then I won't be eligible for income based JSA 6 months down the line..

Further to my earlier post. I spoke to insurance company yesterday. There is a clause in T&C of insurance, it says I need to send them the proof of JSA before they will treat me as unemployed.. This doesn't make sense and I may leave me in catch 22 situation. For example government may not pay me JSA as I have private unemployment insurance, and insurance company won't pay out as I might not get JSA. Can anyone shed any light on this subject pls.. Thanks.

Sixer

What you're missing is that you *claim* anyway. The insurance company wants to see that you have registered the claim. If you are eligible for contribution-based JSA, you will get that plus your insurance money. If you aren't, then you will claim income-based JSA, which will be adjusted (presumably to nil) because you will have income coming in from your insurance claim. You need to be registered as unemployed and looking for work to claim the insurance - but whether you're also entitled to a cash payment from DWP isn't relevant.

kazzah60

a word of caution - we had mortgage protection in place and because the money was paid directly to my husbands bank account rather than to the mortgage company the DWP counted it as income and as our mortgage was £880 per month and this was what we received, this made my husband ineligible for ANY payment from JSA
we argued that the money was to pay our mortgage- but they just said, because it was payable to us we could decide what to spend it on so therefore it was counted as income !
however sixer is correct- even if you get no money from JSA - you still have a claim and can claim under your mortgage protection plan - they don't worry if you are getting paid or not- just that you have signed on at Job Centre as being unemployed

echoes008

kazzah60 wrote: »

a word of caution - we had mortgage protection in place and because the money was paid directly to my husbands bank account rather than to the mortgage company the DWP counted it as income and as our mortgage was £880 per month and this was what we received, this made my husband ineligible for ANY payment from JSA
we argued that the money was to pay our mortgage- but they just said, because it was payable to us we could decide what to spend it on so therefore it was counted as income !
however sixer is correct- even if you get no money from JSA - you still have a claim and can claim under your mortgage protection plan - they don't worry if you are getting paid or not- just that you have signed on at Job Centre as being unemployed

Thank you and thanks also to Sixer. This seems totally unfair.. This is first time I am going to be unemployed in my adult life and I won't get a penny from dwp because I was savvy enough to pay for unemployment insurance.

However I know 3 blokes on my street who have never worked in their adult life continue to get jsa, housing benefit and all sorts. There is nothing wrong with any of them.. This is the lifestyle they chose to have.

What happens after my unemployment insurance money runs out 12 months down the line. Would they then treat me unemployed? I hope I will have a job before that.

Sixer

Echoes: if you have been working and paying NI for the required amount of time (which it sounds as though you have), you'll be entitled to £65 contribution-based JSA for 26 weeks, regardless of your insurance pay-out.

Hopefully you'll find another job within that time, so you won't have to worry about the rest of it.

kazzah60

Sixer wrote: »

Echoes: if you have been working and paying NI for the required amount of time (which it sounds as though you have), you'll be entitled to £65 contribution-based JSA for 26 weeks, regardless of your insurance pay-out.

Hopefully you'll find another job within that time, so you won't have to worry about the rest of it.

Sixer are your CERTAIN about that?
my husband had paid NI contributions unbroken from 1973 until 2004 and due to the mortgage protection insurance wasn't paid ANYTHING - neither contribution based nor income based - they said this was becuase we had more than the required £102 per week the Government said was the amount a couple needed to live on coming into the house- we appealed at the time- but were unsuccessful both in 2004 and again in 2006 when he was made redundant again.

Echoes - you should double check this information out.

echoes008

Sixer wrote: »

Echoes: if you have been working and paying NI for the required amount of time (which it sounds as though you have), you'll be entitled to £65 contribution-based JSA for 26 weeks, regardless of your insurance pay-out.

Hopefully you'll find another job within that time, so you won't have to worry about the rest of it.

That is what I thought.. Apparently you don't even have to provide your bank statements for Contribution based JSA. But I am also hearing conflicting information about the form it self.. Some people say they have to provide like 6 months of bank statements for even contribution based JSA.

echoes008

kazzah60 wrote: »

Sixer are your CERTAIN about that?
my husband had paid NI contributions unbroken from 1973 until 2004 and due to the mortgage protection insurance wasn't paid ANYTHING - neither contribution based nor income based - they said this was becuase we had more than the required £102 per week the Government said was the amount a couple needed to live on coming into the house- we appealed at the time- but were unsuccessful both in 2004 and again in 2006 when he was made redundant again.

Echoes - you should double check this information out.

Did you have to provide the bank details or information about savings when you filled in form for Contribution based JSA? I was under the impression that you can get contribution based JSA even if you are a millionaire as its not means tested.