Can you still claim benefits if you receive income insurance?

kevinlad

I'm thinking to take out an income protection insurance to cover my monthly mortgage payments. Because I have a fairly large mortgage payment to make per month, income protection insurance is ideal but it also means it can only cover that element of expenditure. I'm thinking if I'm ever in a situation of no income, I will still need help in paying other bills (such as council tax and service charge which costs more than £200). So could anyone still claim state benefits to cover all these living costs while receiving payouts from their insurance for paying off their mortgage?

ACG

Edited the whole post:

http://www.which.co.uk/money/insurance/reviews-ns/income-protection/state-benefits/
http://yourmoney.moneyadviceservice.org.uk/products/insurance/income_protection.html - Govt run website

It can have some affect on what you are entitled to. Like wise claiming benefits can also reduce the amount some insurers will pay out - you could be over insured.

One thing to think about though, is income protection will in most cases pay out if you are unable to do your own occupation, state benefits are if you can not do ANY occupations. Therefore it is usually easier to claim on Income Protection.

lisyloo

state benefits make you do tests (ie walking, reading etc) and will only pay out if you cant do ANY job.

I think this is referring to sickness related benefits.

If you got income protection it's unlikely you'd qualify for means tested benefits (like income support or whatever it's called now).

ACG

lisyloo wrote: »

I think this is referring to sickness related benefits.

If you got income protection it's unlikely you'd qualify for means tested benefits (like income support or whatever it's called now).

i rushed that post. I beat you to it :P

I changed the whole thing after i read it back.