URGENT!!!! Please help me re income based JSA & mortgage payment protection insurance

mapleleaf1010

I've been claiming JSA because I was made redundant this year. I've also been receiving payments from my mortgage payment protection insurance (MPPI).

As I've been claiming benefits for over 6 months, the JSA is now income based. However, the Job Centre wants to reduce or stop my JSA because this MPPI counts as 'income'.

If my JSA stops, I'll stop receiving the MPPI payments as well and, as a result, I won't be able to pay my mortgage, bills, etc.

What should I do???? What are my rights??

Thank in advance.

tomjonesrules

Is your MPPI payment more than your mortgage? Is it directly related to your mortgage, or is it an income replacement policy?

Worst case scenario, if it does cancel out your JSA entitlement you will still be able to sign on for Credits and so still receive the MPPI payments.

mapleleaf1010

tomjonesrules wrote: »

Is your MPPI payment more than your mortgage? Is it directly related to your mortgage, or is it an income replacement policy?

Worst case scenario, if it does cancel out your JSA entitlement you will still be able to sign on for Credits and so still receive the MPPI payments.

I've been paying MPPI for many years (it is an income replacement policy I took when I bought my property). It covers the monthly mortgage payment and part of my bills. I took this insurance because I wanted to make sure I would be able to make mortgage repayments in case of redundancy.

I'm entitled to the MPPI payment provided that I receive JSA, and I have to send a copy of my bank statement to the insurers every month to prove it. That is, no JSA, no MPPI.

As I've never claimed benefits before, it's all a bit confusing for me. What am I entitled to if I sign on for credits?

tomjonesrules

How much do you receive from the MPPI, is it more than the JSA amount plus any SMI you would be eligible for?

If you are on a credits only claim you will not receive any payment. Usually the insurer asks the JCP to stamp a form for them to prove that you are signing. I'm not sure what would happen in your case - I would call them though, they must have come across this before.

BrettMorganxD

mapleleaf1010 wrote: »

I've been claiming JSA because I was made redundant this year. I've also been receiving payments from my mortgage payment protection insurance (MPPI).

As I've been claiming benefits for over 6 months, the JSA is now income based. However, the Job Centre wants to reduce or stop my JSA because this MPPI counts as 'income'.

If my JSA stops, I'll stop receiving the MPPI payments as well and, as a result, I won't be able to pay my mortgage, bills, etc.

What should I do???? What are my rights??

Thank in advance.

I can't really see how it can class as income, the money is soley to pay your mortgage.

Have you got any savings you can live off whilst you sort all this out?

tomjonesrules

BrettMorganxD wrote: »

I can't really see how it can class as income, the money is soley to pay your mortgage.

Have you got any savings you can live off whilst you sort all this out?

The OP has an income replacement policy, so whilst he is using it to pay his mortgage, he is also using it for other bills and could choose to spend it on whatever he wishes. Hence it is classed as income.

BrettMorganxD

tomjonesrules wrote: »

The OP has an income replacement policy, so whilst he is using it to pay his mortgage, he is also using it for other bills and could choose to spend it on whatever he wishes. Hence it is classed as income.

How much is income protection per month? roughly and how much of your old income does it replace (just rough figures I know it is a peice of string question).

Do you have to own your own home to have income protection or could even I get it for living with my parents

tomjonesrules

BrettMorganxD wrote: »

How much is income protection per month? roughly and how much of your old income does it replace (just rough figures I know it is a peice of string question).

Do you have to own your own home to have income protection or could even I get it for living with my parents

Income protection will normally cover up to 50% of your income, and the cost will depend on lots of factors. If you look at any of the insurance comparison sites you should be able to get an idea. Anyone can take it out, you don't need to be a home owner.

BrettMorganxD

tomjonesrules wrote: »

Income protection will normally cover up to 50% of your income, and the cost will depend on lots of factors. If you look at any of the insurance comparison sites you should be able to get an idea. Anyone can take it out, you don't need to be a home owner.

Or a renter? I currently live with my dad.

suelees1

The amount over and above your contractual mortgage payments will be classed as income

Adereterial

The Jobcentre should be able to provide you with fortnightly proof that you're continuing to sign on despite not being in receipt of income. Your insurer should accept this.