Advice re: Mortage lump sum payment

andrew71

For the past seven years we have had a monthly payment going into our account to cover our mortgage from the mortgage insurance we took out with it. This was because I was diagnosed with ME/Fibromyalgia.
The amount the insurance pays in doesn't pay the full amount but it does help towards the monthly mortage payment.
This morning we recieved a letter to say that the inusrance company would like to pay us a large one off lump sum which would then mean they would then stop paying any more monthly payments.
Our mortage is about £73K and they are offerinng just over half that amount.
If we took the lump sum we would then pay part of the mortage meaning our payments would drop considerably lower per month.

The problem we have (yes there is some) is that I claim ESA and DLA. I know DLA is not means tested but with ESA or JSA would this lump sum be classed as an income even if it went straight from our account to pay the mortgage off? Also would WTC and Child tax credit be penalised because of this?
I know that if we decided not to take the lump sum they would still pay the monthy figure but the lump sum does seem the better option.