Income protection v income support?

wovonb

My hubby is a self employed window cleaner. We have up to now had critical illness protection and mortgage protection. Revising mortgage protection and wondering about income protection led me to try and figure out what would actually happen if he could not work (falls off ladder, breaks legs etc) We can only cover 50-60% of gross taxable income which for us is not very much (about £375 per month) Looking at income support I see that works out as more but I am assuming we would lose it if we had it coming in privately. So is there any point? If I just cover the mortgage payments (£170 roughly pm) would that also go against us? is there any point? I am all for covering ourselves but looking at the figures I am not sure it adds up. I hope someone understands what I am getting at.
Thanks

miduck

Income support would only be available to carers or single parents with young children. He may be eligible for ESA if he becomes unwell. Do you not work?

With regard to income protection, this would affect your entitlement to means tested benefits. If you took out MPPI, this would only count towards any help with mortgage interest (for which you may be eligible after 13 weeks).

BigAunty

Income Support is a benefit payable to lone parents or as a top-up to other benefits like disability benefits.

Benefits are based on household income, not expenses - your mortgage payments are not directly relevant to the calculation but I expect any payments from insurance would be classed as income - do check though. How much do you earn or what benefits do you receive?

Someone who injures themselves can get benefits like Employment Support Allowance and/or Disability Living Allowance.

Certain income based benefits can lead to a home owner being paid their mortgage interest after around 13 weeks - do you have a joint mortgage or is it in his name. See the Direct Gov website for how all these benefits work and their strict qualifying criteria.

Personally I don't know what's worse - stingy state support or stingy private support...

Horseunderwater

Whatever else you do - make sure that being self employed is covered by that policy - insurers have many ways of taking your money and then not paying out when the worst happens. Check all the small print very carefully.
The critical bills you must pay are Council tax TV licence and rent or mortgage. Those are the ones which get you in trouble.
https://www.gov.uk/income-support/eligibility

wovonb

BigAunty wrote: »

Personally I don't know what's worse - stingy state support or stingy private support...

The problem is we are not allowed to cover more than 50-60% or earnings so it is not that I am being stingy just wondering if we would be spending money on something that we would not actually benefit from.

My earnings are negligible as I am home with kiddies 95% of time. If dh could not work we would have no earned income

princessdon

Waste of money you are insuring against benefits. (I take it benefits support the family now), you'd get more on benefits so what are you insuring against?

wovonb

So no point even having mortgage payment protection?

At the moment we get working tax credits and child tax credits.

princessdon

You'd get £111 pw on benefits so you are insuring for benefits which is pointless. Also check the policy as mine remove benefits from amount payable so you'd get nothing anyway if needed to claim. Mortgage maybe but not illness.

BigAunty

wovonb wrote: »

The problem is we are not allowed to cover more than 50-60% or earnings so it is not that I am being stingy just wondering if we would be spending money on something that we would not actually benefit from.

My earnings are negligible as I am home with kiddies 95% of time. If dh could not work we would have no earned income

by stingy private support, I meant the companies that sell the insurance policies who are notorious for having lots of exclusions and trying their best not to pay out, not you! Sorry if I didn't make this clear.

dave4545454

Horseunderwater wrote: »

Whatever else you do - make sure that being self employed is covered by that policy - insurers have many ways of taking your money and then not paying out when the worst happens. Check all the small print very carefully.
The critical bills you must pay are Council tax TV licence and rent or mortgage. Those are the ones which get you in trouble.
https://www.gov.uk/income-support/eligibility

I take it that you put in TV licence part as a joke? Of course a TV licence is not a critical bill, I've never bought one in my life and a lot are refusing to pay as the BBC are a disgraceful corrupt business.

Only the mortgage and council are critical bills.

BigAunty

dave4545454 wrote: »

I take it that you put in TV licence part as a joke? Of course a TV licence is not a critical bill, I've never bought one in my life and a lot are refusing to pay as the BBC are a disgraceful corrupt business.

Only the mortgage and council are critical bills.

Priority debts are ones that have serious consequences if they aren't paid, such as homelessness for non-payment of rent, and criminal convictions such as council tax and TV licences.

http://england.shelter.org.uk/get_advice/help_with_money/loans_debt_and_bankruptcy/priority_and_non-priority_debts