Investment Bond - assessor refusing to disregard it for Pension Credit

Abbey1991

I am helping a friend who has an investment bond with Legal & General.

As it counts as a life assurance policy, the DWP assessor should not include it in the Pension Credit means test.

However the assessor has just incorrectly included it in a calculation.

How do we get them to disregard it as per the rules?

Thanks

calcotti

DWP guidance https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/795145/dmgch84.pdf

I think paragraph 84408 may be the relevant one. If you think it is, quote it to DWP.

Old_Lifer

Do not assume that all life policies are exempt from the means test.


I recall hearing a conversation regarding new benefits legislation (Income Support?) circa 1988 or 1989 during which a range of 'disregards' were discussed. Although a leaflet and even the Act may state that a life assurance policy is disregarded it seems that what is important is the 'definitions' section within the legislation. This sets out the meaning for the purposes of the legislation of a wide range of words and terms used in the legislation. It seemed that only regular premium policies were exempt fom the means test since it appears the definition of a life policy was that it should be secured 'by payment of premiums' (plural).


Since I had at that time only fairly recently left my job with a Life Office, this stuck in my memory. It also made perfect sense to me, as without the requirement for regular premiums anyone could avoid the means test by moving their money into single premium investment bonds which had a nominal amount of life cover.


I have no idea if the above is correct and have no idea what is the definition of a life assurance policy in current legislation. It may perhaps explain the assessor's decision.

xylophone

https://forums.moneysavingexpert.com/discussion/2507373/investment-bonds-re-pension-credit

Post 6 may be of interest.