UC and unemployment mortgage insurance

betterversionofyou

Hi

I have mortgage unemployment insurance that has a 60 day wait after end of notice period (so won't kick in until end of Sept). Will all of the monthly 'benefit' I receive be classed as income or will the amount that covers my mortgage payment be discounted?

Any input would be appreciated.

TELLIT01

Assuming it's paid direct to the mortgage provider it will be disregarded.

pmlindyloo

This is the relevant guidance:

Certain insurance payments
H5086 [See Memo ADM 9/18] Payments received under an insurance policy which is insuring against the risk of losing income due to
1 illness or
2 accident or
3 redundancy
are taken fully into account1.
1 UC Regs, reg 66(1)(h)
Note : Following the introduction of the loans for mortgage interest regulations1 on 6.4.18, Mortgage Payment Protection Insurance (MPPI) policies or any equivalent payments, are no longer taken into account in UC. DMs should ensure that when considering whether any income at H5086 should be taken into account that the policy does not contain an amount for mortgage protection (sometimes referred to as a ‘mixed income protection policy’).

Advice for decision makers. Universal Credit - unearned income.