Group income protection - HELP

dee4ash

Hi guys,
Basically I have been off my work long term sick for almost 10 years and I receive a monthly payment from my employer via group income protection insurance. This is paid to me directly via my employer and I recieve a wage slip monthly. The amount that is paid is 75% of my monthly salary minus ESA benefit. So I receive approximately 50% of my monthly top line. I pay tax and NI on my payments. The insurance company that supply's the Group Income Protection has sent my employer a letter offering me a settlement figure. They have stated that if I take it they will look to cease my employment. If I refuse it the monthly payments will continue as normal. 
I own my own home and I still have a large outstanding mortgage The lump sum would only cover 75% of my outstanding mortgage. 

My questions are:
1. If I take the lump sum payment, will it be taxable? And if so, at what rate? 
2. If I take the payment will I still be entitled to claim ESA? Or will I be moved onto universal credit? I will still be unfit for work and classed as sick. 
3. If I don't take it and continue to receive the monthly payments - can the insurance company kick me off my policy within the next few years- even if my circumstances don't change? 
If anyone could answer any or all of these questions it would be much appreciated. 

csgohan4

using an group income is risky as you rely on your employer being in business, if they go under, you will have lost this benefit. 

In regards if you should take the lump sum, can you afford not to have a regular income source until retirement age?

for future readers consider getting your own income protection on your terms, they are also generally tax free but you usually get around 60% of your gross income maximum.