Capital Investment bond

Cheechee

After doing an online benefits calculation the site suggests I can claim a council tax reduction.  I've put in a claim for Universal Credit and waiting to hear the decision next week.

On the council tax reduction form it asks about savings.

I'm very confused about a capital investment bond I have.

It is called a capital investment bond but has an element of life insurance and tells me that 101% would be paid on death.

After doing some research I know that life insurance policies are disregarded in means tests for universal credit (I have told UC about this account tho)..

The form asks if I have any
income bonds or capital bonds
any other savings or investments

Is my capital Investment bond included in either of these categories (even tho it has an element of life insurance)

TIA

Old_Lifer

We have been asked this question before.

As I understand it,   although leaflets and the Social Security Act  say that life policies are disregarded ,  the important thing is the definition of a life policy in the definitions section of the Legislation.   My understanding  is that when the Legislation was first  introduced  (1988?)  it required a policy to be secured by  'payment of premiums' ( i.e.regular premiums).    This made sense to me when I heard it at the time,   as  otherwise  someone with  a large amount of capital could  avoid the means test by putting their money into investment bonds with  only nominal life cover.      For instance,  a £10,000 bond would often have only £100 of life cover.   This appears to be the case with your  bond.

You should  declare it.    I have no idea how they will treat it.    Social Security is not my area of knowledge.

Malthusian

Insurance bonds (which is what this is) are disregarded in an assessment of eligibility for help with care costs (unless they were deliberately set up to avoid care fees).

They are not disregarded for Universal Credit for obvious reasons. I would declare it under "any other savings or investments" as I'm not entirely sure what is meant by "capital or income bonds" (it could mean several different types of investment) and it almost certainly makes no difference to the outcome.

dunstonh

They are not disregarded for Universal Credit for obvious reasons.

I thought they were still exempt. 

https://www.gov.uk/government/publications/advice-for-decision-making-staff-guide

Advice for DWP decision makers on Universal Credit, PIP and contribution-based JSA and ESA for people who are eligible for Universal Credit.

H2 Capital disregards

H2044 says:

Malthusian

I hadn't seen that guidance in my Googling so I defer to dunstonh.

Though it needs to be declared even if it is exempt.