Universal credit and redundancy insurance

tomato810

Does anyone know is it possible to claim universal credit if you have redundancy insurance?

calcotti

Any insurance payments will be taken into account in full unless linked to mortgage protection. Whether or not any UC is payable will depend on the maximum UC amount and the size of the insurance payments.
https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/932332/admh5.pdf

H5086 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 account.

Note: Following the introduction of the loans for mortgage interest regulations 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’).