Income protection insurance and universal credit.

SRRAE

Can some one please help with advice or where I can ask.

Unfortunately I've been diagnosed with a terminal illness. I'm not at work, but still employed.  I get some payment from a work income protection policy.

My wife has finished work to be my full time carer.  We have applied for universal credit but they are classing my insurance as income.

I searched and found an article from 2019 (I this it is) which says insurance payment should not go against you if it's being used to pay debt including mortgage.

My insurance is being used to pay the mortgage and the credit card which has accumulated because of my diagnosis.

However my uc application is basically nothing because of this insurance

My question is, is this article I found correct? Am I better off just ending this policy?

elsien

Looking at this discussion, It appears as if it’s only discounted as income if it’s specifically designed to pay the mortgage rather than just money coming in and you happen to be using it for the mortgage. 

https://www.rightsnet.org.uk/forums/viewthread/20580/#96264

So I would suggest that you need to rummage out the specific terms of your policy In case there’s anything in there that’s of any help.

Weighty1

Sorry to hear about your situation.  I hope you're as comfortable as you can be.

Do you believe you would receive more in UC than the net amount you receive from your income protection plan?  If so then it's a no-brainer BUT you want to 100% make sure that that's the case otherwise you'd be worse off with no ability to go back to how you were.