Uc and cancer insurance payout

Haribo1

I have recently been diagnosed with cancer and am on uc. I took out an insurance type policy 20 years ago to cover me for any female cancers which covers breast cancer.
I have filled the forms in and am looking at a 9000 lump sum with a 500 a month payment for 12 months.

How will this affect my uc? I know I have to declare the 9000 as its over the 6000 limit but what is the the 500 a month seen as? Income?

Thanks for any replies 

kaMelo

I'm not entirely sure I remember correctly but I think if you paid the insurance premiums on the policy then any regular payments made to you as a result of a claim are classed as unearned income for UC purposes.

pmlindyloo

To confirm.

Taken from Advice for Decision Makers Universal Credit:

Certain insurance payments H5086  Unearned Income

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 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’). 1 UC Regs, reg 66(1)(h)

Would you be eligible for PIP?

Haribo1

So it is classed as income. Thanks for clearing that up.
Not sure about pip

kaMelo

Haribo1 said:

So it is classed as income. Thanks for clearing that up..

It's classed as unearned income, an important distinction as unearned income reduces UC pound for pound.

Edited to clarify.

HillStreetBlues

Haribo1 said:

Not sure about pip

PIP is treated as income so not deducted from UC.

EDITED  as previous post now unneeded.