Does loan protection reduce your benefit?

SuziQ

As in title. Am in the miserable process of contacting all my creditors re current circumstances. Had forgotten I had loan protection for unemployment for my £250 a month barclayloan. Was initially quite relived but then just wondered-will they take it straight off the income support and child tax credit I recieve? If so I am worse off than the reduced payment/payment holiday they were offering me.

[Deleted User]

I dont have a definitive answer regarding income support - it will not make any difference to your tax credits - but I would assume they wouldnt take it in to consideration as it is an insurance policy.
If your telly was to breakdown and you had home insurance which paid out so that you could get a new one they wouldn't take that in to consideration.

SuziQ

subsoniccoyote wrote: »

I dont have a definitive answer regarding income support - it will not make any difference to your tax credits - but I would assume they wouldnt take it in to consideration as it is an insurance policy.
If your telly was to breakdown and you had home insurance which paid out so that you could get a new one they wouldn't take that in to consideration.

Thanks,I asked as it says on the claim form that you have to tell the benefits people,and that it is the claimants responsbility,not the insurance company.

Natalie99

What will the loan protection actually be paying? Will they give you a cash sum?

Chrysalis

I had loan protection whilst I was on IB and HB, HB is means tested and I did declare it. They didnt reduce my benefit. In my case the loan was still taken out off my account every month but a week before my account was credited by the same amount from the insurance. This had to be shown to the HB staff as well as my insurance letter and loan agreement.