DWP: Mortgage protection pay-outs excluded from means-testing

Adam Saville
clock • 3 min read

Income from insurance covering mortgage payments disregarded when entitlement to benefits assessed

Changes to State benefits covering mortgage payments during prolongued loss of income due to sickness will not lead to a mortgage protection pay-out being means-tested against benefit entitlement, a request for clarification from the Department for Work & Pensions (DWP) by the Building Resilient Households Group has revealed. The introduction of a Support for Mortgage Interest Loan (SMIL), which came into effect on 6 April 2018, increased the need for mortgage holders to consider protection in order to protect payments in the event of long-term sickness absence or due to other causes. Un...

To continue reading this article...

Join Cover

  • Unlimited access to real-time news, key trend analysis and industry insights.
  • Stay on top of the latest developments around health and wellbeing, diversity and inclusion and the cost of living crisis.
  • Receive breaking news stories straight to your inbox in the daily newsletter.
  • Members only access to monthly programme 'The COVER Review'
  • Be the first to hear about our CPD accredited events and awards programmes.

Join now

 

Already a Cover member?

Login

More on Individual Protection

Insurers encouraged to create policy that 'grows with the client'

Insurers encouraged to create policy that 'grows with the client'

"We do not have products that adapt to people"

Sahar Nazir
clock 07 December 2023 • 2 min read
FCA urges insurance manufacturers to ensure fair value

FCA urges insurance manufacturers to ensure fair value

Loaded premiums are a concern

Jaskeet Briah
clock 07 December 2023 • 4 min read
Louise Colley, head of retail protection at Zurich

How can the insurance industry get young people interested in protection?

Only 15% of young people have basic understanding of IP

Louise Colley
clock 05 December 2023 • 4 min read