DWP clarifies Universal Credit position on protection pay-outs

clock
"Advisers should check, at the point of claim, if their client is in an area where Universal Credit has gone live" - BRHG's Richard Walsh
Image:

"Advisers should check, at the point of claim, if their client is in an area where Universal Credit has gone live" - BRHG's Richard Walsh

The Department for Work and Pensions (DWP) has issued a clarification that pay-outs from term life, critical and terminal illness insurance policies will not impact means-testing for Universal Credit.

The DWP was responding to an inquiry by the Building Resilient Households Group (BRHG) on how payouts from these insurance policies would be treated for means-tested benefits for working age people The group said the key change was that Universal Credit legislation made it clear that, if a person used their capital to pay off or reduce a debt, including a mortgage, they would not be treated as depriving themselves of that capital. "Once the capital has been used to pay off a debt, therefore,...

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 Covid-19, regulation, diversity and mental health.
  • Receive breaking news stories straight to your inbox in the daily newsletter.
  • Exclusive access to our fortnightly Protection insight mini-podcast.
  • Be the first to hear about our CPD accredited events and awards programmes.

Join now

 

Already a Cover member?

Login

More on PMI

Helen Dick Senior Manager Claims & Underwriting Strategy @ Scottish Widows
PMI

Industry Voice: The value of the added value.

Scottish Widows' Helen Dick discusses why we should rethink about the benefits of protection

Scottish Widows
clock 25 November 2021 • 3 min read
Neville Koopowitz, CEO of Vitality
PMI

Neville Koopowitz: What we really mean by 'Shared Value' health insurance

‘Our core purpose is more relevant now than ever before’

Vitality
clock 19 November 2021 • 4 min read
Women In Protection & Health Awards 2022: Full list of nominees revealed

Women In Protection & Health Awards 2022: Full list of nominees revealed

Championing Diversity & Inclusion

COVER
clock 16 November 2021 • 7 min read