Endowment Policy treated as capital

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    I have a claim where the couple have an endowment policy. It is a new claim.

    I am not sure how to treat it as I am aware that they could cash it in to meet expenses if required I believe. However, there is a possibility that it may be a fixed term investement and they can’t touch it yet!

    Can someone kind please clarify the way I can treat this and point me to the reg in the new rules as it is getting to lunchtime and on the last day before a bank holiday, I would love to get the claim assessed!

    Thank you in advance for your knowledge and advice!


    Remembering back many years to my Income Support training i don’t think it has any bearing on their claim as capital, any more than you’d be able to treat a Ferrari, or an original Van Gogh as capital.


    chris harvey

    Endowments usually have an element of life insurance included which makes them disregarded as capital. There is some caselaw that shows that even small elements of life insurance will render the asset disregarded, can’t recall the case name off the top of my head, but I remember it involved a building society investment bond that was held to be disregarded because of a small life insurance element attached to it.

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