Income Protection Plan

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    Dear all

    I have researched from past forums the ‘Income Protection Plans’ thread (12030) originally posted during Feb08, read all of the advice and in principle agree with the findings.

    However, I have a claimant who has just received £28k+ from a critical illness payment insurance, which he states is to pay his mortgage in full when he returns to work.

    Why aren’t I following the advice on the thread? I would if it were not for the fact that the claimant also has a separate mortgage payment protection plan, which is currently paying his mortgage off till he returns to work – his words not mine, as I thought they were only for a set period in time and not a ‘forever and a day’ policy, although I could be wrong.

    The claimant states that his bank has unofficially advised him not to pay his mortgage off until he returns to work. I assume, rightly or wrongly, because this would cease the payments from the mortgage payment protection plan and he would lose out.

    Am I being cynically in thinking that the claimant is insured to the hilt and that as he is already having his mortgage paid through the existing mortgage payment protection plan, I can assume from the date that he received the £28K until the date he pays off his mortgage these monies as the claimants capital.

    I ask because it does not seem that he is using the monies for their intended purpose and I assume that this money is held in a bank account somewhere, which he has access too and can use the monies for whatever purpose he likes.

    all advice and comments welcome

    Many thanks


    “Am I being cynical in thinking that the claimant is insured to the hilt”

    I think you have answered your own question really. Smart claimant some would say…and if the law requires you to disregard income and / or capital then it is not at the discretion of the decision-maker.


    Thought as much but at least its one more reference page to enclose in my ‘do’s and don’ts’ of benefits

    Many thanks for reply

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