If I have more than £16000 in bank

Hi, it's possible if I succeed in getting my insurance company to pay out the critical illness policy
It may put me over the £16k limit, does anyone have advice for me should this happen.
At the moment I have ESA I'm in support group.
I also have high mobility with low care on DLA
Thanks
William

Hi William,

DLA is not means tested so it will not make any difference how much money you have in the bank.

ESA claims can be either occupational or income-related (or a mixture of the two). Contributory ESA will not be affected by income or assets (as long as they do not class this as a 'pension'). The £16000 that you mention is relevant to income-related ESA as this is the upper limit for payments to continue. Anything over £6000 will reduce the ESA payable.

There is a further issue - I know that DWP will 'claw back' benefits paid if the claimant also gets compensation for the same problem. I don't know how they deal with insurance payouts - I expect Gordon will be able to comment.

Thanks for your response, is the claw back you mention definite?
Could you also advise if I receive the payout could I pay the money towards my mortgage?
My mortgage ends when I'm 70 and I don't have the money to pay it off, therefore I would have to sell it, it's interest only I don't have endowments etc
Thanks again
William

hi i had the same issue a critical illness policy and I asked the insurance company too pay the money direct to my mortgage lender and I informed DSS as I was on income related ESA there wasn't a problem as it wasn't a second home, hope this helps
edward