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Will this stop me from getting JSA if I were to lose my job? Watch

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    I'm thinking of taking out an income protection policy that would pay around £900 a month for a year if I were to lose my job or were unable to work due to an accident or ill-health.

    Would it stop other benefits from coming into operation though?
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    Best asking the job centre... I would have thought not as it is not an income from working. How much is that costing out of interest?
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    (Original post by TheOtts)
    Best asking the job centre... I would have thought not as it is not an income from working. How much is that costing out of interest?
    Thanks I'm hoping not to have to use it, but just wanted to check.

    My policy is £300 a year btw.
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    (Original post by TheOtts)
    Best asking the job centre... I would have thought not as it is not an income from working. How much is that costing out of interest?
    It doesn't matter where the income comes from.
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    There's 2 types of JSA: income based, and contribution based. You won't be eligible for the income based one if you have income from this policy, but if you've previously made enough NI contributions you'll still get that kind.
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    (Original post by Chadya)
    Thanks I'm hoping not to have to use it, but just wanted to check.

    My policy is £300 a year btw.
    Are you injury prone or something? Why not just setup a savings account. I don't think I know one person who has not been able to work through illness or injury. What job do you have?
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    (Original post by TheOtts)
    Are you injury prone or something? Why not just setup a savings account. I don't think I know one person who has not been able to work through illness or injury. What job do you have?
    I work in an office, so I'm not accident prone.

    It's not so much the accident/illness thing I'm interested in; it's more if I'm made redundant. I already try to save 10% of my salary for an emergency fund.
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    (Original post by Chadya)
    I work in an office, so I'm not accident prone.

    It's not so much the accident/illness thing I'm interested in; it's more if I'm made redundant. I already try to save 10% of my salary for an emergency fund.
    Assuming you do not get anything back from income insurance if you do not claim, I would be inclined to just put the money aside instead. You can have up to £16,000 in savings before being exempt from income-assessed Jobseeker's Allowance (JSA). Council tax and housing benefit are processed alongside JSA claims too. You also have more legal protection, so to speak, if you are on government unemployment benefit than if you were on a low income (i.e. in terms of the ease of deferring unsecured loans etc.).

    I suppose it depends on your circumstances. If you have a mortgage and are confident of being able to find work then income insurance might be better for you personally. But I would personally draw upon the benefit system. You have paid into it so you should take out of it too.
 
 
 
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