Permanent health insurance & ESA

Hi,
I have been off work for several months and I am still receiving full pay.
My employer is now talking about ill health retirement.
They have provided me with a illustration of what pension I would receive. I am a bit disappointed as they have not enhanced it at all due to ill health.
The amount i would receive would be around £110.00 a month.
I also have a insurance policy that pays 50% of my earnings as a monthly income to my 65th birthday.
Am I right in thinking that when work end my contract I would be able to apply for ESA
If i was successful with the ESA claim would they take the income from the insurance policy into account.
Or would i still be entitled to both payments?

Hope this makes sense.

Thanks

So you think the insurance policy payment would also be taken into account.
I thought the insurance policy wouldn't effect the esa payment.

Thanks

Glen wrote: So you think the insurance policy payment would also be taken into account.
I thought the insurance policy wouldn't effect the esa payment.

Thanks

Hi G,

Yes, you will have to inform The DWP of the income when you apply for ESA.

bro58

This is taken from Chapter 44 of the Decision Maker's Guide. Insurance policy payments are classed as pension, so you need to declare and it will be deducted even from contribution based ESA.

Is there any way of appealing against your pension not retiring you on ill health?


The reference in the guide is 44700. It's on page 187
www.gov.uk/government/uploads/system/upl...e/446170/dmgch44.pdf




Insurance policy providing benefits in connection with
physical or mental illness or disability
44700 A payment under a permanent health insurance policy is a pension payment for the
purposes of ESA(Cont)1
. It means2
any periodical payment
1. made to a former employee and
2. which was arranged by an employer under an insurance policy and
3. which provides benefits to the former employee in connection with physical or
mental illness or disability and
4. is payable on the termination of employment.

Interesting.


Just seen further down that document for Pension disregards - 44723.


Does that mean if it is classed as a permanent health insurance policy and 50% of the premium was contributed by the claimant, then it is disregarded?