Permanent health insurance & ESA

Millhouse wrote: 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?

Hi Mh,

Yes, that is correct !

The issue of ESA and PHI was discussed some time ago : Here.

N.B. As you will see from the above linked historical topic, whether deductions can be made from your CB ESA due to receiving payments of PHI is dependent on whether you are still classed as being "Employed" or not.

Thanks anyway !

bro58

Millhouse wrote: 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.

Hi,
I maybe didn't make myself clear in my original post.
My employer is wanting to finish me due to ill health. The company pension scheme are offering me a ill health pension of around £130 a month.
Around 15 years ago I took out a private permanent health insurance to cover me up to my 65th Birthday if i was unable to carry out certain daily activities.
So the insurance policy is not linked to my employer.
So am I right in my understanding of your post that the insurance policy would not be taken into account by esa
All this is really stressful to get my head around.

Thanks

Glen wrote:

Millhouse wrote: 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.

Hi,
I maybe didn't make myself clear in my original post.
My employer is wanting to finish me due to ill health. The company pension scheme are offering me a ill health pension of around £130 a month.
Around 15 years ago I took out a private permanent health insurance to cover me up to my 65th Birthday if i was unable to carry out certain daily activities.
So the insurance policy is not linked to my employer.
So am I right in my understanding of your post that the insurance policy would not be taken into account by esa
All this is really stressful to get my head around.

Thanks

Hi G,

If this is a private PHI Scheme and you have paid more than 50% of the Premiums yourself, as referenced @ : 44723 of DM Guide Chapter 44

"Permanent health insurance

44723 Where the claimant

1. receives a payment under a permanent health insurance scheme

and

2. had contributed over 50% of the premium then the payment is not deducted from ESA(Cont)"

No deductions should be made from your CB ESA.

However, to avoid any future confusion, I would inform The DWP about the PHI and your Works Pension in writing, if/when you apply for ESA.

bro58

Hi G,

Just to add,

If you are the member of a Union, I would strongly advise that you seek their advice and help in any decision involving terminating your employment before actually doing so.

bro58

Thanks for the help and advice.
I am a member of unite. So will seek some advice from them with regards to work wanting to finish me on ill health grounds.

Thanks again

Glen wrote: Thanks for the help and advice.
I am a member of unite. So will seek some advice from them with regards to work wanting to finish me on ill health grounds.

Thanks again

Hi G,

Yes that would be the right thing to do !!

They should be experienced in dealing with such issues and advise you paying due regards to your best interests.

At least if you do end up claiming CB ESA, you have the relevant Decision Maker's (DM) Guidance and ESA Legislation to refer to.

One thing that you may wish to take into account, is that if you do claim ESA, and are placed into The WRAG of ESA in receipt of CB ESA payments, said payments will only last for 365 days : 12 Month Limit for ESA(CB)

Once those 365 days have been exhausted any and all income from PHI and Works Pension will be offset £ for £ against any Income Related (IR) ESA entitlement.

If this income when added to any other Household Income equals or exceeds your IR ESA entitlement, you will not receive any further ESA payments unless you can gain entry to The Support Group (SG) of ESA.

See also : 24 hour work rule for ESA(IR)

Asset rule for ESA(IR)

Maybe this is something else that you may wish to factor in when making a decision.

N.B. The 365 days "clock" starts counting down from the date that you start receiving CB ESA, this includes whilst you are in The Assessment Phase, and will continue to count down if you are placed into The WRAG.

There is no 365 days limit if you are assessed and placed into The SG, for as long as you remain in The SG.

Good luck

bro58