Child critical illness cover payout and UC £16000 threshold

Hi all looking for some advice.

My son was recently diagnosed with a condition covered under the Equality Act 2010.

I looked through my Critical illness cover and found a section where my children where also covered under, Child Critical Illness.

I called my insurance company, who confirmed that my son was eligible to make a claim under the Child cover element, however the successful claim would mean that the payout amount would be paid to me as the policy holder and push me over the UC 16000 threshold to continue claiming benefits for me and my disabled wife.

I have asked the insurance company if they could pay the money direct to my 21 yearold son, as the money would be for his care and needs, they said they usually pay the policy holder directly.

They said they can send a summary stating that the claim has been made for my son.
Having dealt with DWP in the past, nothing is straightforward and they always shoot first, then ask questions after.

My disabled son is now scared to claim the money that he is entitled to under my policy, and we are scared that if we make the claim that DWP will stop all our benefits.

If we move the money out of my account the same day as it is paid in, and move it into my sons account , we are fearful that the DWP will see this as deprivation of capital.

To be clear the claim is under the Child Critical illness Cover, the money would be his, for his care and needs. If we do not claim the money, for fear of DWP Repercussions, then this would disadvantage my disabled son greatly. Which cannot be right.

I would be most grateful for any advice

Thanks