Reply to: Employment and Income/Mortgage protection

[mikethebike]

OK, so sounds like its not worth the risk, as it borders on if not illegal, pretty stupid.

The policy I have is a Liverpool Victoria "Mortgage and Lifestyle protection" policy, had it for a few years now.

[speling bee]

Not easy its a PITA at times. But for £72/week its worth it and I will continue to do so if the need arises and I'm eligible.

Please dont make out its anything shady or illegal. As I point out every time, Im totally upfront and honest about things. I've had this conversation with loads of people at JSA and its allowed and, in their eyes, perfectly fair.

Remember the JSA people would much rather deal with people who are temporarily out of work but looking for work rather than spend their days chasing up scrotes who do their best not to work ever.

Out of genuine interest, do they know how much cash is in your Ltd bank account?

[TheFaQQer]

FTFY :-)

You see it as a right, I see it as sponging.

Personally, I wouldn't feel right claiming JSA when I'm employed by a company who has significant reserves which means that I don't need to waste my time getting a pittance every week.

Do you claim when you go on holiday as well?

[TheFaQQer]

Please dont make out its anything shady or illegal. As I point out every time, Im totally upfront and honest about things. I've had this conversation with loads of people at JSA and its allowed and, in their eyes, perfectly fair.

Show me where I said it was shady or illegal - I've not said either.

However, if you then proceed to moan about people who follow other, more serious, legal routes out of their problems, you lose what little credibility you have.

[psychocandy]

Possibly. I have no idea what you need to do to get the money I'm entitled to because I'm too proud, and I'd rather just pay my taxes and let the real spongers have it all, as I've not done it.

My point was just that if you need to be claiming something to get the insurance to pay out, there are people that you can ask about how to do it, though.

I suppose you could theoretically get the best of all worlds - claim on the insurance, be claiming JSA to show that you are out of work and looking, and still be working unpaid on plan B. Why doesn't everyone do it? That certainly would be a worrying trend.

FTFY :-)

[psychocandy]

Possibly. I have no idea what you need to do to sponge off the state, as I've not done it.

My point was just that if you need to be claiming something to get the insurance to pay out, there are people that you can ask about how to do it, though.

I suppose you could theoretically get the best of all worlds - claim on the insurance, be claiming JSA to show that you are out of work and looking, and still be working unpaid on plan B. Why doesn't everyone do it? That certainly would be a worrying trend.

Claimed years ago in permie days. One thing - if you know you're going to be redundant or even got an inlkling then they wont pay out if you take out the policy now. They'll do their best to make sure you had no knowledge in advance.

Also, if I remember correctly, I had to get some sort of form stamped by job centre every time so I could claim so you had to be claiming JSA (or at least signing on).

Working whether paying yourself or not is not allowed when you claim JSA. After all you're not avail for other work then.

[psychocandy]

Claiming JSA is easy enough. PsychoCandy does it after every gig, on the grounds that you can.

Not easy its a PITA at times. But for £72/week its worth it and I will continue to do so if the need arises and I'm eligible.

Please dont make out its anything shady or illegal. As I point out every time, Im totally upfront and honest about things. I've had this conversation with loads of people at JSA and its allowed and, in their eyes, perfectly fair.

Remember the JSA people would much rather deal with people who are temporarily out of work but looking for work rather than spend their days chasing up scrotes who do their best not to work ever.

[psychocandy]

I thought that had changed cause he doesn't pay any NI or something. There was a thread not so long ago he commented which made me think this but I can't remember the exact details.

Yeh there was some talk about this but I think the bottom line was it was crap. Reminds me though to check with my accountant.

I know when you do claim they check your NI contributions for the last two full years before your claim. Last time I claimed it was all ok.

I think as long as your salary exceeds the level even though you might not pay any NI then you're credited with it (for both pension and other purposes).

[speling bee]

Possibly. I have no idea what you need to do to sponge off the state, as I've not done it.

My point was just that if you need to be claiming something to get the insurance to pay out, there are people that you can ask about how to do it, though.

I suppose you could theoretically get the best of all worlds - claim on the insurance, be claiming JSA to show that you are out of work and looking, and still be working unpaid on plan B. Why doesn't everyone do it? That certainly would be a worrying trend.

A worrying new trend.

[TheFaQQer]

I thought that had changed cause he doesn't pay any NI or something. There was a thread not so long ago he commented which made me think this but I can't remember the exact details.

Possibly. I have no idea what you need to do to sponge off the state, as I've not done it.

My point was just that if you need to be claiming something to get the insurance to pay out, there are people that you can ask about how to do it, though.

I suppose you could theoretically get the best of all worlds - claim on the insurance, be claiming JSA to show that you are out of work and looking, and still be working unpaid on plan B. Why doesn't everyone do it? That certainly would be a worrying trend.

[speling bee]

Hi,

I would like to ask a theoretical question

Lets say I have Mortgage/Income protection, which kicks in 3 months without employment (not self imposed).

I will be made redundant from a permie role in the next few months
I start up a limited company, with me as sole director
I get a contract, but my company does not pay me any money (the ltd co does of course get paid by the client)

Could I still receive the income/mortgage protection payments?

The contract will be for training purposes (which is why I will not get paid), and the money in the company will give me a nice buffer in case I cannot find a contract in the future.

Ask the product provider.

[northernladuk]

Claiming JSA is easy enough. PsychoCandy does it after every gig, on the grounds that you can.

I thought that had changed cause he doesn't pay any NI or something. There was a thread not so long ago he commented which made me think this but I can't remember the exact details.

[TheFaQQer]

I presume, although I don't know, that you would have to be claiming some form of income support/ jobseekers allowance to 'prove' that you're not working.

How would it be if you genuinely left your permie job and then volunteered to work for a charity for free? I suspect that wouldn't work either.

Claiming JSA is easy enough. PsychoCandy does it after every gig, on the grounds that you can.

[JRCT]

I presume, although I don't know, that you would have to be claiming some form of income support/ jobseekers allowance to 'prove' that you're not working.

How would it be if you genuinely left your permie job and then volunteered to work for a charity for free? I suspect that wouldn't work either.

[Mark McBurney@CMME]

Income protection and mortgage protection are two separate things.

Mortgage protection is very scarce now, and is generally provided by a mortgage lender alongside your mortgage, so that it covers your mortgage payment after XX weeks of being unable to work.

Income protection is a separate policy that provides you a monthly income after XX weeks of being unable to work - NOT including redundancy - underwritten/verified at the point of CLAIM rather than application. In your example you are not out of work as you are then self-employed, ergo no payout. They would probably ask for a projection from your accountant re: this year's income and then ask why you wouldn't be paying yourself (note that you wouldn't necessarily have to, the provider could just work off the company profit).

It sounds as if what you're talking about is some sort of 'Accident, Sickness and Unemployment' cover, which would be a bugger to try and claim on I suspect in ANY circumstance!

You then have a minefield of what you cover and how you pay it - a mortgage is a personal debt so paying for protection against it from a limited company will undoubtedly open some sort of tax on the benefit in kind, or may even be impossible.

I think that's a bit more conclusive than the fraud theory, though no more accurate!