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FAQ Home | General Questions | Critical Illness Insurance | Life Insurance | Home and Contents Hot Topics
Will a claim for critical illness affect any State Benefits?No, it should not affect your claim for State Benefits.There are a number of State Benefits obtainable if you are sick or disabled and some of these may apply if you are off work as a result of a critical illness. The allowances concerned are Statutory Sick Pay, Incapacity Benefit, Disability Living Allowance or Severe Disablement Allowance. (From time to time the Government changes these benefits so please double check this information with your local Benefits Office.) Currently, none of these benefits are means tested. Therefore, they will not be affected by your receipt of a lump sum from your insurer. If you have a partner who is a carer (or may become a carer as a result of your illness) they may also be entitled to a Carers allowance. At the moment this allowance is only paid if their income is below £77 per week (2003/04) Remember, all lump sum payouts from a critical Illness policy are tax-free. Frequently Asked Questions related to the above topic.
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