View more on these topics

Law says ASU is not income

The newspapers continue their ill-informed debate concerning ASU policies and state benefits.

Grip benefits from the provision of ASU policies to insurance intermediaries and I am regarded as something of an expert in this field. Having obtained, as a trained lawyer, a copy of the up-to-date regulations from the Department of Social Security I spoke to leading counsel in this field.

My investigations confirm that ASU insurance purchased to protect a contractual obligation such as a mortgage or loan is not to be regarded as income. Therefore, it must not be taken into account in assessing benefit, regardless of whether the money is paid to the policyholder or lender.

The rules are clear and it is not helpful for ABI or trade association representatives to speak on matters they know little about. May I suggest they stop losing us potential clients.

Simon Burgess


London EC3


Sipp mates

Eagle Star&#39s Flexible Drawdown Plan, in conjunction with James Hay Pension Trustees, aims to offer a flexible charging structure to meet the needs both of commission and fee-based IFAs. Our panel look first at how it fits into the market. Tinslay says: “The plan offers a good self-invested facility and is simple in structure. Eagle […]


Britannia Life has closed to new IFA business. Will you miss it? “On balance, no. It is an interesting indication that the market is becoming more competitive and there is a squeeze on margins.” David Cumberland, Robin Bradford (Life & Pension Consultants) “Yes, because they have got damn good fund performance and give a good […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment