The Income Support (General) Regulations 1987

29.—(1) Any payment received under an insurance policy, taken out to insure against the risk of being unable to maintain repayments on a loan to which paragraph 7 or 8 of Schedule 3 applies (interest on loans to acquire an interest in the dwelling, or for repairs and improvements to the dwelling, occupied as the home) and used to meet such repayments, to the extent that it does not exceed—

(a) subject to sub-paragraph (2), the amount, calculated on a weekly basis, of any interest which is excluded under that paragraph;

(b) the amount of the payment, calculated on a weekly basis, due on the loan attributable to the repayment of capital; and

(c) the amount, calculated on a weekly basis, of the premium due on that policy.

(2) The amount to which sub-paragraph (1) (a) refers shall be taken into account in calculating the amount to be excluded under this paragraph only for such period during which there is applicable to the claimant 50 per cent of his eligible interest under paragraph 7 of Schedule 3.