Critical Illness Insurance and Universal credit

Hi,

UC regs Sch10 (9) states life insurance policies are ignored as capital under UC, but I can’t find anything around Critical Illness. In this specific case it is a decreasing insurance in line with the mortgage and although not specifically tied to the mortgage, it was taken out with the mortgage and the intention is to pay the mortgage and therefore will be used to pay off debt.
This would be in line with Sch 10, but I wondered if anyone had experience of this?

Any case law to support crit illness as the same as a life policy?

thanks

R(IS) 7/98 might be useful.

the cash value of the bond fell to be disregarded as capital under paragraph 15 of Schedule 10 to the Income Support (General) Regulations 1987, as the “surrender value of a policy of life insurance”. It was sufficient that the bond contained provisions for payment on contingencies dependent on human life, even if those provisions were peripheral to the main purpose of the bond

Or as CPAG puts it (p.154 2024/25), if the policy terms include how the payment on death is calculated, the whole investment is ignored.