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2159.1 Is life insurance considered a resource?
Life insurance is a resource if:
You own it; and
It has a cash surrender value.
For example, burial insurance and most kinds of term insurance have no cash surrender value. These are not resources.
2159.2 Can life insurance with a cash surrender value be excluded from resources?
Life insurance that has a cash surrender value and is owned by you (or your spouse) is excluded from countable resources if the total face value of all policies you own on any one person is not more than $1,500. However, if the total face value of such insurance is more than $1,500, then the total cash surrender value of the insurance counts as a resource, unless it is designated as funds set aside for burial. (See §2161.)
Last Revised: March, 2001
- Burial Funds
- Liquid and Non-liquid Resources
- What are the resource exclusions?
- Full Time Life Insurance Salespersons
- Retirement Insurance Benefits
- Renewal Commissions of Life Insurance Salespersons
- Does group-term life insurance count as wages?
- What are resources?
- Entitlement to Retirement Insurance Benefit
- When do you need to provide proof of age?
- When do parent's insurance benefits end?
- What are resource exclusions?
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