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contract holder (seller of the property) retains title to the property until the entire purchase price is paid. Exclude the value of the property for both the contract holder and the purchaser.

LIFE INSURANCE 1.18 ALL A life insurance policy is a contract between the policy owner and the company that provides the insurance which is also referred to as the insurer. The company agrees to pay money to a designated beneficiary upon the death of the insured which is the person whose life the policy insures. The policyholder (or owner) is usually the person who pays the premiums and is the person who has the right to change the policy. However, the policyholder and the insured may be different people. A policy is an asset of the policyholder. The amount of basic death benefit contracted for the time the policy is purchased is referred to as the face amount, face value, amount of insurance, amount of policy, or sum insured. It does not include dividends or additional amounts payable because of accidental death or other special provisions. The amount of money the policy owner can get by canceling the policy before it matures or the insured dies is referred to as the cash surrender value (CSV) or cash value. A life insurance policy is an asset if it generates a CSV. Generally, term insurance does not have a CSV. A whole or straight life policy generates a CSV. The CSV usually increases over time. A loan against a policy reduces its CSV. A policy may be able to generate a CSV but have a CSV of zero (i.e., a person recently purchased a policy). Such a policy is an asset with zero value. It is important to remember that the CSV and the face value are not the same. A life insurance policy may be assigned to pay funeral/burial expenses (see Section 1.19: Life Insurance Funded Funerals in this Chapter). MA There is no exclusion. Count the CSV of all life insurance policies owned by the asset group. TANF The entire CSV is excluded. GC See TANF. FS See TANF. LIFE INSURANCE FUNDED FUNERALS 1.19 ALL A prearranged funeral contract may be funded using life insurance if a person purchases a life insurance policy and assigns (i.e., directs) the proceeds to be used for his/her funeral expenses. In addition to assigning the proceeds, a person may transfer ownership of the insurance policy to a trust, funeral director, or other third party. A person who purchases a life insurance policy marketed and designed to fund funerals will usually do the following: • assign the proceeds to fund his/her prearranged funeral, or • irrevocably/permanently transfer ownership of the insurance policy to a trust. Exclude the value of life insurance funded funerals.