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irrevocable. 7. If there is any amount of exclusion left, continue to the next excludable item, XIII.E. E. Cash Surrender Value of Life Insurance When total face value of all life insurance policies which generate a cash value owned by the a/b or a financially responsible individual exceeds $10,000: 1. After deducting irrevocable burial arrangements and revocable burial arrangements, deduct the cash value of life policies designated for burial on the life of the individual from the amount remaining in that individual’s $1500 burial exclusion. EXAMPLE: Mr. and Mrs. Blue applied for Medicaid. Mr. Blue has a whole life policy on himself. The face value is $50,000 with a cash value of $2,500. No assets have yet been applied to the burial exclusion. Only $1500 can be applied to Mr. Blue’s burial exclusion and none to Mrs. Blue as she is not the insured. 2. Accept the verbal statement of the policy owner or his representative that the policy is designated for burial. 3. If there is any amount of exclusion left, continue to the next item, XIII. F. 4. If burial exclusion is used up: a. At application, cash surrender value of life insurance policies that exceeds the $1500 burial exclusion limit of a designated policy is a countable resource. b. At redetermination, the original amount of cash surrender value of life insurance policies when total face value exceeds $10,000 that exceeded the $1500 burial exclusion (counted at application and not excluded as part of the $1500 burial exclusion) continues to count in resources. However, increases in cash surrender value are ignored as long as the policy(s) is designated for burial. EXAMPLE: Single a/b has one life insurance policy with face value of $13,000. The cash surrender value at application was $3000. The a/b stated it is intended and needed for burial expenses. He has no other resources. $3000 Cash surrender value of life insurance - 1500 Burial exclusion (no other burial assets) $1500 Excess counts in resources At review the cash value has increased to $3,500. The a/b continues to 102