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1. Count income deemed from an institutionalized spouse to the a/b who is the community spouse. 2. Count income deemed from an institutionalized spouse to the a/b who is a dependent family member.

V. Living Needs Benefits A living needs benefit is a provision that allows a terminally ill person (or in some cases, individuals permanently confined to a medical institution) to receive all or part of the proceeds of his life insurance policy while living. Depending on circumstances, these payments can be received either as a lump sum or on an ongoing basis.

1. If an a/b has a life insurance policy which allows him to receive his death benefit while living and he meets the insurance company's requirements for receiving the proceeds, they will not be required to file for such proceeds. 2. If an a/b does file for and receive the proceeds, count the payment as income in the month received. Any portion remaining in the following month will be considered an available resource. 3. If payment is received on an ongoing basis, verify the amount and count as a monthly benefit. 4. If payment is received as a lump sum: a. If received in the base period month, disregard as income for the prospective period. b. If received in the month of application, prior to approval of the case, or prior to authorization of a case in deductible status, count as income. c. Count the actual amount of payment if received in a month in which there is a request for retroactive coverage. d. If received in a month after applicant is authorized, do not count as income. Any portion remaining in the month following receipt is a countable resource. 5. Verification source – Contact the insurance company who is administering the policy.

W. Rental Income

Rental payment which an a/b receives for the use of real or personal property, such as land, housing or machinery is counted as unearned income to the a/b.

1. How to Count Rental Income