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MAABD MAABD MAABD MAABD MAABD MAABD MAABD MAABD E-410 Division of Welfare and Supportive Services RESOURCES Medical Assistance Manual TYPES OF RESOURCES (not all inclusive) 24 Sept MTL 04/24 LIFE INSURANCE POLICIES (Cont’d)

LIFE INSURANCE POLICIES (Cont’d)

● Dread disease or catastrophic illness model, which allows policy holders to access their death benefits if they contract or acquire one of several specified covered conditions; and

● Terminal illness model, which allows policy holders to access their death benefits following a diagnosis of terminal illness where death is likely to occur within a specified number of months.

Some companies refer to these types of payments as "living needs" or "accelerated death" payments.

Depending on the type of accelerated payment plan, receipt of accelerated payments may reduce the policy's FV by the amount of the payments and may reduce CSV in a manner proportionate to the reduction in FV. In some cases, a lien may be attached to the policy in the amount of the accelerated payments and a proportionate reduction in CSV results.

Verification: (not all inclusive)

– Insurance policy/rider – Form 2015 from insurance company – Written statement from insurance company

Note: If the CSV is excluded in determining countable resources the FACE value of the life insurance policy may reduce an applicant’s burial exclusion. See Burial Funds.