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Aged, Blind and Disabled Manual Policy Manual Number: 110.050 Section: Financial Eligibility Requirements Chapter: ABD Countable and Excluded Resources

September 1, 2026 Division of TennCare 28 Under the terms of the life estate, Mrs. Jones is entitled to live in the house for the rest of her life and to any produce, income, etc. generated by the farm. To determine the value of Mrs. Jones’ life estate, the Current Market Value (CMV) of the property ($100,000) is multiplied by the life estate factor corresponding to her age in the table (0.60522), resulting in a life estate value of $60,522. The penalty is assessed for the difference between the value of the asset transferred ($100,000) and the value of the life estate ($60,522), or a penalty based on $39,478 of assets transferred for less than FMV.

Life Insurance Resource Type Life insurance is determined countable or excluded based on the type of life insurance owned by the individual and/or its intended use.

1. Definitions

Insured: The individual upon whose life insurance is effected.

Beneficiary: The individual, entity or organization named in the contract to receive the policy’s proceeds upon the death of the insured.

Owner: The individual who has the right to change the policy and is typically the person who pays the premiums.

Face Value (FV): The amount that is contracted for at the time the life insurance policy is purchased (the amount to be paid out when the insured dies). The FV does not include any dividend additions or additional amounts paid in the event of an accidental death or other special provision. Cash Surrender Value (CSV): The amount, which increases with the age of the policy, the insurer will pay upon cancellation or surrender of the policy before the death of the insured or maturity date of the policy.

Dividends: Any interest paid by the insurance company to its policy holders. If dividends are paid, they may be paid directly to the owner, added to the CSV of the policy, or to purchase additional coverage.