Page 32

Official source

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 32 Estimated CSV Calculation:

• Determine the number of years the policy has been in effect.

• Consult the table entitled Presumed Valuation Table below to obtain the percentage amount that corresponds to the number of years in effect.

• Multiply the percentage amount by the life insurance policy’s FV.

• The result is the Estimated CSV for the policy.

Note: If the estimated value is used and later verification is received that the actual amount is greater, there is no penalty for using the estimated value for the time it took to secure verification.

PRESUMED VALUATION TABLE Years in Effect Percentage of FV 20 or more 60% 15 – 19 50% 11 – 14 45% 6 –10 30% 4 – 5 20% 3 10 % 2 5% 1 0%

7. Additional Life Insurance Topics

Encumbered or Lapsed Policies

Secure written verification from the insurance company or the individual’s insurance agent for any life insurance policies that are either encumbered, i.e. the owner has borrowed against the CSV, or the policy lapsed when the owner stopped paying premiums.

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Page 32

Official source

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 32 Estimated CSV Calculation:

• Determine the number of years the policy has been in effect.

• Consult the table entitled Presumed Valuation Table below to obtain the percentage amount that corresponds to the number of years in effect.

• Multiply the percentage amount by the life insurance policy’s FV.

• The result is the Estimated CSV for the policy.

Note: If the estimated value is used and later verification is received that the actual amount is greater, there is no penalty for using the estimated value for the time it took to secure verification.

PRESUMED VALUATION TABLE Years in Effect Percentage of FV 20 or more 60% 15 – 19 50% 11 – 14 45% 6 –10 30% 4 – 5 20% 3 10 % 2 5% 1 0%

7. Additional Life Insurance Topics

Encumbered or Lapsed Policies

Secure written verification from the insurance company or the individual’s insurance agent for any life insurance policies that are either encumbered, i.e. the owner has borrowed against the CSV, or the policy lapsed when the owner stopped paying premiums.