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DEPARTMENT FOR AGING AND REHABILITATIVE SERVICES AUXILIARY GRANT PROGRAM NON-SSI RESOURCE ELIGIBILITY 11/18 CHAPTER E PAGE 113 62. Term Insurance Term insurance is a death benefit plan and offers no cash values. It is not a resource and does not impact the Burial Fund Exclusion unless the policy is assigned to fund a pre- need funeral. 62.1. Verification If the policy is assigned to fund a preneed funeral, obtain a copy of the policy. If not, accept the individual’s statement.

63. Time Deposits (Certificates of Deposit and Savings Certificates) A time deposit is a contract between an individual and a financial institution whereby the individual agrees to leave funds on deposit for a specified period (six months, two years, five years, etc.) and the financial institution agrees to pay interest at a specified rate for that period. Certificates of deposit (CDs) and savings certificates are common forms of time deposits. 63.1. Ownership Assume that the person designated as owner in the account title owns all the funds in the account. 63.2. Value The resource value of a time deposit at any given time is the amount the owner would receive upon withdrawing it at that time, excluding interest paid that month. Generally, this is: • The amount originally deposited; • Plus accrued interest for all but the current month; • Minus any penalty specified on the certificate for early withdrawal. 63.2.1. Early Withdrawal Withdrawal of a time deposit before the specified period expires incurs a penalty, which usually is imposed against the principal. This reduces its value as a resource. On rare occasions, the terms of a time deposit