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DEPARTMENT FOR AGING AND REHABILITATIVE SERVICES AUXILIARY GRANT PROGRAM NON-SSI RESOURCE ELIGIBILITY 11/18 CHAPTER E PAGE 83

43. Life Insurance Policies A life insurance policy is a contract. Its purchaser (the owner) pays premiums to the company that provides the insurance (the insurer). In return, the insurer agrees to pay a specified sum to a designated beneficiary upon the death of the insured (the person on whom, or on whose life, the policy exists). A life insurance policy is a resource if it generates a cash surrender value (CSV). Note: Term insurance and burial insurance do not generate a CSV, are not considered life insurance, and are not resources. 43.1. Value A life insurance policy’s value as a resource is the amount of the CSV. 43.2. Exclusion A life insurance policy is an excluded resource if its face values (FV) and the FV of any other life insurance policies the individual owns on the same insured total $1,500 or less. The FV of burial insurance policies; and term insurance policies do not count toward this $1,500 total. 43.2.1. Relation to Burial Fund Exclusion The Burial Fund Exclusion maximum of $1,500 must be decreased by the FV of any insurance policy on the life of the individual that is excluded under this provision. 43.3. Face Value Face value (FV) is the amount of basic death benefit contracted for at the time the policy is purchased. A policy's FV does not include: • The FV of any dividend addition, which is added after the policy is issued; • Additional sums payable in the event of accidental death or because of other special provisions; or • The amount(s) of term insurance, when a policy provides whole life coverage for one family member and term coverage for the other(s). 43.4. Cash Surrender Value