LIFE INSURANCE SR 94-04, 04/94 (AAM-A)

Life, group, term, and fraternal insurance policies owned by an individual which have no equity value and whose face values are payable only upon death of the insured.

Treatment: Excluded Resource

Life, group, term, and fraternal insurance policies owned by an individual which have an equity value.

Treatment: Excluded or Countable Resource.

1. Determine the face value of all the life insurance policies the individual owns which have an equity value.

2. Add the face value of these policies together.

3. If the combined face value is $1,500 or less, exclude the policies as a resource.

4. If the combined face value is over $1,500 determine the equity value of the policies. Count the equity value of the combined life insurance policies which have a face value over $1,500 as a countable resource.