LIFE INSURANCE SR 99-25, 06/99 (AAM-A)

Life, group, term, and fraternal insurance policies owned by an individual which, by the conditions of the policy:

·   Have no past, current or future 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 currently have an equity value or have had an equity value in the past and may have an equity value in the future, such as when the individual has borrowed against the equity value of a life insurance policy and the policy will regain equity value when the loan has been repaid.

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.