The validity of a CSV waiver should be developed only if the CSV could be considered
a countable resource. If the total face value of all policies on the individual is
$1,500 or less, apply the life insurance exclusion (SI 01130.300).
If CSV is an issue, apply the following rules:
If the Waiver is Then:
Valid The CSV of the life insurance is not a resource.
Not valid The CSV is a countable resource unless:
-
•
It is designated as a fund set aside for burial. (the CSV may not all be excludable
if the individual's other assets set aside for burial, when added to the CSV, are
over $1,500), or
-
•
The individual is not the owner of the policy, or
-
•
The individual has no access to the CSV or loan value of the policy (e.g. the individual
has not owned the policy for 3 years - nonforfeiture provisions do not yet apply).
Note: If the individual is not the owner of the policy, or has no access to the policy,
it is not a resource. See section SI KC01130.300D.2 for information on transfer of ownership of a life insurance policy.