Exclude as a resource those life insurance policies owned by one person that insure
only one person, if the cumulative FV of all policies held on that one person amount
to $1500 or less.
Do not include the interest or dividend additions that have accumulated on the FV when determining
whether a policy is a countable or excludable resource. Excluding the policy means
excluding the CSV not any other part of the policy (e.g., the dividend accumulations).
This life insurance exclusion applies per person--$1500 per insured individual.
EXAMPLE – Owner has three policies on herself
Mrs. Lambert, an aged individual, owns three life insurance policies on herself with
the following values:
$500 FV with $1000 CSV, and,
$400 FV + $500 FV + $200 FV = $1100 total FV which is less than $1500 total FV
The total FV of her policies is $1100 ($400 + $500 + $200 = $1100). Even though the total CSV of the three policies ($700 + $1000 + $400 = $2100 CSV) is more than the resource
limit of $2000, the life insurance policies are entirely excluded because the life
insurance policies are for the same insured person and the total FV is less than $1500.
EXAMPLE – Owner has policies on herself and others
Mrs. Lambert, from the previous example, also owns three additional life insurance
policies on herself and on other insured people. In this case, the claims representative
(CR) calculates for each insured, whether the total FV of those policies is less than
$1500. If the total FV of the policies owned on each of the other people is less than
$1500, those policies are also excluded.