As a life insurance policy owner may use accelerated death benefit payments for food
or shelter, these payments are income when received and resources if retained into the following month. This transaction is not a conversion
of a resource.
If an individual receives accelerated death benefit payments, and the payments do
not preclude SSI eligibility due to excess income or resources, determine whether the
FV and/or CSV of the life insurance policy must be re-verified.
Re-verify the life insurance policy if, prior to receipt of the accelerated death
the value of the life insurance policy's CSV precluded SSI eligibility, but the individual
may now be eligible; or
the life insurance policy was an excluded resource and its FV reduced the maximum
burial fund exclusion available to the individual. (For a definition of burial insurance,
see SI 01130.300B.4.).
If re-verification is necessary, evaluate the life insurance policy and any other
relevant documentation in the policy owner's possession to determine the effect of
the accelerated payments on FV and CSV. If necessary, contact the life insurance company
for the required information.
If the policy owner expects to receive accelerated death benefit payments in the future,
explain the effect of any further reduction in the policy's FV on the maximum burial
fund exclusion available (if applicable).