The cash surrender value of a policy is countable only to the extent to which it is
available to the recipient. If there is a current loan outstanding against the cash
surrender value, only the net cash surrender value available to the recipient is countable
under the dollar maximum.
To consider the cash surrender value countable under the dollar maximum, the policy
must be in the possession of the recipient. If the recipient, as the insured individual,
has paid or is paying premiums on an insurance policy that is in his or her possession,
the cash surrender value is countable.
The cash surrender value of policies in which the recipient is named as the insured
will not be considered a resource to him or her if the policies are in the possession
of the beneficiary of the policy or person other than a spouse, and the premium is
being paid by the beneficiary of the policy or other person other than the spouse.