Credit life and credit disability insurance policies are issued to or on behalf of borrowers, to cover payments on loans, mortgages, etc. in the event of death or disability. These insurance payments are made directly to loan or mortgage companies, etc. and are not available to the individual.

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  Payments made under a credit life or credit disability insurance policy on behalf of an individual are not income.

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  Food or shelter received as the result of a credit life or credit disability payment is not income. (Because the payment is not income, the value of the shelter received as a result of the payment is not ISM.)

Frank Fritz, an SSI recipient, purchased credit disability insurance when he bought his home. Subsequently Mr. Fritz was in a car accident and became totally disabled. Because of his disability, the insurance company pays off the home mortgage. Neither the payment nor the increased equity in the home is income to Mr. Fritz.