Agent Owner, Gilmore Insurance Services, Marysville, Washington State
Can you have life insurance on SSI? I know of no ruling from any governmet agency that restricts a person from owning life insurance while collecting SSI. Clearly it would be best to have insurance in place before anything happened to an individual and an insurance carrier may take acception, but I am not aware of any government entity that prevents owning life insurance.
That is a great question! There are no rules that would prevent you from having a life insurance policy while collecting SSI. It is actually a really good idea to have a policy, as it can cover your final expenses, burial costs, and leave a legacy behind for loved ones.
There are sometimes issues with Medicaid, however. While they have no problem with you having a policy for your final expenses and burial, they do have an issue if you have a policy that has a great cash value. As you may know, Medicaid is designed for those folks who are severely economically disadvantaged, and they look for any large tangible assets that you can use to pay for your own medical expenses before expecting the taxpayers to pay for them.
As a rule, a smaller final expense policy will fall under their threshold for assets, and after doing a little documentation, is no issue. If you do not have a policy, please look for an independent agent in your area who can help you work your way to finding the right policy for you. If you need help, please feel free to contact me, and I'll help in any way that I can. Thank you for asking!
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There are sometimes issues with Medicaid, however. While they have no problem with you having a policy for your final expenses and burial, they do have an issue if you have a policy that has a great cash value. As you may know, Medicaid is designed for those folks who are severely economically disadvantaged, and they look for any large tangible assets that you can use to pay for your own medical expenses before expecting the taxpayers to pay for them.
As a rule, a smaller final expense policy will fall under their threshold for assets, and after doing a little documentation, is no issue. If you do not have a policy, please look for an independent agent in your area who can help you work your way to finding the right policy for you. If you need help, please feel free to contact me, and I'll help in any way that I can. Thank you for asking!