Life Insurance CAN affect your qualification for SSI. The cash value built up in your policy is the same as cash in a bank account. If you are required to keep your assets under a certain amount, your cash value in your life insurance can put you over that amount.
Life insurance can affect SSI if it exceeds the resource limit.
What IS allowed in life insurance:
Policy or policies with combined face amount of $1,500 (if married, $1,500 for each spouse)
$1,500 prepaid burial fund (if married, one for each spouse)
If the person or couple with the burial fund also has life insurance, some of the burial fund may count toward the $2,000 limit for an individual or $3,000 limit for a married couple.
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What IS allowed in life insurance:
Policy or policies with combined face amount of $1,500 (if married, $1,500 for each spouse)
$1,500 prepaid burial fund (if married, one for each spouse)
If the person or couple with the burial fund also has life insurance, some of the burial fund may count toward the $2,000 limit for an individual or $3,000 limit for a married couple.