1030.020.00 Life Insurance, Pre-need (also known as Pre-paid) Burial Contracts, and Designated Burial Funds

1030.020.10.05 Agreements Prior to October 13, 1965

IM-155 October 7, 2019; IM-69 June 15, 2017

The amount of money which a participant paid prior to October 13, 1965 as advance payment for funeral or burial services is considered the cash surrender value.

  • There is no consideration of the revocability of the arrangement.
  • The claimant is considered as owning 100 percent (100%) of such funds.

Example:  Prior to October 13, 1965 a participant deposited $2,700 with a funeral home for the purpose of paying for his/her future burial expenses and applied for MHABD coverage on April 1, 2017.  The considered value of this resource is $2,700.