1110.000.00 Resources

1110.020.16 Life Insurance

IM-14 February 23, 2007

The cash surrender value (CSV) of life insurance policies is excluded. The CSV of excluded life insurance remains excluded when it is irrevocably assigned to partially or totally fund a burial contract. The following conditions must be met:

  • a valid preneed burial contract exists
  • an agreement exists with the insurance company either transferring ownership of the policy to the funeral home or naming the funeral home as the irrevocable beneficiary

Life Insurance information is not collected for food stamp-only applications. However, if the application is for other programs, the life insurance policy information is collected on the Life Insurance (FMW1) screen. FAMIS excludes the CSV of life insurance policies for the Food Stamp Program.

Always review the Financial Resource Detail Summary (FMWG) screen prior to authorizing a case action to ensure resources you expect to be excluded are excluded in the determination. From the Action Authorization (FM3H) screen, press F15=RESOURCE to view the Financial Resource Detail Summary (FMWG) screen. If the resource is incorrect, select the resource and press F6=DETAILS to return to the appropriate screen and correct the inaccurate information.