Policy 317:35-5-41.2(c) Life Insurance
When determining life insurance as a resource use the following considerations:
Term policies and accidental death and dismemberment policies
These policies are exempt regardless of face value. Exception: if the policy has a cash value.
Face Value $1500 or less
If the total face value of all of the life insurance policies is $1500 or less, both the face value and cash surrender value is exempt as a resource.
Face Value Exceeds $1500
If the total face value of all of the life insurance policies exceeds $1500, the cash value is considered as a resource. Life insurance policies which do not provide a cash surrender value are not used in determining whether the total face value of all policies is over $1,500.
For additional information on determining life insurance as a resource, please refer to the following flow charts.
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