Document exempt group life insurance held as a condition of employment or provided by an employer, by entering in the case record the insurance company's name, policy number, and employer's name and address.
Examine and document in the case record all life insurance policies. Apply the total cash values of life insurance policies to the asset limit.
To determine cash value, use the policy's cash value tables. When a policy's tables do not show the cash value, the client must provide proof of the policy's cash value.
A life insurance policy is the property of the insured unless:
- a valid assignment of the contract has been made; or
- an irrevocable beneficiary has been named; or
- the policy application states that someone other than the insured is responsible for paying the premiums, plus proof that the person is currently making the payments; or
- someone other than the insured claims ownership because they have paid the premiums, and provides proof of the payments; or
- the insured has given the policy as a gift to another person, agency or institution.
NOTE: Use a policy insuring children, but owned by someone else, when the policy is owned by a parent who lives in the home with the children.
A client can prove ownership of life insurance policies by someone other than the insured in one of the following ways:
- A copy of the policy application that shows the other person was the applicant, or the premiums were to be paid by that person. The other person must also provide proof that they are paying the premiums.
- Canceled checks or money orders written by the other person to the insurance company as the payee or endorser, or a statement from their bank showing regular withdrawals in the amount of the premium on dates within the time allowed for premium
- Insurance company receipts issued to the other person. Also official company notices of premium due, addressed to the other person or the insured in care of the other person, plus a statement from the company of the date the premium notices were sent
to the other person or the insured in their care.
- A written statement from the company's branch office or higher, that the company's records show that the other person paid the premiums for a specified period, or a statement that the premiums were collected from an address other than that of the
Refer to the Bureau of Program and Field Management Services in Springfield when the ownership of a life insurance policy by someone other than the insured cannot be conclusively determined.
Insurance Disability Benefits
Budget as income, disability benefits that reduce the face amount of a policy and are paid in installments. Budget the payments until the balance of benefits due, plus the value of the client's other assets, does not
exceed the asset limit.
If an insured client or dependent family member appears to be totally or partially disabled, review their insurance to determine if they have a policy that pays disability benefits. Total or partial disability includes loss of one hand and/or one
foot, both hands or both feet, the sight of both eyes, or is ill or feeble due to poor health or advanced age. Tell the insured to apply directly to the insurance company for any available benefits.
The client is responsible for verifying the availability and amount of any disability benefits.
Insurance for Burial
If the beneficiary of a policy is a responsible relative, tell the beneficiary that the insurance proceeds must be used for the client's burial expenses.