Nonexempt assets within the asset limit can be held in a form other than cash.
Example: Mr. J is an AABD applicant. He has a $2000 face value life insurance policy with a $1000 cash value. He has no other assets. The insurance policy does not affect Mr. J's eligibility. The $1000 cash value life insurance is applied to his asset limit. Mr. J could have an additional $1000 in cash or other nonexempt assets and remain within the asset limit.