A lump sum payment used to pay expenses that are related to receipt of the lump sum income is exempt.
Example: A client is a beneficiary of a $2,000 life insurance policy. If $1,800 is used for the funeral expense of the insured, budget $500 ($2,000 life insurance settlement minus $1,500 maximum for funeral and burial)
as lump sum income.
Illinois Department of Human ServicesJB Pritzker, Governor · Grace B. Hou, Secretary
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