As such, you report any life insurance policies that you own when you are applying for SSI benefits. My father recently received SSDI. Any over payment they take 10% of SSI payment until it’s paid off. You should enlist the help of an attorney who specializes in disability claims. If the policies for my son have beneficiaries other than than my son, is that still considered his income? You will need to speak with an attorney that specializes in this area. However, it may be in your best interest to consider how buying a new policy might impact your SSI benefits. My mother had term life in the amounts of 5000 and 2000 with me as beneficiary. What can I do? Every aspect of your finances is evaluated to determine if you meet established guidelines for collecting benefits. Hi Lorene, It’s a difficult situation for you, no doubt. My husband has 2 whole life Insurance with a cash value of 3,000.00 each and I’m beneficiary of them. Either way they get it back . Because, as mentioned above, any money that your receive from a permanent life insurance policy, whether it is in dividends or via a loan that you have taken out against the cash value of your policy, can affect your SSI benefits. It’s a pain, it takes SS 6-9 months to do paperwork, that’s if they don’t forget about it.. I’ve been there. Save receipts, they want them. No I mean SSI.I didn’t have enough work credits to apply for SSD.I can get SSI no problem except what I talked about.I would never turn in my life insurance because it would be the only way my children could pay for my burial and everything.I have already talked to SSA.gov about SSD and they said the same thing about the work credits.You have to have 40 and I only have 21 so that solves that. The government periodically changes rules, and typically to the benefit of paying less money out less often. The effect of a life insurance inheritance on your Social Security depends on what type of Social Security payments you receive. Tom, I am an insurance agent and I have some clients that have disabled children. If policy10,000; the first month received you’ll payback SSI payment until that money is down to $1200. SSI payments are based on your financial value. i have a whole life insurance policy on my mother for her final expences she is the owner but i pay it. – life insurance. I'M RECEIVING SSI AND I WAS NAMED AS THE BENEFICIARY ON A LIFE INSURANCE POLICY. we didn't know the insurance policy will affect my SSI. Don’t pay up rent, that’s what SSI check for. My mom just received a payoff from a life insurance policy from her brother. When evaluating rates, please verify directly with your insurance company or agent. Every aspect of your finances is evaluated to determine if you meet established guidelines for collecting benefits. And will the proceeds from the life insurance death benefit affect the childs SSI benefit? In order to receive aid from this program, you must be in one of the following categories: In addition, income and resource limits must also apply in order to qualify for Supplement Security Income. Food Stamps are also based on your financial worth, and any month you have more assets than the amount designated in your state, you will not be eligible to receive food stamps. It depends on a number of factors, including if you receive benefits such as from a DI rider on the policy. It is my policy on him. If you spent it in 1month, they want to see receipts, you can’t give away either. In order to qualify for SSI, both earned and unearned income is taken into consideration. SSDI payments are based on your working history, and are based on how much reported income you had in the past, not on how much you currently have in the bank. Furthermore, you must disclose any money that you are receiving from your life insurance, even after you start receiving SSI benefits. Can the beneficiary of the life insurance policy be a special needs trust for the child? But her name still shows INSURED. My mom is in nursing home paralyzed from a stroke. Should I file a claim for hitting a road obstruction? SSI has a $2000 a month resource limit, including the SSI payment. Only permanent life insurance products accumulate cash value, and that value differs based on the policy type and the premium. Can he transfer the whole life to his spouse or the kids? Proud graduate of Brown University (Go Bears!) The reason? Please fill all the fields below (your email won't be displaied on the site). If you are covered under Medicaid, an inheritance has the potential to cause you to lose the assistance for a period of time. Is this going to affect her benefits? You are not prohibited or otherwise excluded from purchasing a new life insurance policy just because you are currently collecting SSI benefits. Preventing family member from utilizing the USAA services. My question is, we were told by SSI that my son could not have insurance policies with a face value of more than $2000 dollars. Steve the policy can definitely fund a trust for the benefit of the child. Also, the amount that you took out will reduce the death benefit by the same amount that you took out, and will remain that way unless you pay back the money. Each month you have that $7000 they will subtract each monthly SSI payment, it takes 6-9 months for paperwork, they call it over payment take 10% out of SSI payment until paid off. You have SS and SSI confused. Term life policies do not carry a cash value and are not counted as income because you cannot withdraw or borrow against any portion of the policy. His expertise is insurance and employee benefits. The SSI question is a good one but unfortunately complex. With that said, if you carry a permanent life insurance policy, such as whole life or universal life, it’s important to understand if the cash value of your policy will affect your ability to receive Supplement Security Income. I have desminopathy . Understanding how life insurance affects eligibility will allow you to more properly plan for your application. He has a couple life insurances. Is this allowed? Life insurance is an asset that could play a major role in your ability to collect SSI and the amount of your award. This policy was started in 2009. I do not know if life insurance counts as well. The term won’t affect his SSDI. Any other income that is unearned is calculated at 100 percent. Borrowed car ticket for no insurance who pays? Is it cheaper to insure a Honda CRV or Mazda CX5? Any life insurance policies you own must be disclosed and will undoubtedly be considered when your SSI application is processed. All cities have free legal advice, call any senior advocacy group. Term life insurance contracts have no present value and do not accumulate equity like permanent policies. I do not own a car but drive my boyfriends car and I want to protect myself if I get in an accident. Seems like it wouldn’t matter unless I drawed from it . I have Whole term life insurance will it affect my ssidi benefits. I’m not sure why he was denied either. Term Life Insurance and SSI. In general, if your calculated net worth is greater than $2000 you are not eligible to receive an SSI payment. My son was denied ssi because I own a life insurance policy with a cash benefit of $2080. An inheritance is any amount of money or assets left to you in someone’s will. Accelerated death benefits should not affect your social security, only dividends or payments from the policy. I’m 46 years old and had a heart attack and mental problems starting in 2011.I still have trouble remembering things.I’ve missed important things in life.I want to be able to leave my 2 children something because I have nothing. You're not limited to just one person. I have been trying to get my SSI for a few years now.They used to not say that if you have a life insurance of say 5000.00 that they would not use the 5000.00 against you,but just what the cash value is.Why have they changed the rules about that and that if you owned more than 1 vehicle that they would use the value of the oldest vehicle you own.Also that you weren’t allowed to have a bank account if you do get SSI.Thats totally ridiculous.