Can I have term life insurance while my daughter collects SSI?
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Asked December 5, 2017 by Andy Villena
Yes, it is possible to have term life insurance while your daughter collects Supplemental Security Income (SSI). SSI is a need-based program that provides financial assistance to individuals with disabilities or who are 65 years or older and have limited income and resources. Term life insurance is a type of life insurance that provides coverage for a specific period of time, typically 10, 20, or 30 years. It pays a death benefit to the policy's beneficiaries if the insured person dies during the term of the policy. Having term life insurance does not affect your daughter's eligibility for SSI as the benefits are based on her income and resources, not yours. However, it's important to note that if your daughter is a beneficiary of your life insurance policy, the death benefit may count as income for her and could potentially affect her SSI benefits. To avoid any potential issues, you may want to consider setting up a special needs trust or naming a trustee to manage the life insurance proceeds for the benefit of your daughter. This can help ensure that the funds are used appropriately and do not impact her eligibility for government benefits. It's also important to disclose any life insurance policies you have when applying for SSI benefits, as failure to do so could result in penalties or loss of benefits. In summary, it is possible to have term life insurance while your daughter collects SSI. However, you should consider setting up a special needs trust or naming a trustee to manage the life insurance proceeds to avoid any potential impact on your daughter's eligibility for government benefits.
Answered December 6, 2017 by ronanona