can i have term life insurance while my daughter collects ssi?
UPDATED: Dec 5, 2017
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Asked December 5, 2017
You say your daughter collects SSI. There is a limit to how much income you can receive on top of that. Your income can range from a part-time job and an investment to life insurance. There are some insurance policies that will count against you.
Term life insurance should not be one of those policies that fall into that category. The determining factor here is the cash value. In most cases, term insurance does not count because there is nothing to borrow against or withdraw. There are some extenuating circumstances where your term life insurance might have some cash value.
You may or may not fall into that category. You do have an option. You can name someone else as the owner of the term life insurance policy. The policy will still be yours, another name will be attached to it. The only person who can do that is someone who has an interest in your life. Your daughter could be someone to name.
Your daughter will have ownership of your policy, as well as her SSI. You will face one downside. You will need to get permission from her to borrow on it. If your term life insurance policy does not fall under this example, then you should not have a problem. Your daughter can collect her SSI without penalties or loss of money. You can also maintain your policy without any issues. Is your daughter working part-time? Does she bring in any extra income outside of her SSI? Any extra income could be counted against you or her.
Your best bet is to contact your term life insurance policy company and ask them. There might be extenuating circumstances with your policy. Your daughter should contact her SSI representative and speak to them. They can help alleviate any stress you might be having.
Answered December 6, 2017 by ronanona