What is the maximum amount of insurance a person can have and receive SSI?
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Asked June 5, 2017
First, we need to understand is that Supplemental Security Income (SSI) is a need based system. It is not like receiving Social Security when you turn 62 or older. It is not based on the amount you paid in while working. Neither is it the same as Social Security Disability which is based on a physical need. SSI has very strict rules about income. You may only have $2000 in assets, $3000 if married.
Not all assets are counted towards income. You may have a burial saving fund of $1500. Burial savings or plots for you or your immediate family also do not count towards your income or assets.
However, you are only allowed a life insurance policy with a $1500 cash value. A life insurance policy with more cash value than the allowed $1500 should be cashed in and used to pay for funeral expenses in advance. This will not count towards your allowable assets. Then a cash policy of $1500 can be kept to help pay for other end of life expenses.
Answered June 7, 2017 by GWGLife