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Impact on SSI if face value of whole life policy is under $10k?

+11 votes
Will it impact SSI if the face value of my whole life policy is under $10K and I named my over age 21 daughter as owner over 5 yrs ago?
related to an answer for: Do life insurance policies impact SSI?
asked Apr 11, 2017 by anonymous

1 Answer

0 votes
Most whole life policies do have a cash value that would count as income towards your SSI. However, since you have named your daughter as the owner and she has a insurable interest in your life it will not impact your SSI at all. By naming her as the owner of the policy, even over 5 years ago, you have taken that policy out of your possession. If you ever want to borrow against your policy, then you will have to go through your daughter since she is the owner. She can borrow against the policy on your behalf and it still will not impact your SSI. You may change the owner of your policy at any time, allowable by your insurance provider, as long as that person has an insurable interest in your life. This can include a child, friend, or other relative.

Remember besides whole life policies, most term and final expense insurances will not make an impact either. A good thing to keep in mind when buying life insurance, when on SSI, is if you can borrow against it then that will count as income and will have an impact. Also, if you are not the owner it will not have an impact.

You may go to the following website for any questions on what impacts SSI. https://www.ssa.gov/ssi/text-resources-ussi.htm
answered Apr 19, 2017 by ronanona (3,070)
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