Do life insurance policies impact SSI?

In general, owning a life insurance policy should not impact an individual's eligibility for Supplemental Security Income (SSI), which is a need-based program that provides assistance to those with limited income and resources. This is because life insurance policies are typically considered exempt assets for SSI purposes. However, if the cash value of a life insurance policy exceeds the SSI resource limits, it could affect eligibility for SSI. In 2021, the SSI resource limit for an individual is $2,000, so if the cash value of the policy, plus any other assets, exceeds this amount, the individual may not be eligible for SSI. It's also important to note that the death benefit paid out to a beneficiary of a life insurance policy is not considered income for SSI purposes. However, if the beneficiary receives a lump sum payment, such as through a viatical settlement, it could be considered income and impact SSI eligibility. It's always a good idea to consult with a financial advisor or an attorney who specializes in SSI and other government benefits to understand how a life insurance policy may impact eligibility.