Burial insurance is defined as insurance whose terms specifically provide that the proceeds can be used only to pay the burial expenses of the insured, or a life insurance policy that is irrevocably assigned for the specific purpose of burial. When the proceeds of a life insurance policy are irrevocably assigned for the purpose of burial, the cash value is not available and is disregarded as a resource. If a separate administrative fee is charged in addition to the premium for the insurance policy, it is not included in the $3,000 maximum.
If the amount of insurance designated for burial exceeds $3,000, the worker shall determine whether the individual deprived himself/herself of the amount in excess of $3,000 for the purpose of qualifying for public assistance, according to 468 NAC 2-008.10.
(8/29/88)