2-009.07A4b Cash Surrender Value

469 NAC 2-009.07A4b

Using the following criteria, the cash surrender value of life insurance owned by the client is considered a resource. If the combined original face value of all the life insurance policies owned by the client exceeds $1,500, the cash surrender value of all the policies is considered a countable resource. Each person in the unit is allowed the $1,500 exemption for the face value of his/her life insurance.

The worker must disregard the following in determining the combined original face value of all life insurance policies:

1. Burial insurance; and

2. Life insurance policies where the proceeds are irrevocably assigned for the purpose of burial

See 469 NAC 2-009.07A3b for the treatment of burial insurance.

If the cash surrender value is to be counted towards the total resource of a client, consideration is given to any outstanding loans against the policy in determining net cash surrender value (see 469 NAC 2-009.06).

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