Introduction 5 402. 02 Resource Limit 5
Household Goods and Personal Effects
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- 402.18 Life Insurance
402.17.03 Household Goods and Personal Effects(Eff.10/01/05) POMS SI 01130.430 Household goods – Personal property found in the home and used in connection with normal maintenance, use, and residency of a home. They include:
Furniture Appliances Televisions sets Carpets Cooking and eating utensils Dishes Personal effects – Personal property that are worn or carried by an individual or that have an intimate relation to him or her. They include: Clothing Jewelry Personal care items Prosthetic devices Educational or recreational items Books Musical instruments Hobby materials Beginning April 2005, household goods and personal effects, regardless of their dollar value, are excluded in resource determinations. For determinations before April 2005, a general exclusion of up to $2,000 applies to the total equity value of household goods and personal effects other than those excluded regardless of value. The following items are excluded from resources regardless of value: One wedding ring and one engagement ring per individual Prosthetic devices, wheelchairs, hospital beds, dialysis machines and other items required by a person's physical condition Table of Contents 402.18 Life Insurance(Rev.09/01/14) POMS SI 01130.300 A life insurance policy is a contract. The purchaser (owner) pays premiums to the company (insurer). In return, the insurer agrees to pay a specified sum to a designated person(s), known as beneficiaries, upon the death of the insured person. The owner and the insured may or may not be the same person. The policy should state the owner’s name, if different from the insured.
Generally, the types of life insurance policies are: Term Life Insurance Usually in effect for a specific length of time such as 20 years, or length of employment. Does not accrue cash value. Whole Life Insurance Accrues cash value. Remains in effect unless the premiums are not paid or the policy matures. Burial Insurance – The terms of the contract prevent the proceeds from being used on anything other than burial expenses of the insured. A life insurance policy is a resource if it generates a Cash Surrender Value (CSV). The value of the insurance policy is the cash surrender value. Unless otherwise indicated, assume that a: Term policy without a table of CSVs, if it appears otherwise complete, does not generate a CSV; Life insurance policy that does not generate a CSV also does not pay dividends; Life insurance policy issued by a nonparticipating or stock company does not pay dividends; Life insurance policy issued by a participating or mutual company pays dividends. NOTE: The kind of company issuing the life insurance policy is usually identified by a designation following its name on the face page of the policy (“participating” or “non-participating”). If an applicant/beneficiary or his spouse owns life insurance, the policies should be verified. The individual/authorized representative should provide a copy of all the life insurance policies and the most recent dividend statement for each one. For all policies verify the following: Owner Insured Face Value Date the life insurance policy was purchased Maturity date, if specified Policy number Address, phone number, or any contact information for the insurance company Information regarding whether the life insurance policy pays dividends and, if it does, what option the policy owner selected for their disposition (i.e., accumulations, additions, applied to premiums, paid by check) Current amount of dividend accumulations, if any. If a policy is countable, in addition to what is listed above, verify the current CSV. This may be verified either by a statement from the company or by mailing a DHHS Form 1280 ME, Verification of Life Insurance Values, to the company. Make sure to include any: Dividend additions that may increase the value of the policy, and Loans that may decrease the value. If the total Face Value of policies owned by an individual insuring someone equals $1,500 or less, the life insurance is excluded. If there is a copy of the policy(ies) or other applicant/beneficiary provided verification in the case record, the Medicaid eligibility worker does not have to verify the policy(ies) with the insurance company. After exclusions are developed, any remaining cash value must be considered in the eligibility determination. The cash surrender value of any policy that cannot be excluded is countable toward the resource limit. Table of Contents Download 0.7 Mb. Share with your friends:
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