1 Tex. Admin. Code § 358.353 - Term and Burial Insurance
The Texas Health and Human Services Commission does not count term insurance or burial insurance as a resource, except as described in paragraphs (3) and (4) of this section.
(1) Term insurance is a contract of temporary
protection. The insured pays relatively small premiums for a limited number of
years, and the company agrees to pay the face amount of the policy only if the
insured dies within the time specified in the policy. It has no cash surrender
value.
(2) Burial insurance is a
form of term insurance. By its terms, burial insurance can only be used to pay
the burial expenses of the insured.
(3) If a term insurance policy has been
purchased by a life insurance company and premiums are used to purchase
separate whole life coverage, the whole life coverage is subject to the
provisions of
20 C.F.R.
416.1230.
(4) If a term insurance policy is a
participating life insurance policy, any dividend accumulation at interest is a
countable resource.
Notes
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