Is The Cash Surrender Value In Insurance Policies Counted For Social Security Disability?Social Security Disability eligibility depends on three things. The first thing that must be considered when determining eligibility for SSD is whether or not the disability claimant is insured for Social Security Disability benefits in the first place. To be insured for SSD disability benefits, the disability claimant must have worked enough in the years prior to becoming disabled to be insured. An individual must have earned one quarter per year from the age of twenty-one until the year they became disabled to be fully insured and have worked twenty of the last forty possible work quarters, or five out of the past ten years, to be disability insured (special rules are in place for individuals who are under thirty-one years of age that require less work quarters to be disability insured). Disability claimants must be both fully insured and disability insured to be eligible for Social Security Disability. If the disability claimant is insured, the second thing that could affect disability eligibility is work activity. If a disability applicant is working over SGA, their disability claim will be denied prior to being sent (to disability determination services where cases are assigned to disability examiners) for a medical decision. Finally, a disability claimant must be found medically disabled. Generally, if an individual is A) insured, B) is not working over the SGA monthly earnings amount, and C) is found to be medically disabled, they will be approved for Social Security Disability benefits. Cash Surrender Value Now, to the topic of this post: Resources, a.k.a. assets, have no importance in Social Security Disability entitlement (as opposed to SSI disability, where the limit for countable assets is 2,000 for an individual and 3,000 for a couple). Therefore, the cash surrender value of an insurance policy is not an issue. In contrast, however, the cash surrender value of an insurance policy or policies is counted toward the resource limit of the Supplemental Security Income disability program. Eligibility for SSI disability benefits may be affected by the cash surrender value of insurance policies. The SSI disability program has strict resource limits if the cash surrender value of an insurance policy is over the couple's or individual's resource limit. As such, the disability claimant or beneficiary could be denied benefits even if they have been medically approved for disability, or are currently receiving SSI disability benefits. Keep in mind, cash value of insurance policies is not the only resource that could affect eligibility for SSI disability. Other resources that could count toward the limit are: vehicles, land or homes (other than the home the disability claimant lives in), stocks, bonds, 401K plans, workman's compensation settlements, jewelry, antiques, or just about any other thing that can be readily converted to cash. About the Author: Tim Moore is a former Social Security Disability Examiner in North Carolina, has been interviewed by the NY Times and the LA Times on the disability system, and is an Accredited Disability Representative (ADR) in North Carolina. For assistance on a disability application or Appeal in NC, click here. Most popular topics on SSDRC.com Social Security Disability in North Carolina Common Mistakes to avoid after being denied for Disability Tips to Prepare for Filing for Social Security Disability or SSI Advice to Win SSD and SSI Benefit Claims Social Security Disability SSI Questions What is the difference between Social Security Disability and SSI? How to get disability for depression Getting disability for fibromyalgia SSI disability for children with ADHD What is the Application Process for Social Security Disability and SSI? Social Security Disability SSI Exam tips More Social Security Disability SSI Questions What makes you eligible for Social Security Disability or SSI? Related pages: Can you get disability for OCD? Can you get disability for Chronic fatigue and Fibromyalgia? Is Chronic Fatigue considered a disability by Social Security? How to file for disability in Louisiana Proving Functional Limitations and why this is Important on a Disability Case Filing for disability and ankylosing spondylitis How to file for disability in Minnesota Enough Work Credits For Social Security Disability Benefits? Filing for disability with depression Disability claims involving spinal stenosis, arachnoiditis, degenerative disc Polymyalgia rheumatica versus fibromyalgia Memory loss and filing for disability Social Security Disability denied Disability denied twice How many times will Social Security deny you? |
