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 CFR §416.1230. (4) If a term insurance policy is a participating life insurance policy, any dividend accumulation at interest is a countable resource. |
