Life Insurance Matured

Discussion in 'General Discussion' started by chrstna446, Aug 5, 2013.

  1. chrstna446

    chrstna446 Newbie


    Both my parents were awarded A&A benefits last fall. In May the VA deposited $5,000 in their bank account because my dad had a life insurance policy with the VA that matured.

    From these boards, I learned that life insurance does not count as chargeable income, since it is not usually only good after some one dies. Does anyone know how this will be looked at by the VA in regards to continuing their A&A eligibility.
  2. lindalouky

    lindalouky Newbie

    Life insurance policies that haven't matured are not countable, because they are not payable to the insured or his estate (unless very poorly planned), but instead pass to the beneficiary. However, when a policy matures and the holder is paid out, that's an asset, just like cash in the bank. However, this "windfall" shouldn't affect the award, I wouldn't think, unless this takes your parents over the asset limit. Please, someone feel free to correct me if I am wrong about this. I would also like to think that since it was a VA policy that they would have adjusted A & A if it need be adjusted, but that may be me just expecting a huge bureaucracy to be efficient...
  3. vetadmin

    vetadmin Administrator Staff Member

    It really depends on what their monthly expenses for care are, and if $5,000 has much impact on their overall financial eligibility. The VA no longer does the annual EVR in case you were not aware of that.
  4. chrstna446

    chrstna446 Newbie

    Thanks for the replies. I guess we will have to wait and see. I am aware of the fact that we do not have to file an EVR, but I could assume the VA reports the payout???

    I really would like to keep that money in the bank, since I know my parents intent was to keep it to bury them and not to burden their family when they leave this earth, but I don't want to hinder them from this benefit that helps them while they are still alive.
  5. vetadmin

    vetadmin Administrator Staff Member

    Consider paying for the final arrangements now.
  6. chrstna446

    chrstna446 Newbie

    Thank you. That's actually an excellent idea.

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