Life Insurance Policy with Cash Surrender Value

Discussion in 'Countable Income' started by Cathy, Mar 15, 2015.

  1. Cathy

    Cathy Newbie

    Title is the issue. The policy has a Current Death Benefit of 11K and a Current Cash Surrender value of 10K and it generates an annual dividend value of about $300 that is buying more additional paid up insurance(tax deferred unless withdrawn). Parent does not file tax returns anyway(income lower than required).

    In this case, parent does not have to be dead to collect(can surrender for cash while alive).

    Should this be listed as an asset and will the VA count it as such ?

    Thanks !
  2. vetadmin

    vetadmin Administrator Staff Member

    Unless he surrenders it for the cash, no, you would not claim it.
  3. Cathy

    Cathy Newbie

    Makes sense; logic similar to home ownership and sale.
    Thank you.

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