How to file for disability, Filing for SSI
Disability Requirements, Disability Status
How long is the wait?, Disability Application
The Social Security List of Impairments
Qualifying for Disability, Mental Disability
Disability Lawyer Info, Disability Back Pay

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.

Essential Questions

What is the Social Security Disability SSI list of impairments?

Can you work while getting or applying for Disability?

How Often Does Social Security Approve Disability The First Time You Apply?

Tips for getting Social Security Disability or SSI benefits approved

What medical conditions will get you approved for disability?

What kind of Mental Problems Qualify for Disability?

Receiving a Disability Award Letter

Conditions Social Security will recognize as a disability

Previously answered questions regarding SSD and SSI

Applying for disability in your state

Most popular topics on SSDRC.com

Social Security Disability SSI Questions

The listings, list of disabling impairments

Can a mental illness qualify you for disability?

Disability Lawyers prevent unnecessary denials

How much Social Security Disability SSI back pay?

How to apply for disability for a child or children

Filing a Social Security Disability SSI application

Filing for disability - when to file

How to apply for disability - where to apply

Qualifications for disability benefits

How to Prove you are disabled and Win your Disability Benefits

Qualifying for Disability - The Process

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?

Common Mistakes to avoid after being denied for Disability

Social Security Disability SSI Exam tips

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These pages provide answers to basic questions about pursuing disability benefits

How to claim disability
Disability claim appeal status
How to get you Social Security Disability status
How does a person qualify for disability benefits?
How do you Apply for SSI?
How Much Income Can you Earn If you draw Social Security Disability?
Can you work if you get SSI?
How long will you get disability after an award notice?
If You Get Social Security Disability or SSI, Will Your Dependents Get A Check?
Social Security Disability denied
Time on a Social Security Disability Decision
How to apply for disability for a child or children
Denied Twice For SSD or SSI Disability, What Do I Do?
f I get disability will my children receive benefits?
Social Security Disability SSI - Retroactive Benefits Vs Back Pay Benefits
How long do you have To Be Out Of Work Before You Get Social Security Disability (SSD)?
How to file for disability and medical conditions
What Does Social Security Consider To Be a Disability?
When does social security consider you eligible for disability benefits?
Qualifying for disability benefits with the social security administration
How to get disability
Will I be approved for disability on my appeal?
How to appeal a disability denial

For the sake of clarity, SSDRC.com is not the Social Security Administration, nor is it associated or affiliated with SSA. This site is a personal, private website that is published, edited, and maintained by former caseworker and former disability claims examiner, Tim Moore, who was interviewed by the New York Times on the topic of Social Security Disability and SSI benefits in an article entitled "The Disability Mess" and also by the Los Angeles Times on the subject of political attempts to weaken the Social Security Disability system.

The goal of the site is to provide information about how Social Security Disability and SSI work, the idea being that qualified information may help claimants pursue their claims and appeals, potentially avoiding time-consuming mistakes. If you find the information on this site helpful and believe it would be helpful to others, feel free to share links to its homepage or other pages on website resource pages, blogs, or social media. Copying of this material, however, is prohibited.

To learn more about the author, please visit the SSDRC.com homepage and view the "about this site" link near the bottom of the page.