Life Insurance for SSI Recipients (Discounts & Rates)

Can someone who receives Social Security income get after-death benefits? Life insurance for SSI recipients can be a little tricky. Age and disability are factors when calculating life insurance rates, and they are also included for your SSI. However, too much life insurance could cause you to forfeit your federal monies.

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D. Gilson is a writer and author of essays, poetry, and scholarship that explore the relationship between popular culture, literature, sexuality, and memoir. His latest book is Jesus Freak, with Will Stockton, part of Bloomsbury’s 33 1/3 Series. His other books include I Will Say This Exactly One Time and Crush. His first chapbook, Catch & Release, won the 2012 Robin Becker Prize from Seve...

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Leslie Kasperowicz holds a BA in Social Sciences from the University of Winnipeg. She spent several years as a Farmers Insurance CSR, gaining a solid understanding of insurance products including home, life, auto, and commercial and working directly with insurance customers to understand their needs. She has since used that knowledge in her more than ten years as a writer, largely in the insuranc...

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Reviewed by Leslie Kasperowicz
Farmers CSR for 4 Years

UPDATED: May 27, 2021

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The Highlights

  • Building cash value with your life insurance is not a good idea for SSI recipients
  • SSI benefits are impacted by income and resources
  • In some cases, life insurance doesn’t count as a resource

If you receive supplemental income from the federal government, you know that some rules and requirements need to be followed to qualify for aid.

There are limitations to the income and resources, which can make life insurance for SSI recipients a little tricky.

Keep reading to learn more about and where to get Social Security life insurance reviews and what your options are if you choose to buy SSI life insurance.

If you’re ready to compare life insurance quotes for SSI recipients, use our free tool. Enter your ZIP code to speak to agents in your area.

Can you own a life insurance policy if you receive SSI?

The value of your resources will impact your eligibility for SSI benefits.

The Social Security Administration allows people to build resources — such as purchase affordable life insurance for SSI recipients — so long as their resources are lower than your SSI for the month.

Life insurance is considered a resource by Social Security if 1) you own it or 2) it has cash surrender value.

Life insurance that has a cash value and is owned by you or your spouse is excluded from your resources if the total face value of all policies is not more than $1,500.

If the total face value of such insurance is more than $1,500, then the total cash surrender value of the insurance counts as a resource.

Keep reading to learn about how life insurance policies affect SSI.

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Does life insurance affect Social Security disability benefits?

Three major factors could impact your SSI death benefits if you’re trying to purchase life insurance: age, income, and disability.

Life insurance companies for SSI recipients will consider these factors and will generally have income requirements. This means that life insurance rates for SSI recipients will be impacted.

How will your benefits be affected?

You won’t be eligible for Social Security if your monthly resources are more than a certain limit. One way to avoid this is to have someone else as the main person on the policy.

The policy owner must have a measurable interest in your life to be the owner of the policy; this could be grown children, spouses, some employers, and close friends.

This means that, although you would be turning over all control of your life insurance policy, you would not lose SSI.

Life Insurance for SSI Recipients: The Bottom Line

When you’re shopping around for life insurance as someone who receives income for Social Security, you need to be careful about how you set up your policy.

If your life insurance resources are more than or equal to the income you receive from Social Security or a set amount based on your benefit, you will lose your SSI during the duration of the policy.

However, it is always best to confer with an agent from the Social Security Administration about how life insurance impacts your benefits.

In the meantime, get an idea of what life insurance options are in your area. Enter your ZIP code to speak with someone, today.

Are you looking for free insurance quotes?

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