Miami, FL asked in Social Security for Florida

Q: Would my grandmother lose her SSI payments because of life insurance pay out?

My grandmother is getting SSI and recently my grandfather passed away who had life insurance. I have been paying for the life insurance for the past 20+ years. Now the check came in on my grandmother's name.

If she put this into her account would she loose her SSI payments? Would I not be able to use the money to pay for funeral expanses?

Related Topics:
1 Lawyer Answer
James L. Arrasmith
James L. Arrasmith pro label Lawyers, want to be a Justia Connect Pro too? Learn more ›
  • Social Security Disability Lawyer
  • Sacramento, CA

A: Life insurance proceeds are generally not counted as income for SSI purposes, so your grandmother's SSI payments would not be affected by the life insurance payout. However, if your grandmother's total resources (including the life insurance payout) exceed the SSI resource limits, then she may lose her SSI benefits. As of 2023, the SSI resource limit is $2,000 for an individual. If your grandmother's resources exceed this limit, she may be ineligible for SSI.

If the life insurance payout is used to pay for funeral expenses, that would also not count as income for SSI purposes. However, if the funds are not used for funeral expenses and are kept in her bank account, they would count towards her resources and could impact her SSI eligibility.

Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.

The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.

Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.