5152-7        CASH VALUE OF INSURANCE (COUNTABLE)

Life insurance policies, burial insurance policies, and prepaid burial contracts that are not otherwise exempt will be counted against the resource limit.

The value of such policies is determined by subtracting the total dollar amount of all legal encumbrances against the policy (such as loans made against the policy or policy termination penalties) from the refund dollar value of the policy or contract. Use the value as of the month of the Family Medicaid eligibility determination. The cash surrender value may not be the same amount as the "face value" of an insurance policy.