Would someone who has life insurace policies with a cash value totaling $3,700 still be eligible for SSI?
SSA considers any life insurance policy with a face value of $1,500 or higher. The face value is how much insurance you're buying, (e.g., $5,000, $10,000, etc.). The cash value is what you'd get for the policy if you cashed it in. Since this person’s policies are valued at $3,700, s/he is over the resource limit for an individual ($2,000). In order to fall below the resource limit, she would need to cash in one (or more) of the policies depending on what other resources she has. She would need to use/spend that money to live on before becoming eligible for SSI.