Affordable Life Insurance for SSI Recipients

Supplemental Security Income (SSI) is a federal program for blind, disabled, or aged people with limited income or resources. Fortunately, you can buy life insurance for SSI recipients without losing benefits.

Below, compare sample life insurance rates and discover how different policies affect your social security benefits.

Find the best life insurance company for SSI recipients near you by entering your ZIP code into our free quote tool above.

Does life insurance affect SSI benefits?

Unfortunately, any life insurance policy with a cash value impacts SSI benefits.

SSI is a federally provided resource. To qualify, you must be blind, disabled, or at least 65 with limited income and resources.

According to the Social Security Administration (SSA), 7.8 million people received SSI payments in March of 2021. While receiving SSI, your income is limited.

Does life insurance affect social security disability benefits or SSDI? No, SSDI payments depend on work history, not income.

Income refers to more than a job. It also encompasses your financial investments.

While 50% of earnings per month valuing $65 or more are exempt, only the first $20 of unearned income per month is exempt.

Most permanent or whole life insurance policies include something called a cash value.

If a person receiving SSI accesses that cash value, it’s counted as unearned income, impacting your benefits.

However, term life insurance and final expense insurance do not have a cash value and cannot impact your SSI.

What life insurance policy should you purchase if you receive SSI?

As previously mentioned, look for term life insurance quotes for SSI recipients or burial and final expense coverage.

Often, there’s an age limit associated with term life insurance. There’s also a chance you’ll outlive the policy term.

Final expense insurance, on the other hand, is a permanent policy.

Compare monthly average burial life insurance rates for SSI recipients in the table below.

Average Monthly Burial Insurance Rates for SSI Recipients

Burial insurance usually covers the cost of a funeral, about $9,000.

While there is an SSI death benefit paid to a surviving beneficiary, the amount is only $255.

Case Studies: Affordable Life Insurance for SSI Recipients

Case Study 1: Securing Coverage Without Impacting Benefits

John, an SSI recipient, wanted to ensure his final expenses would be covered, but he was concerned about the impact of life insurance on his SSI benefits. After careful research, he learned that he could purchase burial or term life insurance without affecting his benefits, as long as the policy had no cash value.

Considering his options, John decided to opt for burial insurance to cover his funeral costs while maintaining his SSI eligibility.

Case Study 2: Finding the Right Policy for Financial Security

Megan, a disabled individual relying on SSI, sought life insurance coverage to provide financial security for her family after her passing. She explored various options, comparing term life insurance and whole life insurance policies.

Understanding the implications of cash value on SSI benefits, Megan decided to go for a term life insurance policy that met her coverage needs and ensured her family’s financial stability without affecting her SSI eligibility.

Case Study 3: Evaluating Costs and Benefits for SSI Recipients

Steven, an aged SSI recipient, wanted to purchase life insurance to alleviate the financial burden on his family when he passed away. He considered both burial and term life insurance options and compared the monthly average rates.

After discussing the implications with a licensed life insurance agent, Steven decided to go with a burial insurance policy that provided coverage for his final expenses and allowed him to maintain his SSI benefits.

Life Insurance for SSI Recipients: The Bottom Line

Ultimately, you can qualify for social security and life insurance if you purchase a policy with no cash value or dividends.

Look for term policies or burial insurance with enough coverage to pay for all of your final expenses.

Find affordable life insurance for SSI recipients right now by entering your ZIP code into our free rate tool below.