Insurance Payments
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The section Includes information about income from insurance payments.
Policy
Insurance payments received by the participant are countable as unearned income when any of the following apply:
●The payment is made payable to the participant and used for a purpose other than to replace or repair insured items.
●The payments are received monthly, bi-weekly, or weekly and used for a purpose other than to replace or repair insured items.
●The payments are used for or intended to meet basic needs(g).
See Leave Pay when an employer pays Short-Term and Long-Term Disability payments.
Insurance payments received by a participant are not countable as unearned income when the payment is intended to repay a specific bill or debt and is not used for other needs.
Insurance payments include, and are not limited to, all of the following insurance types:
●Accident Insurance
●Critical Illness Insurance
●Earthquake Insurance
●Flood Insurance
●Long-term Disability
●Short-term Disability
●Wage Insurance
For specific policies, see each of the following insurance payments:
●Life Insurance (See Inheritance)
Countable income is used to determine an income budget. (See Income Budgeting to see how FAA determines the income budget.) FAA needs to know about income that is both countable and not countable to determine whether a budgetary unit’s income is exceeding their expenses. (See Income Eligibility for more information about how FAA uses countable and not countable income.)
Verification
The participant has the primary responsibility for providing verification. (See Participant Responsibilities – Providing Verification for additional policy.)
For NA, all of the following income is required to be verified before eligibility is determined:
●Reported on a new application, during the interview of a new application, or changes reported before the eligibility determination of a new application.
●Changes after an eligibility determination of a new application (e.g., a renewal application, mid approval contact, etc.) and any of the following apply:
The source of the income has changed.
The income is questionable(g) or unclear(g).
The reported income amount has changed by $51 or more.
The previous verification in the case file is more than 59 calendar days old.
For CA, all income is required to be verified before determining eligibility.
Examples of verification that can be used for insurance payments include, and are not limited to, any of the following:
●Bank records
●Agency or payer providing the income
●Court records or court orders
●DCSS documents or print outs
●Divorce or separation papers or contact with the Clerk of the Court
●Insurance policies
●Participant statement verification can be used when obtaining documented or collateral contact verification may cause harm or undue hardship(g) for the participant or when all of the following occur:
Attempts to obtain the verification from an acceptable source are unsuccessful. This includes documented and collateral contact verification.
The participant’s statement is not questionable(g).
Legal Authorities
7 CFR 273.9(c)(8)
last revised 10/02/2023