Sara Routhier, Managing Editor and Outreach Director, has professional experience as an educator, SEO specialist, and content marketer. She has over five years of experience in the insurance industry. As a researcher, data nerd, writer, and editor she strives to curate educational, enlightening articles that provide you with the must-know facts and best-kept secrets within the overwhelming world o...

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Leslie Kasperowicz holds a BA in Social Sciences from the University of Winnipeg. She spent several years as a Farmers Insurance CSR, gaining a solid understanding of insurance products including home, life, auto, and commercial and working directly with insurance customers to understand their needs. She has since used that knowledge in her more than ten years as a writer, largely in the insur...

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Reviewed by Leslie Kasperowicz
Farmers CSR for 4 Years

UPDATED: May 10, 2021

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The Brief

  • To receive Supplemental Security Income or SSI, you must be blind, disabled, or 65 and older with limited income and resources
  • You can buy burial or term life insurance without compromising your SSI benefits
  • Whole policies with a cash value will affect your SSI eligibility

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.

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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
AgeFemale Average Monthly Rates for $5,000 PolicyMale Average Monthly Rates for $5,000 PolicyFemale Average Monthly Rates for $10,000 PolicyMale Average Monthly Rates for $10,000 Policy
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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.

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.