Cheap Life Insurance for SSI Recipients in 2024
7.8 million Americans rely on Supplemental Security Income or SSI. Fortunately, it is possible to secure burial or term life insurance for SSI recipients without impacting your benefits. However, whole policies with a cash value will affect your SSI eligibility. Most people pay about $26 per month for life insurance. However, life insurance rates for SSI recipients depend on your age, medical record, and current health status.
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Eric Stauffer
Licensed Insurance Agent
Eric Stauffer is an insurance agent and banker-turned-consumer advocate. His priority is educating individuals and families about the different types of insurance coverage. He is passionate about helping consumers find the best coverage for their budgets and personal needs. Eric is the CEO of C Street Media, a full-service marketing firm and the co-founder of ProperCents.com, a financial educat...
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UPDATED: Nov 7, 2024
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident life insurance decisions. Comparison shopping should be easy. We are not affiliated with any one life insurance provider and cannot guarantee quotes from any single provider. Our life insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about life insurance. Our goal is to be an objective, third-party resource for everything life insurance related. We update our site regularly, and all content is reviewed by life insurance experts.
UPDATED: Nov 7, 2024
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident life insurance decisions. Comparison shopping should be easy. We are not affiliated with any one life insurance provider and cannot guarantee quotes from any single provider. Our life insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
On This Page
- 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
| Age | Female Average Monthly Rates for $5,000 Policy | Male Average Monthly Rates for $5,000 Policy | Female Average Monthly Rates for $10,000 Policy | Male Average Monthly Rates for $10,000 Policy |
|---|---|---|---|---|
| 60-years-old | $22.92 | $27.50 | $42.50 | $51.67 |
| 65-years-old | $27.50 | $32.92 | $51.67 | $62.50 |
| 70-years-old | $34.58 | $42.50 | $65.83 | $81.67 |
| 75-years-old | $44.58 | $55.83 | $85.83 | $108.33 |
| 80-years-old | $61.25 | $74.58 | $119.17 | $145.83 |
| 85-years-old | $82.50 | $101.25 | $161.67 | $199.17 |
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.
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Frequently Asked Questions
How can SSI recipients find affordable life insurance?
SSI recipients can compare quotes from different insurers, focusing on term life insurance or burial insurance options. Nonprofit organizations and community resources can also provide assistance.
What is burial or final expense insurance for SSI recipients?
Burial or final expense insurance covers funeral and other end-of-life expenses. It ensures SSI recipients have coverage for these costs without affecting benefits.
What is the difference between term life insurance and whole life insurance for SSI recipients?
Term life insurance is temporary, while whole life insurance is permanent. Term policies have no cash value, while whole policies do (which affects SSI benefits).
How much does life insurance for SSI recipients cost?
Life insurance rates for SSI recipients vary based on age, medical records, and health status. The average cost is around $26 per month.
Can SSI recipients buy life insurance without losing benefits?
Yes, SSI recipients can buy burial or term life insurance without losing benefits if the policy has no cash value.
What life insurance policy should you purchase if you receive SSI?
Look for term life insurance or burial/final expense coverage without cash value or dividends.
Compare Quotes From Top Companies and Save
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Eric Stauffer
Licensed Insurance Agent
Eric Stauffer is an insurance agent and banker-turned-consumer advocate. His priority is educating individuals and families about the different types of insurance coverage. He is passionate about helping consumers find the best coverage for their budgets and personal needs. Eric is the CEO of C Street Media, a full-service marketing firm and the co-founder of ProperCents.com, a financial educat...
Licensed Insurance Agent
Editorial Guidelines: We are a free online resource for anyone interested in learning more about life insurance. Our goal is to be an objective, third-party resource for everything life insurance related. We update our site regularly, and all content is reviewed by life insurance experts.