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SB 432

AN ACT DISREGARDING THE CASH VALUE OF LIFE INSURANCE POLICIES IN ELIGIBILITY DETERMINATIONS FOR CERTAIN PUBLIC ASSISTANCE PROGRAMS.

2026 Regular Session

Connecticut bill excludes life insurance cash value from public assistance asset limits, potentially expanding eligibility while increasing state benefit costs.

PUBLIC HEARING 0310
#lifeinsurance #medicaid #publicwelfare #socialservices #departmentof #temporaryfamilyassistance(tfa)
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Bill Summary · SB 432

Legislative bill overview

SB 432 would exclude the cash value of life insurance policies from being counted as an asset when determining eligibility for certain Connecticut public assistance programs. Currently, applicants for benefits like SNAP, Medicaid, and other assistance may be denied or have reduced benefits if they own life insurance policies with accumulated cash value, which counts toward asset limits.

Why is this important

This change would allow lower-income individuals to maintain life insurance protection for their families without jeopardizing their access to critical public assistance. Life insurance often serves as a financial safeguard for dependents, and current policy can force difficult choices between maintaining coverage and accessing needed benefits—creating a potential poverty trap.

Potential points of contention

  • Cost to state budget: Expanding eligibility for assistance programs could increase state spending if more people qualify for benefits previously denied due to insurance assets
  • Definition of "cash value": Determining which insurance products and what thresholds qualify for disregard may create administrative complexity and potential disputes
  • Fairness concerns: Some may argue that accumulated insurance cash value represents genuine wealth and shouldn't be disregarded compared to other liquid assets held by assistance applicants

Compiled from official sources — confirm details with the bill’s official record.

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