Kansas Family Medical Assistance
Manual (KFMAM)
Eligibility Policy - 11/21/2024
5405
5406 Insurance Payments - Payments from life or burial insurance as well as payments made for repair or replacement of property are exempt.
5406.01 Life and Burial Insurance Payments - Payments occasioned by the death of another person to the extent that the payments have been expended or committed to be expended for purposes of the deceased person’s last illness and/or burial. Such payments include, but are not limited to, proceeds from a life insurance or burial insurance policy, gifts, and inheritances.
5406.02 Repair and Replacement - Insurance payments received for the repair or replacement of property is exempt as income. This includes income from a one-time payment or a portion of a one-time payment from a settlement for repair or replacement of property or other settlement, including legal services and medical insurance payments.