Is a Life Insurance Lump Sum Payout an "Asset" or "Income"?

I will shortly be receiving about $20,000 contained by a lump sum life insurance payout. My question asks if this money is considered an "asset" or "income". The course I look at it, it is an ASSET.
Here is my problem. I am on disability. Now I have already checked with the Social Security Administration and they told me my time insurance payout will not affect my disability check. However, I also am on Food Stamps and something called Section 8, which is a Housing Subsidy Program, where the administration pays a portion of your rent, based on your income. I also am on Medicare and Medicaid. Now all of these things say-so to 'report any INCOME immediately' as it will affect the amount of benefit you receive. I haven't asked the Food Stamp people yet or the Housing Subsidy Organization until I assemble more information. They may regard a life insurance payout as "income", I don't know. But I don't see how you could look upon it as income. The instrument I define income is a recurring regular paycheck, take-home pay, or money. Life Insurance is not like that. It is an asset. So if you want a strict interpretation, I see a life insurance payout coming to me as an asset and not income and call for not be reported. What do you think? People who have ever be in this boat before are most provoked to reply, or people who have a deeply good knowledge of time insurance and how it relates to various state and government entitlement programs such as those I hold mentioned. Also, I am wondering if there are any legal loopholes to know how to take this money and not have it affect the other things I am unloading. It has me concerned, as I obviously don't want to draw from into any trouble, nor do I want to do anything foolish either. I am just looking for familiarity on the subject. Thanks.
Answers:
Wow,the rules must have changed.I received a energy insurance payout and I had to pay it wager on to SSI/D.They(SS) took some money out of my checks every month till it was all rewarded back.I tried to fight it axiom it wasn't income as it was a one time pay due to a disappearance.But they said I still had to pay it stern.Good luck :))
I'm not sure, but I believe if the government get wind of the fact you enjoy $20,000 while they're supporting you, they might make some adjustments contained by the amount you normally receive. Without letting them know who you are, I would call Social Security and find out where on earth you can get that information. Sometimes you might have to homily to more than one person to get the correct answer, but be diligent. Also, have a chat to a professional tax preparer. They should also know the answer.

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Neither SSDI nor Medicare will be affected by the payout. Medicaid, food stamps and section 8 are adjectives based on both income and assets and the payout may effect these programs. It will depend on your state regulations. Source(s): Independent Agent
A life insurance payment is not typically considered income. If it is a vivacity insurance payment from your own life insurance policy, it can be considered income (accelerated benefit surrounded by the event of terminal illness). As long as this is someone else's insurance that you are a beneficiary of, it is not income.
It will be considered an asset, what ever part of it you still have, when you own to do your next application for food stamps / medicaid etc.
I believe each state have a maximum level of asset that you can have to still qualify for the programs. It is something resembling $2K or $3K.
Some states let you own a vehicle up to a certain convenience without affecting your benefits.
Basically you can spend most of it and not effect your benefits, but if you keep it you probably lose medicaid & food stamps for a while (the benefits are provided because you own no income. Each state is different, so you will need to ask your case worker what the rules are for your state.


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