Social security office cancelled my ssi because my life insurance policy

It is important to note that Supplemental Security Income (SSI) is a needs-based program administered by the Social Security Administration (SSA) for people with limited income and resources. If you receive SSI benefits and have a life insurance policy, it may affect your eligibility for SSI benefits. In general, owning a life insurance policy does not automatically disqualify you from receiving SSI benefits. However, the SSA may consider the cash value of your life insurance policy as a resource that could affect your eligibility for SSI benefits. If the cash value of your policy, when combined with your other resources, exceeds the SSI resource limit, then your SSI benefits may be reduced or cancelled. It is recommended that you inform the SSA of any changes in your resources, including the purchase of a life insurance policy, to ensure that your SSI benefits are accurately calculated. If your SSI benefits are cancelled due to a change in your resources, including a life insurance policy, you may be able to request a reconsideration of the decision or file an appeal. In terms of withholding taxes, surrendering or cancelling a life insurance policy may result in taxable income, depending on the circumstances. For example, if you receive more than the total premiums paid on the policy, the excess amount may be subject to income tax. It is recommended that you consult with a tax professional or financial advisor to determine if withholding taxes is necessary in your specific situation.