<p>This IS an old thread. If the money idiom the life insurance payout is IN a bank account the day the student files their FAFSA, it is counted as an asset like ANY other money that is IN a bank account.</p>
<p>So Irene Joy…if you got a life insurance check, and it’s in your bank account when you file the FAFSA, you MUST include that money in the bank account total. You can’t just subtract that amount from your account balance.</p>
<p>Simply put…if you receive $100,000 in a life insurance settlement, and you have that $100,000 in your bank account the day you file your FAFSA, you MUST include that amount as an asset.</p>