Life insurance is a resource if:
You own it; and
It has a cash surrender value.
For example, burial insurance and most kinds of term insurance have no cash surrender value. These are not resources.
Life insurance that has a cash surrender value and is owned by you (or your spouse) is excluded from countable resources if the total face value of all policies you own on any one person is not more than $1,500. However, if the total face value of such insurance is more than $1,500, then the total cash surrender value of the insurance counts as a resource, unless it is designated as funds set aside for burial. (See §2161.)