Life insurance and section 8/ car accident slip n fall insurance awards

My question is if you are on section 8 and want to purchase a small life insurance policy, why do they want to know. secondly if its term (which DOESN'T build cash value and you CAN'T borrow from) will it still affect your section 8 or SSI and if its whole life (which DOES build cash value and you CAN borrow from)does that affect your section 8 and what if you DON'T borrow from it... Another question is now about SSI not SSDI, and section 8, if you get into an car accident or slip and fall accident and are awarded say like 15,000 is that considered a lump-sum and does that have to be reported. I was told lump-sums from insurance or inheritance do not have to be reported to either SSI or Section 8. I know if the inheritance is stocks and you get dividends then its counted because its like income, unless you DON'T take the dividend (money)and put it back in......but just a lump sum I was told doesn't have to be. I would love to get a small policy like $30,000 that will cost me 25-30 dollars a month and Im afraid because I don't know if it will affect my SSI or Section 8..