Disabilty,Medicaid Clients

[noah]

As we know,this group of clients is most often told that they cannot have a "cash value" life insurance policy.

Seems like the best,most efficient way to set up the policy would be to designate someone,perhaps the beneficiary or other responsible person not on disability medicaid as the owner.

During the presentation if the proposed insured brings this up,uses this as an objection,I them that it takes a long time for the cash value to build up.

In Virginia,someone on disability,medicated can have up to $2000 before it's an issue.

In order to close the sale,I simply get the person's contact info,email address,and fax or email a copy of the app for them to sign and become the owner to avoid any objections,future issues with disability,medicaid coordinators.

Is anyone else doing this ?

Having any luck ?

If so are you finding that most of our people have email,fax machines,printers,are tech savvy ?

Is there any better,more efficient way to set up the policy for these types of clients ?

What do you guys do to close the sale if the CV becomes an issue,objection ?

 

[Baseball7]

How long does it take for a $30 a month policy to build $2000 of cash value? Let's worry about it then and see if they even keep it that long before we worry about change of ownership issues.

 

[goillini52]

How long does it take for a $30 a month policy to build $2000 of cash value? Let's worry about it then and see if they even keep it that long before we worry about change of ownership issues.

Good point and I doubt that very many Medicaid FE prospects have a fax machine. An O'bamaphone yes...but not a fax.

 

[Newby]

As we know,this group of clients is most often told that they cannot have a "cash value" life insurance policy. Seems like the best,most efficient way to set up the policy would be to designate someone,perhaps the beneficiary or other responsible person not on disability medicaid as the owner. During the presentation if the proposed insured brings this up,uses this as an objection,I them that it takes a long time for the cash value to build up. In Virginia,someone on disability,medicated can have up to $2000 before it's an issue. In order to close the sale,I simply get the person's contact info,email address,and fax or email a copy of the app for them to sign and become the owner to avoid any objections,future issues with disability,medicaid coordinators. Is anyone else doing this ? Having any luck ? If so are you finding that most of our people have email,fax machines,printers,are tech savvy ? Is there any better,more efficient way to set up the policy for these types of clients ? What do you guys do to close the sale if the CV becomes an issue,objection ?

Isn't Settlers one of your main companies? Just use their Funeral Trust and problem solved.

If if not that and they are only buying enough to cover funeral expenses just wait until becomes a problem when I have them assign it to the funeral home and it's no problem at all.

If they are buying a larger policy and planning to leave money to their beneficiary you can either use the Settlers estate planning trust. Or if Settlers doesn't work for the case then you can write any company with a different owner which does become a hassle because the owner is never there at the appointment.

 

[shonceman]

When I was in Virginia, once or twice I wrote an old Huff-Cook burial policy. That was a long time ago, though. Do they still have those available? In Texas, I can write a stipulated premium policy, which is essentially a no cash value Whole Life policy.

 

[noah]

Isn't Settlers one of your main companies? Just use their Funeral Trust and problem solved.

If if not that and they are only buying enough to cover funeral expenses just wait until becomes a problem when I have them assign it to the funeral home and it's no problem at all.

If they are buying a larger policy and planning to leave money to their beneficiary you can either use the Settlers estate planning trust. Or if Settlers doesn't work for the case then you can write any company with a different owner which does become a hassle because the owner is never there at the appointment.

Let's not get off track here,off course I understand Settlers funeral trust.

Let's talk about what guys do when the situation described occurs and as it pertains to any carrier.

How do you have your crew trained when this comes up during a presentation ?

Do you attempt to identify an alternate owner ?

Do you attempt to get the contact info from the proposed insured then get in contact to obtain their signature,make them the owner prior to submitting the app,placing the policy ?

I mean everybody has email,scanners,fax machines,right ? And if they don't you could easily get their signature via U.S. Mail.

Simple,right ?


Doesn't this best fit the needs of the client rather than causing him/her trouble,confusion with medicaid in the future ?

 

[Baseball7]

This has come up twice in the last year. Explained to the lady the $3000 limit and she understood it. Ran into a lady taking a loan to lower her cash value in this situation and we simply utilized her RPU option remove the cash value from a concern and got her a better rate anyway.

 

[jdeasy]

This has come up twice in the last year. Explained to the lady the $3000 limit and she understood it. Ran into a lady taking a loan to lower her cash value in this situation and we simply utilized her RPU option remove the cash value from a concern and got her a better rate anyway.

Whatever the limit is in your state it's not just the cash value in a life policy. It's the total of their "countable" assets. The cash value is one of those things. Money in a checking account or savings account is another. The non penalty withdrawals available in an annuity.

Most of the Medicaid or extra help people won't have any countable assets other than the cash value but they could have.

It's rarely an issue but an agent must know how to deal with it when it does come up.

 

[Newby]

Let's not get off track here,off course I understand Settlers funeral trust. Let's talk about what guys do when the situation described occurs and as it pertains to any carrier. How do you have your crew trained when this comes up during a presentation ? Do you attempt to identify an alternate owner ? Do you attempt to get the contact info from the proposed insured then get in contact to obtain their signature,make them the owner prior to submitting the app,placing the policy ? I mean everybody has email,scanners,fax machines,right ? And if they don't you could easily get their signature via U.S. Mail. Simple,right ? Doesn't this best fit the needs of the client rather than causing him/her trouble,confusion with medicaid in the future ?

1. If it's just enough for a funeral they will never have a problem. When the cash builds up, just assign it to their funeral home.

2. If it's more than that, pull cash out of the policy when it builds up and spend on personal items (furniture, clothes, home repairs, etc. )

3. If it's not inconvenient to make someone else the owner at the time they purchase the policy, do that.

It's really not to big of an issue.

 

[rousemark]

When I was in Virginia, once or twice I wrote an old Huff-Cook burial policy. That was a long time ago, though. Do they still have those available? In Texas, I can write a stipulated premium policy, which is essentially a no cash value Whole Life policy.

No, they don't have the Huff-Cook plans any more. They were pretty go for the problem being discussed... Had RPU or ExTerm for non forfeiture values but no cash value option.