FE and Medi-Cal

[PhxSunsFan]

aig $15,000 policy.. insured is in nursing home.. full medi-cal... was told from the facility that this face amount would disqualify her.. or will down the road? etc.. thoughts??? thanks she is 61. didnt enroll yet

 

[Todd King]

aig $15,000 policy.. insured is in nursing home.. full medi-cal... was told from the facility that this face amount would disqualify her.. or will down the road? etc.. thoughts??? thanks she is 61. didnt enroll yet

You'll have to check the rules in CA, but in many states it is about the cash value in the policy, not the face amount.

 

[theinsuranceman]

aig $15,000 policy.. insured is in nursing home.. full medi-cal... was told from the facility that this face amount would disqualify her.. or will down the road? etc.. thoughts??? thanks she is 61. didnt enroll yet

The facility said it would disqualify down the road because the cash value will do that down the road. So the facility was telling you the truth.

Make someone else (who's not in the nursing home) the owner of the policy. Son, daughter, etc. That'll take care of the situation in all the states for the life of the insured (or owner).

 

[inreverse]

The facility said it would disqualify down the road because the cash value will do that down the road. So the facility was telling you the truth.

Make someone else (who's not in the nursing home) the owner of the policy. Son, daughter, etc. That'll take care of the situation in all the states for the life of the insured (or owner).

 

[inreverse]

Depending on the lookback period, that can allow the state to claw back assets. Transfering a policy with cash value is transferring assets

 

[shonceman]

Depending on the lookback period, that can allow the state to claw back assets. Transfering a policy with cash value is transferring assets

But in this case it wouldn't be a transfer. The op said she had not yet enrolled. So if a family member owns it from the git-go, there will never be a problem.

 

[HoosierLife]

Just cancel it every 2 years.

 

[PhxSunsFan]

assuming if the benef is the owner... can the insured make the payments?

 

[HoosierLife]

You have 4 parties/roles in a life insurance contract.

Owner
Insured
Payor
Beneficiary

Usually, the owner, insured, and payor are the same person. But not always.

Anyone, within the company's guidelines of insurable interest, can occupy any of those roles.

In this situation, the insured would just be the insured and payor. The beneficiary would be beneficiary and owner.

 

[Lawsonhj1]

Which final expense carriers offer a free funeral trust to make it irrevocable and eligible for Medi -Cal or Medicaid as $15,000 is the limit in some states? Preneed insurance always has that option.