FE and Medi-Cal

[WinoBlues]

That CAN work sometimes but is not a clean way to do it. If the policy has been owned by the person on Medicaid any time within the previous 5-years it can cause a problem.

The cleaner way is to just assign it to a funeral home after issue. That way is is exempt from Medicaid with no lookback waiting period.

Hey Newby, is there a Fraternal rule against funeral homes owning or being irrevocable beneficiary?

 

[rousemark]

That CAN work sometimes but is not a clean way to do it. If the policy has been owned by the person on Medicaid any time within the previous 5-years it can cause a problem.

The cleaner way is to just assign it to a funeral home after issue. That way is is exempt from Medicaid with no lookback waiting period.

True.. But a FE policy that is only 5 years or less old is not going to have enough cash value to create a problem.

 

[rousemark]

Hey Newby, is there a Fraternal rule against funeral homes owning or being irrevocable beneficiary?

Don't know about a fraternal rule but there is an insurance regulation prohibiting it in Tennessee.

 

[Newby]

Hey Newby, is there a Fraternal rule against funeral homes owning or being irrevocable beneficiary?

No. Each company is individual. The only company that I remember having a huge issue with on that was Old American. I don't think they are fraternal. They actually put their insureds in a position where they were forced to cash surrender their policies to qualify for Medicaid. They would not allow assignment to a funeral home at all. That is great for their profits but horrible for their insureds that are nearing the end of their life.