FE and Medicaid Eligibility

[yabadabadoo1026]

I've been oblivious---as I'm sure many others are as well---until just recently that cash value insurance can affect peoples Medicaid eligibility in a bad way. Obviously in general much of our FE market are low income Medicaid recipiants.

What or is anything being mentioned about such when talking insurance to these people--- wouldnt seem right to ignore it not make them aware if they may be among those affected but the mere mention of it would be a deal killer. Whats the best way to deal with it?

 

[bdagent]

My first thought is that if most of your FE clients are on Medicaid, you must not be getting much in the way of renewals. These folks are living on less than 923 a month....
I have been selling FE for 5 years and maintain a respectable persistency. My policy is WALK AWAY!

Second, they would have to build up a couple thousand in cash value to threaten their status, so if you think its actually an issue and you think they can keep it long enough to build that cash value then you should make someone else the owner of the policy. Medicaid does not care if they are insured, just that they dont have an asset.

 

[Newby]

With Medicaid people you have to sell policies that are assigned to an irrevocable funeral trust OR find a funeral home that will allow you to assign irrevocable ownership AND beneficiary to them.
A 3rd alternative is to make their child or someone else the owner of the policy but they have to really trust the person who will be the owner.