Female 94 Trying to Meet Medicaid Rules

[pdoyle]

The family is placing the 94 year old woman into a nursing home. Medicaid says she has $20,000 too much cash on hand. Being told she may purchase life insurance with that money to create an insured value – instead of spending it down. Also, she had a stroke in September 2015.
Can't buy an annuity. Is there an "annuity like" Guaranteed issue SPWL product out there for this specific purpose? We'll take a 20k benefit for 20k premium.

 

[pfg1]

Life insurance if it has any cash value is counted as a spend down asset (down to a min amount of cash). I "think" you may be able to purchase some final expense life insurance in some states, but not 100% sure how that works, and what the limits, rules, etc. might be.

I would contact an estate planning attorney in your state, so you get valid accurate info for your client as to what your best options might be.

 

[Newby]

The family is placing the 94 year old woman into a nursing home. Medicaid says she has $20,000 too much cash on hand. Being told she may purchase life insurance with that money to create an insured value – instead of spending it down. Also, she had a stroke in September 2015. Can't buy an annuity. Is there an "annuity like" Guaranteed issue SPWL product out there for this specific purpose? We'll take a 20k benefit for 20k premium.

They can go to any funeral home. Buy a PreNeed funeral policy with a single premium. No health questions at all. It does have cash value but if irrevocably assigned to the funeral home has a 1st day exemption for Medicaid.

You could also do it yourself with a funeral trust policy from NGL, ForeThought, etc. but at that age your commission would be nothing.

In some states she could spend the excess on a policy within a funeral trust for a family member. On that part Settlers Life would work fine.

 

[pdoyle]

Just got off the phone with ForeThought.... They have exactly what we are looking for! Issues through age 99! Thanks for the info Newby!

 

[pfg1]

Good info!
Is that allowed in all states?

 

[pdoyle]

Not sure about all states. Issued through age 99. Trust Guard.
Call Korey (812) 933-6387...

 

[Newby]

Good info! Is that allowed in all states?

Maybe not in New York.