Life Insurance for Somebody Wanting to Apply to Medicaid

[RookieYankee]

I have two prospects trying to sign up with Medicaid because the wife is in a wheelchair and needing oxygen for her COPD. Gerber is the best option I believe since she needs the oxygen. The wheelchair is expected to be temporary and Transamerica's graded policy is too expensive to them. They were worried that they wouldn't be approved for Medicaid and I told them that if they made their children or the spouse the owner, then Medicaid would have no issue with that. Does anybody have any idea on this? I learned this was okay from speaking to some local elder lawyers.

 

[Newby]

First you don't want to sell Transamerica graded policy to anybody. Sell them Gerber. Or something with a decent price and near GI.

If there is a different owner from the very first day the policies issued it won't be considered their asset because they never owned it.

If they own it for any amount of time and then give it to their kids then Medicaid will have a problem with it. Because there's a five-year look back for giving away your assets. They can only give it to a funeral home with no look back.

 

[RookieYankee]

First you don't want to sell Transamerica graded policy to anybody. Sell them Gerber. Or something with a decent price and near GI.

If there is a different owner from the very first day the policies issued it won't be considered their asset because they never owned it.

If they own it for any amount of time and then give it to their kids then Medicaid will have a problem with it. Because there's a five-year look back for giving away your assets. They can only give it to a funeral home with no look back.

Thanks, Newby. That's exactly what I told them. They asked me to return because they needed to double check with their case worker (or whoever their representative is at the medicaid offices) I'm thinking of finding some type of flier that can show people that theu can do this so if I get this again I just pull out the flier.

 

[Newby]

Thanks, Newby. That's exactly what I told them. They asked me to return because they needed to double check with their case worker (or whoever their representative is at the medicaid offices) I'm thinking of finding some type of flier that can show people that theu can do this so if I get this again I just pull out the flier.

You can find flyers that tell about funeral trusts or assigning policies to funeral homes for Medicaid exemption. You will not find any about Mom never being an owner. It's just the way it is.

If Mom's on Medicaid and her son owns a million dollar collection of Elvis socks it doesn't affect her Medicaid at all. But if she gave or sold for less than full value the collection to him within the past 5-years it will definitely affect her Medicaid.

Same with life insurance. If she never had any ownership of the policy it doesn't affect her. The fact that the benefit is triggered by her death is not an issue. Only ownership matters. It's son's property not hers.

 

[Independent-Agent]

Thanks, Newby. That's exactly what I told them. They asked me to return because they needed to double check with their case worker (or whoever their representative is at the medicaid offices) I'm thinking of finding some type of flier that can show people that theu can do this so if I get this again I just pull out the flier.

If you know something to be true, and it sounded like you did, be confident with the prospect.

One of the greatest skills we can have is to be the expert when it comes to all things insurance related, Rx and and even health conditions. This will help you gain trust and build credibility.

I had to sell a Gerber policy yesterday under similar circumstances. She was on Medicaid and had heard that could mess things up. I explained that she was right and explained about assets and CV.

Then I told her a few options, namely making her daughter the owner or assigning to funeral home. Explained why the second is not recommended.

It was a done deal. If you know what you're talking about the prospect will know. These folks want to be lead in the correct direction. They just need to trust that you're the man for the job!

 

[Senior.Benefits]

First you don't want to sell Transamerica graded policy to anybody. Sell them Gerber. Or something with a decent price and near GI.

If there is a different owner from the very first day the policies issued it won't be considered their asset because they never owned it.

If they own it for any amount of time and then give it to their kids then Medicaid will have a problem with it. Because there's a five-year look back for giving away your assets. They can only give it to a funeral home with no look back.

I have looked for some time for a New York Life/AARP style term FE plan that I could sell to Medicaid recipients--as it won't have cash value. All I can find is $100,000 mins that are too expensive for those prospects.

If anyone knows a low-minimum term carrier would love to know it!

Also rookie--I know the FE purists will have a fit but--I would always have a couple of Medicare Advantage carriers handy, including one that has DNSP/CSNP plans so you can write them year round. Often the carrier will send you leads as well. So you can sell Medicare to FE leads and FE to Medicare leads.

 

[jdeasy]

I have looked for some time for a New York Life/AARP style term FE plan that I could sell to Medicaid recipients--as it won't have cash value. All I can find is $100,000 mins that are too expensive for those prospects.

If anyone knows a low-minimum term carrier would love to know it!

Also rookie--I know the FE purists will have a fit but--I would always have a couple of Medicare Advantage carriers handy, including one that has DNSP/CSNP plans so you can write them year round. Often the carrier will send you leads as well. So you can sell Medicare to FE leads and FE to Medicare leads.

No reason to sell term to that group. Just know the rules.

As for selling MA plans, why would any FE agent have a fit about that? It's a natural for the market.

 

[magiced]

A life insurance policy does not affect Medicaid eligibility until it has more than $2,000 in cash value.

Most folks buying FE will never see $2,000 in their cash value in their lifetime.

 

[Gooner]

A life insurance policy does not affect Medicaid eligibility until it has more than $2,000 in cash value. Most folks buying FE will never see $2,000 in their cash value in their lifetime.

Completely wrong and irresponsible advice.

 

[magiced]

Completely wrong and irresponsible advice.

How so?

Are you saying they'll have $2,000 in cash value in just a few years or that Medicaid looks at something other than cash value?