Medi - Cal and FE Policies?

This was brought up earlier and I can honestly say I've never come across this before....and I don't think the answer I was given was right.

Client has medi-cal. According to my boss since they have medi-cal, ANY life insurance policy that generates income for them (like final expense insurance would) they would lose their health insurance via medi-cal

That means only term.

Is this correct?
 
Or a separate owner, or a Funeral Trust that is Medicaid compliant.

Either of those are much better than a term policy.
 
In CA I think they can have a policy, but no more than $1500 in face amount.

The best thing to do is exactly what VolAgent said. Don't make them the owner of the policy.
 
This was brought up earlier and I can honestly say I've never come across this before....and I don't think the answer I was given was right.

Client has medi-cal. According to my boss since they have medi-cal, ANY life insurance policy that generates income for them (like final expense insurance would) they would lose their health insurance via medi-cal

That means only term.

Is this correct?

I'm pretty sure that's not correct. Ca has some funny rules on many things but I know many FE agents in Ca and they don't have that issue.

The cash value in a life policy is a countable asset in every state. That can affect their eligibility for Medicaid and extra help.

They have to allow $1500 total. Some state allow more. I don't know if Ca is one that allows more.

That $1500 is total countable assets. That's cash, money in a checking or savings account, penalty free withdrawals from an annuity and cash value in a life policy.
 
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