Medicaid and FE

[jemelton]

I have scoured the internet trying to find the rules for those on Medicaid and how much life insurance they can have. I am not having much luck.

I am in Indiana, have a couple with no life insurance in their mid 40s that are on disibility and Medicaid and want life insurance. I have a life policy that will take them but they want to make sure they are allowed to have it.

 

[WinoBlues]

I have scoured the internet trying to find the rules for those on Medicaid and how much life insurance they can have. I am not having much luck.

I am in Indiana, have a couple with no life insurance in their mid 40s that are on disibility and Medicaid and want life insurance. I have a life policy that will take them but they want to make sure they are allowed to have it.

The cash value build up is going to be the issue. Ownership will be key. Not sure in your state but irrevocable Bene could be your answer. Also making someone else as the owner.

Hit up Newby

 

[SportsNut]

Indiana - Asset Test

Maximum of $1,000 in assets. What is counted as an asset? This includes items such as a bank account balance, cash on hand, stocks and bonds, property (other than your family home), equity in a vehicle after $5,000 has been excluded. What does not count as an asset? Your family home, household goods like furniture or appliances, personal items such as jewelry or clothes.

It doesn't specifically mention c/v of life insurance but it is treated the same as any other deposit acct.

Link to IN Medicaid
Link to FSSA

The answer is they need a Funeral Trust for ownership of the policies and the the c/v of the policies are not owned by them personally and consequently create no problem with their income on M'caid. Newby is the resident expert on Funeral Trusts and he will be along shortly to fill in the blanks here.

 

[Rollem]

State specific rules, but generally any policy in which they themselves are not the owner, or one that will not accumulate cash value....dont forget the dental

 

[jdeasy]

State specific rules, but generally any policy in which they themselves are not the owner, or one that will not accumulate cash value....dont forget the dental

That's not really how it workk. The cash value of the life insurance is counted as an asset.

For the op, if you sell them cash value insurance you could have someone else be the owner, {someone not also on medicaid}, or use a trust.

 

[WinoBlues]

That's not really how it workk. The cash value of the life insurance is counted as an asset.

For the op, if you sell them cash value insurance you could have someone else be the owner, {someone not also on medicaid}, or use a trust.

Same for the beneficiary.


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[GreenSky]

Same for the beneficiary.


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You've told me that the safest thing for my clients is to make you the beneficiary. Is that still the best option?

Rick

 

[WinoBlues]

You've told me that the safest thing for my clients is to make you the beneficiary. Is that still the best option?

Rick

Yes, Yes it is.


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