Medicaid Compliant Immediate Annuities - Who Issues Them?
- Thread starter
- #3
- 10,708
Medicaid compliant annuities are spias, or annuitized FAs.
It speaks to the "spend down" of assets required by medicaid.
When one spouse needs care and the other doesnt, they split assets and the one needing care must spend down their half of the assets.
Obviously this could possibly put a financial strain on the healthy spouse.
So to ensure that the healthy spouse is able to have sufficient income; the "unhealthy" one may purchase an Immediate Annuity for the healthy spouse.
There are plenty of spias that are compliant... I think LFGs is (I might be wrong).
There are also FAs that are compliant once annuitized (not a bad reason to have two separately owned FAs with the opposite spouse as the Annuitant)
Basically the state will set requirements that the product has to meet to be considered compliant.
Call the internal sales desk at your favorite spia carrier (or FA carrier); if theirs is not, keep going down your list. But the internal desk will know.
This can be a great selling point.
This is also very state specific!!!!!!!!!!!!!
It speaks to the "spend down" of assets required by medicaid.
When one spouse needs care and the other doesnt, they split assets and the one needing care must spend down their half of the assets.
Obviously this could possibly put a financial strain on the healthy spouse.
So to ensure that the healthy spouse is able to have sufficient income; the "unhealthy" one may purchase an Immediate Annuity for the healthy spouse.
There are plenty of spias that are compliant... I think LFGs is (I might be wrong).
There are also FAs that are compliant once annuitized (not a bad reason to have two separately owned FAs with the opposite spouse as the Annuitant)
Basically the state will set requirements that the product has to meet to be considered compliant.
Call the internal sales desk at your favorite spia carrier (or FA carrier); if theirs is not, keep going down your list. But the internal desk will know.
This can be a great selling point.
This is also very state specific!!!!!!!!!!!!!
With Phoenix you have the Family Shield, which is the Medicaid SPIA. And then you have the Legacy Shield, which is the new Medicaid SPWL policy that's guaranteed issue with no underwriting. There's only a few of us with the contracts, if you want information give me a call.
There is.
Which is why I posted my question . . . that was never answered.
Transferring of Assets for Medicaid Look-Back Periods - Lawyers.com
That's why I said there was no such thing as a "Medicaid Compliant" annuity.
Of course, there still may be something we are not aware of here.
