Medicaid?

[Life Hawk]

@Travis Price , don't mean to paint with as broad a brush as I did, but the full force of the above situation cannot be imagined until you see a family crying around the body of a loved one who hasn't planned for the cost, because they listened to someone they shouldn't have. Government employee, friend or family member.

 

[Travis Price]

@Travis Price , don't mean to paint with as broad a brush as I did, but the full force of the above situation cannot be imagined until you see a family crying around the body of a loved one who hasn't planned for the cost, because they listened to someone they shouldn't have. Government employee, friend or family member.

I'm not arguing your point.. because your right... People get bad advice.

Not even saying that a Gov employee is infallible, because like in every industry there are degrees competence.

Working with people on Medicaid is a bit like playing telephone. You tell something to the client, they communicate a complex Medicaid topic (being completely unaware of what they're saying at times) to the Government. The government gives a response in government speak (which is enough to create misunderstanding) which is more like CYA speak. The client comes back suspicious (because they're already afraid of being ripped off, now they might lose Medicaid too.)

And you lose the sale.

I don't know if you guys are doing F2F or Telesales at this point.. However, knowing working with Medicaid can be a PITA (and it totally can) for communication, consider setting up a document of the most common questions that people ask Medicaid for life insurance.

Number 1) If my cousin buys a life insurance policy on me, will it effect my Medicaid?

We know the answer, but I promise most people are asking:

Will it mess up my Medicaid if I sign up for life insurance?

You want to make sure your document is sent out or taken to your appointments when they want to talk to their Social Worker.

"Hey, I get you want to talk to your social worker. I prepped a document for my clients with Medicaid to get their questions answered, can I send it to you before you schedule your appointment?"

Yes, it takes longer. However, it'll definitely build trust and reduce misinformation/miscommunication, imo.

 

[Lawsonhj1]

You're absolutely correct. But I've run into more than my share of clueless eligibility workers who think the entire face amount counts as an asset. I've had to get on the phone with Social Services many times to explain it. They haven't always believed me, so I usually encourage them to check with their superiors to see if I'm right. I've never lost that argument! To be fair, I haven't had one of those conversations in quite a while. So they must be training them a little better nowadays (at least in my area).

A peeve of mine in funeral business is how quick people are given bad advice in Medicaid funeral spend down situations. In hospice or extremely near need situations with imminent death projected within days, weeks or months I have seen social workers tell people to cash out a policy and funeral directors and preneed counselors the same thing out of ignorance. Then the families buy a preneed and lose perhaps thousands. Sometimes no other options when trying to qualify for public assistance long term care but if a family member can buy the cash value policy at fair market value (add buck fair market to me) they would normally be better keeping original policy in place and then using the cash value amount to purchase an irrevocable preneed or preneed cash advance type funeral to use any excess funds.

 

[Life Hawk]

Will it mess up my Medicaid if I sign up for life insurance?

Agree on that. Often its how you ask a question not so much the question itself. That's sales in a nut shell to be honest.

I guess I'm not the guy that just hates missing a sale now and then (), it's knowing what hasn't been taken care of.

I feel like my peeps deserve more. And I'm not afraid to call my most smelly, unkept, uneducated client a friend. It's me, and its why I love what I do.

I'm no angel, and am just as human as my clients...

See you've talked me off the ledge.

 

[DonP]

Unfortunately there's very little loyalty in the clients we deal with overall . Most forget you the sec you walk out the door . We deal with mostly Lazy people who've hardly worked in their life and they've gamed the system their whole life . Walked in a clients house to sell a few more policy's last week and they were filling out the Medicaid forms for a man

 

[WinoBlues]

2nd have someone else owner / payor if they won't listen to you on the cash value. Another option is two smaller policies one she can spend down or transfer if needed. Most FE policies really suck at accumulation anyway.
I like getting other family members involved so I can write them as well.

Or Next.

 

[DayTimer]

That's not true.. the Counselor gave correct information.

Correct but woefully incomplete and thus ... inaccurate information. Up to $2000 in cash value will not affect medicaid ... now, how long will it take an FE policy to accumulate $2000 in cash value? She can have a $100K death benefit, but so long as the accumulated cash value is < $2K she is fine.

Sell a death benefit $2K higher than the insured feels is necessary, and tell her that if she lives long enough to accumulate that $2000, take it out go to Disney or give it to her beneficiary.

 

[WinoBlues]

Correct but woefully incompltete and thus ... inaccurate information. Up to $2000 in cash value will not affect medicaid ... now, how long will it take an FE policy to accumulate $2000 in cash value? She can have a $100K death benefit, but so long as the accumulated cash value is < $2K she is fine.

Sell a death benefit $2K higher than the insured feels is necessary, and tell her that if she lives long enough to accumulate that $2000, take it out go to Disney or give it to her beneficiary.

Everyone wants to be an agent until it is time to do agent shit.

Wait, Ah, never mind that's gangster....

 

[Travis Price]

Correct but woefully incompltete and thus ... inaccurate information. Up to $2000 in cash value will not affect medicaid ... now, how long will it take an FE policy to accumulate $2000 in cash value? She can have a $100K death benefit, but so long as the accumulated cash value is < $2K she is fine.

Sell a death benefit $2K higher than the insured feels is necessary, and tell her that if she lives long enough to accumulate that $2000, take it out go to Disney or give it to her beneficiary.

I would say a few things:

The time frame is kind of irrelevant. If the client is on Medicaid now, she's likely to be on Medicaid 10 years from now.

She wouldn't lose her Medicaid immediately, but there is a solid chance she'd lose it. Without spenddown.

Does a whole life insurance policy affect my Medicaid? It may... Which was the answer the Op says the Counselor said. It's accurate.

Look... I'm not saying Government workers are perfect. But it's easy to shit on someone else when you have no clue of the discussion between a counselor or a client.

Most of low income people aren't super savvy in asking the questions they want answered in the right way.

JS

PS: I'll admit I take it a little personally because I actually live on the other side of this argument. So I know the types of questions claimants ask. I also know they general outline of the response they'll get.

Government is really about CYA and their job isn't to advise on insurance products.

If a disability client asked me if a cash value life insurance could hurt their DI claim, my response would be if the cash value exceeds the Income and Resources limitations, your benefits would be terminated.

I can't advise them on how long that takes, because I don't know their cash accumulation schedule (and I'm an insurance agent) and frankly that's not my job.

 

[DayTimer]

I don't know their cash accumulation schedule (and I'm an insurance agent) and frankly that's not my job.

I'd disagree with you there par'ner. I can't come up with a reason that wouldn't be my job. But I am face to face and you are over the phone. So it is easier for me to do my job because all I need is for ms Mary to go grab her policy and I could take a look at the cash alue tables, whereas you'd have to convince her not only to go get it, but then coach her in how the policy herself to find the correct cash values.