Medical Assistance and a UL or ??

[inreverse]

If the total face value of the life insurance policies exceeds $1,500, the cash surrender value must be verified and will be counted toward the burial fund exclusion described below or counted toward the $3,000 asset standard.
8. Burial funds.
a. "Burial funds" are defined as funeral arrangements and services that include transportation of the body, embalming, cremation, funeral or memorial services, flowers, clothing, etc., and are distinguished from burial space items that are used for interment of the decedent's remains.
b. The MA applicant may set aside up to $1,500 in a revocable burial fund for funeral services or mortuary functions for the applicant and/or the applicant's spouse.
C. Burial funds may be liquid or non-liquid assets, including bank accounts, contracts, cash surrender value of life insurance policies, personal or real property, trusts, or any other asset that has value, and must be identifiable from other excluded and non-excluded funds.

 

[Newby]

It's only a countable asset if the total cash value exceeds $1500. Up to that amount is not countable.

Since Medicaid is a state thing, this might vary by state, but I believe this to be the standard among most.

It's easy enough to look up the rules for your state.

ANY cash in a life policy is part of their total assets they are allowed to have. Usually $2,000 total.

The allowance of a small "burial policy" usually less than $3,000 in most states still counts against them if there is cash built up in the policy. It's very dated amounts in the states I'm in (Indiana and KY)

But in reality, their case worker can make all kinds of exceptions to the rules. Any of this is only a problem if the caseworker makes it a problem. I've seen all kinds of inconsistent craziness in Kentucky.

 

[inreverse]

In MN they can have up to $1500 in cash value in a policy set aside in their revocable burial fund. Irrevocable is limited only by the contracted amount with the funeral home.

 

[Todd King]

That is in effect but that has nothing to do with this conversation.

I gave you a link above for the subject matter. Chose to continue to ignore it if you want.

I hope you are not giving that wrong info to your downline agents.

I didn't see that link, but even on there it states...

"So if you have a $1,000 policy with cash value of $800, you can keep it and it will not count towards your $2,000/$101,540 limit."

It states the same thing on the actual KY Medicaid website. I don't see how you can still dispute it. Pretty black and white to me.