Medical or Medicare & Life Ins

[TDFnCali]

CONFUSED!!

I thought I knew the law or rule was on the relationship between these 2 in regards to 1 having a LI policy and on medical/medicare.

But apparently I dont, and Im not even sure if a LI policy affects medical (Ca residents only) or Medicare or both?

If a senior has a whole life policy to cover FE say for $10k, can Medical/Medicare seize that to pay back any benefits received? Is there ANY scenario where the family would not receive the benefits? And if yes, what is the exact rule on that?

Thx in advance!

 

[coloradoseniormarket]

Cash value in a life policy will have an effect on eligibility for Medicaid and other forms of financial assistance. Those thresholds will vary from State to State. The death benefit has no effect to my knowledge as it pays only upon death. The other riders for premature distribution may play into this but for most case eligibility would have already been determined. Transfer or gifts of assets to become eligible for Medicaid to pay for nursing home benefits has a look back period of 5 years. LI does not have an effect on Medicare.

 

[TDFnCali]

Cash value in a life policy will have an effect on eligibility for Medicaid and other forms of financial assistance. Those thresholds will vary from State to State. The death benefit has no effect to my knowledge as it pays only upon death. The other riders for premature distribution may play into this but for most case eligibility would have already been determined. Transfer or gifts of assets to become eligible for Medicaid to pay for nursing home benefits has a look back period of 5 years. LI does not have an effect on Medicare.

But how much cash value will affect it? And what would happen if they have say $5000 CV but dont use it?

 

[jdeasy]

But how much cash value will affect it? And what would happen if they have say $5000 CV but dont use it?

The cash value in a whole life policy is a countable asset for medicaid. it has no effect whatsoever on medicare.

 

[TDFnCali]

The cash value in a whole life policy is a countable asset for medicaid. it has no effect whatsoever on medicare.

Wait medicaid & medicare are different? So if someone is on Medicaid & have a LI policy, what happens? Do they lose their medicaid benefits? Does medicaid have rights to any proceeds after deceased? What effects does it have on the client? Or if there's some link that will explain it all to me, can u post it?

Thx

PS- I have a client that cancelled because she thinks she cant have a policy and another who cancelled a previous policy (Not mines) because of the medicaid issue and now doesnt wanna meet cause of this.

 

[hammerken]

Medicaid (MediCal in CA) and Medicare are two different programs. Entirely different set of eligiblity requirements. That being said you will find many who are eligible for both. Cash Value in a LI Policy will affect Medicaid eligibility. Since it is administered by the states the eligiblity guidelines do vary.

 

[Newby]

In most states $2,000 in countable assets is the limit. They will count money in the bank as well as the cash value of life insurance policies.

They can cash surrender it or assign the ownership AND beneficiary over to a funeral home to make it exempt.

 

[Cornelius]

This site may give you some help>

CPLTC Agent Tools and Resources

 

[coloradoseniormarket]

LI cash value will affect almost any public assistance program. Look at the cash value accumulations of some of the policies for FE they accumulate pretty slowly. Eligibility people will tell those going through the process to take out some of the cash and spend it - I would rather have them APL for a while and manage the policies that way if possible.

 

[tomoverton0123]

CONFUSED!!

I thought I knew the law or rule was on the relationship between these 2 in regards to 1 having a LI policy and on medical/medicare.

But apparently I dont, and Im not even sure if a LI policy affects medical (Ca residents only) or Medicare or both?

If a senior has a whole life policy to cover FE say for $10k, can Medical/Medicare seize that to pay back any benefits received? Is there ANY scenario where the family would not receive the benefits? And if yes, what is the exact rule on that?

Thx in advance!

Yes cash value can affect eligibility for Medicaid, not Medicare. Some states have different rules so check with your state. If the CV does affect it then you can change ownership or irrevocably assign it someone or a funeral home.