Medicare/medicaid Question

[MYOWNCO]

Hello everyone,
How does Medicare/Medicaid look at a final expense policy? Does it threaten a senior losing Medicare because they look at it as an "asset?" How do you overcome that objection (or is it even applicable).
Please advise FE experts.
Thank you pros in advance.

 

[JimmyUt]

Hello everyone,
How does Medicare/Medicaid look at a final expense policy? Does it threaten a senior losing Medicare because they look at it as an "asset?" How do you overcome that objection (or is it even applicable).
Please advise FE experts.
Thank you pros in advance.

If the policy has cash value it very well can be and is considered an asset, at least based on my experience. This can easily be avoided if need be by having someone other than the insured own the policy.

 

[Newby]

Hello everyone,
How does Medicare/Medicaid look at a final expense policy? Does it threaten a senior losing Medicare because they look at it as an "asset?" How do you overcome that objection (or is it even applicable).
Please advise FE experts.
Thank you pros in advance.

Don't confuse Medicare and Medicaid.

Medicare= health insurance plan that all working Americans paid into and will all get if they reach age 65. Doesn't affect your life insurance or other assets at all.

Medicaid= funds healthcare and long term care (nursing home) of he truly impoverished. They aren't allowed to have but minimal assets when qualified for Medicaid. The cash value of life insurance is a countable asset.

Once someone is on Medicaid, it's too late to plan around it. Their child could own a policy on them. But they can not change an existing policy over to their child unless they do it 5-years before qualifying for Medicaid.

They can transfer ownership to a funeral home but the funeral home must be the sole beneficiary with any balance going to their estate which will go to Medicaid.

They could 1035 exchange it into a funeral trust but they usually lose a lot of the death benefit when doing that.

You could sell them Settlers Life policies from the beginning. Settlers has an Estate Planning Trust included at no cost which exempts the policy after 5 years.

They can pay monthly on their funeral with a Preneed policy at a funeral home. This is usually what the Medicaid office will tell hem to do.