Prospects on Medicaid
- Thread starter Raider123
- Start date
- 17,146
Sell them a funeral trust policy through Settlers or sell them any policy with their child as the policy owner.
- 19,853
- 11,997
"Sign here and here and here".
I prefer "Press hard, there are three copies".
You can do a WL policy with little to no cash value (not saying with whom though 
.
Staying away from cash value policies is key for individuals with Medicaid. Since the cash value is seen as an asset, it could drastically effect their benefits.
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Indiana Insurance
. Staying away from cash value policies is key for individuals with Medicaid. Since the cash value is seen as an asset, it could drastically effect their benefits.
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Indiana Insurance
Last edited:
- 19,853
You can do a WL policy with little to no cash value (not saying with whom though
Staying away from cash value policies is key for individuals with Medicaid. Since the cash value is seen as an asset, it could drastically effect their benefits.
------------------------------------------
Indiana Insurance
Kinda, the cv is a countable asset. Most of these low face policies are going to take years to have amount that would cause an issue.
You can always have someone else be the owner and then it's no issue at all or do a funeral trust or assignment.
- 17,146
You can do a WL policy with little to no cash value (not saying with whom though
Staying away from cash value policies is key for individuals with Medicaid. Since the cash value is seen as an asset, it could drastically effect their benefits.
------------------------------------------
Indiana Insurance
All whole life policies have the cash value grow to be equal to the face amount on the endowment date (either age 100 or 121). It's the definition of whole life.
Any whole-life policy will become a problem for someone on Medicaid eventually. Sooner than you think. If the limit allied is $2,000, that doesn't mean the policy cash value has to reach $2,000 to be a problem. It means TOTAL of all countable assets. Sometimes they have two cars worth $1,000 each (the 2nd car counts against them) or $1,500 in a savings account (their life's savings) or other countable assets and when the policy accumulates a few hundred their Medicaid caseworker tells them " you have until the end of the month to get rid of assets or you lose your Medicaid.
This is not uncommon. When you work in funeral homes, around 1/3 your appointments involve helping people not lose their Medicaid.
I'm surprised that more final expense companies don't have funeral trusts. Only Settlers and one other that I know of. Settlers/NGL changed theirs last month to state that the customer had to agree that many states won't accept the funeral trust as exempt unless they take it to a funeral home and have a funeral director sign off on it and provide a legal goods and services page. That probably indicates there have been a lot of legal troubles with it.
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