Rookie Title XIX Question

[WGO]

I am a high school teacher that sells mainly term insurance on a part-time basis. I read this forum a lot and hope to get into Final Expense in the future. I did look for the answer to this quetions on the net, but need some more help.
I had a person contact me today and said they had DPOA for an elderly women who was on Medicaid. They wanted to kown if there was any way for her to get life insurance. I asked for more information, but have not heard back yet. I would appreciate any basic information on this area.
Thanks

 

[jdeasy]

If I've ever dealt with a person that was Title XIX I didn't know it.

Seriouly, I suppose you are talking about Medicaid. Being on medicaid will have no bearing on her ability to get life insurance. Medicaid is solely about income so it may have a bearing on her ability to pay for it.

As for cash value life insurance it's a different story. She either needs to have the insurance in a funeral trust, {or do so before it gains cash value}, or have someone else be the owner.

 

[TDFnCali]

If I've ever dealt with a person that was Title XIX I didn't know it.

Seriouly, I suppose you are talking about Medicaid. Being on medicaid will have no bearing on her ability to get life insurance. Medicaid is solely about income so it may have a bearing on her ability to pay for it.

As for cash value life insurance it's a different story. She either needs to have the insurance in a funeral trust, {or do so before it gains cash value}, or have someone else be the owner.

JD, Ive touched on this subject before...and Im still not 100% clear on it.

Do u ask all your clients (if it doesnt come up in the presentation) if they are on medicaid &/or do they think 1 day they might be? And if yes, tell them they need to have another owner (which could kill the sale) so it wont affect their benefits?

This rarely comes up in my presentations, so I never touch on it....how do u approach it? Do u need to bring it up every time & inform them? Just seems that would kill a large % of sales if they have to think "what if..."?

Thanks

 

[Norwayguy]

I don't work the FE market but I wouldn't be asking questions that would lead to killing my sale. If the client is on Medicaid they already know they are and know their assets must be assessed and if your state is like mine they get a form every six months to fill out.

Thier objective is to not leave a burden for their families sell them the policy. Might they some day be on Medicaid, Yes they might...Might the cash value in said policy some day grow enough to cause an issue Yes it might but it will be years down the road while they may be dead tomorrow get them covered.

 

[pcbinsurance]

Great answer Peter...and Go Patriots!

 

[WinoBlues]

I don't work the FE market but I wouldn't be asking questions that would lead to killing my sale. If the client is on Medicaid they already know they are and know their assets must be assessed and if your state is like mine they get a form every six months to fill out.

Thier objective is to not leave a burden for their families sell them the policy. Might they some day be on Medicaid, Yes they might...Might the cash value in said policy some day grow enough to cause an issue Yes it might but it will be years down the road while they may be dead tomorrow get them covered.

Good answer. Also a good reason to call your clients. Fortunately, I guess, most FE policies have crappy CV growth.

Go 9ers!

 

[jdeasy]

JD, Ive touched on this subject before...and Im still not 100% clear on it.

Do u ask all your clients (if it doesnt come up in the presentation) if they are on medicaid &/or do they think 1 day they might be? And if yes, tell them they need to have another owner (which could kill the sale) so it wont affect their benefits?

This rarely comes up in my presentations, so I never touch on it....how do u approach it? Do u need to bring it up every time & inform them? Just seems that would kill a large % of sales if they have to think "what if..."?

Thanks

I do not ask. I only address if it comes up. It's rarely an issue because most of them do not have any assets so the cash value is not going to become a problem.

I do have issues with the clerks at the medicaid offices telling people that they "cannot" have cash value life insurance and sometimes even telling them that can't have life insurance at all.

Most times I am able to get those problems fixed. There is so much mis information out there that it creates excuses for people to continue to not take care of their funeral.

As far as sale killing to inform to have another person be the owner I haven't had that problem. In fact it's just the opposite. Helping them avoid a problem helps me get the sale.

 

[Norwayguy]

I do have issues with the clerks at the medicaid offices telling people that they "cannot" have cash value life insurance and sometimes even telling them that can't have life insurance at all.

Don't you think the above is just criminal...We are talking about friggin government employees working for a dept that works with poor people telling them to leave the burden to their family helping to keep the cycle going.

Sorry I have run into this issue once with a policy once....What got me so mad was the form he handed to the client to show them they could not have the term policy I had sold asked them to list all assets including the cash value of any life insurance policies and this *** took it to mean they couldn't have life insurance.

I asked her what type of qualifications it took to get hired for her job and she explained she had a bachelors degree and social work and so on...I asked her how she managed to get through high school let alone college with her reading comprehension issue. What issue she says...I point to the form and ask where does it say NO life insurance?

It's sad how people can not read a form and understand what is being asked.

 

[jdeasy]

Don't you think the above is just criminal...We are talking about friggin government employees working for a dept that works with poor people telling them to leave the burden to their family helping to keep the cycle going.

Sorry I have run into this issue once with a policy once....What got me so mad was the form he handed to the client to show them they could not have the term policy I had sold asked them to list all assets including the cash value of any life insurance policies and this *** took it to mean they couldn't have life insurance.

I asked her what type of qualifications it took to get hired for her job and she explained she had a bachelors degree and social work and so on...I asked her how she managed to get through high school let alone college with her reading comprehension issue. What issue she says...I point to the form and ask where does it say NO life insurance?

It's sad how people can not read a form and understand what is being asked.

I had a lady at a nursing home this past week argue with me about the regulations. A client of mine is admitted to the nursing home and they are applying for medicaid. It's only a $3000 policy and he has only had it 7 months. She told him he had to cancel that policy in order to apply for medicaid.

I couldn't save that one even after talking to her boss. The client was scared and told me to cancel. I wrote down the conversations and faxed it to the management of the nursing home and to the insurance company.

The guy said he doesn't expect to be there long and will call me to get his policy re-started once out of the nursing home. I'll hold my breath on that one.

 

[Norwayguy]

I had a lady at a nursing home this past week argue with me about the regulations. A client of mine is admitted to the nursing home and they are applying for medicaid. It's only a $3000 policy and he has only had it 7 months. She told him he had to cancel that policy in order to apply for medicaid.

I couldn't save that one even after talking to her boss. The client was scared and told me to cancel. I wrote down the conversations and faxed it to the management of the nursing home and to the insurance company.

The guy said he doesn't expect to be there long and will call me to get his policy re-started once out of the nursing home. I'll hold my breath on that one.

I've had a nursing home tell my client his LTC policy wouldn't pay anything and to just stop paying the premiums (this is while the wife is in their nursing home). I asides if she was unable to perform ADLs the answer was Yes she had a 30 day elimination period I said I disagree with her assement and let's at least submit a claim....Of course the woman changed her tune and it became the coverage wasn't enough to pay the full cost at that point. I looked at my client and just told him to call me before making any changes. I'm not perfect but I am 1-0 compared to this woman, had you followed her advice you and your wifes policy would have lapsed for non payment. With my advice the policy is paying as agreed oh and thier premiums were waived while on claim.