Single Premium Whole Life & Medicaid Qualification

[Franz Kafka]

CA _may_ be different. I have gotten many calls from family members saying that the case worker told them to change the ownership before applying. Seems that the look back would get them.

I don't know .. I have talked to several case workers on behalf of others who knew less about their own rules than I did. Here's an excerpt from their own publication and it states that all life policies are exempt from calculating asset for Medicaid qualification (bold letters mine).

SECTION 1931(b) PROGRAM PROPERTY EXEMPTIONS

Exempt home. Property used as a home is exempt. When an applicant or beneficiary is temporarily absent from the home for reasons such as illness, seasonal employment, visits, extreme climatic conditions, etc., the home will remain exempt if the applicant or beneficiary plans and appears to be able to return home when those circumstances no longer exist. This includes multiple dwelling units when the units cannot be sold separately.

Real property listed for sale. Real property that the owner is making a good faith effort to sell shall be considered unavailable for no more than nine months.

Property of certain individuals shall be exempt. The separate and community property share of a stepparent who is not an applicant or beneficiary. The exclusive personal property of a child who does not receive Medi-Cal under the Section 1931(b) program when
eligibility is being determined for the rest of the family under the Section 1931(b) program. Property which is considered in determining the eligibility of an SSI/SSP recipient even when owned separately by the Section 1931(b) program applicant or beneficiary.

Motor Vehicles. Your motor vehicles may be exempt if they are used for:

Self-employment, used on the job (taxi, truck driver, etc.), for income producing purposes even if only seasonally, or for long-distance travel (other than daily commuting) essential for employment (traveling sales, migrant farm worker going from job to job, etc.), even if temporarily unemployed.

Transporting a disabled individual living in the home.

A home (only one may be exempt on this basis).

Transporting the primary supply of fuel/water for the home.
Other motor vehicles will not be counted if the fair market value is under $4,650, or if the equity value is under $1,500.

Income producing property. Personal property that produces any income shall be exempt even if only producing income on a seasonal basis. This includes promissory notes, mortgages, deeds of trust, installment contracts, or agreements. This does not include nonbusiness financial accounts or instruments where cash is available upon demand.

Personal property used in a trade or business.

Household items and personal effects including TVs, VCRs, computers, and jewelry.

Pension funds or pension plans or KEOGHs which involve a contractual relationship with someone who is not living in the home with you and who is not your parent, stepparent, or spouse.

All life insurance policies.

Musical instruments and recreational items including collections, hobbies, guns, etc.

Livestock, poultry, or crops.

Individual items of personal property which would produce funds equal to or less than one-half of your property limit if sold.
Countable property equal to the amount of benefits paid under a state-certified, long-term care insurance policy.

Burial space items, irrevocable burial trusts, or irrevocable prepaid burial contracts.

One revocable burial fund or revocable prepaid burial contract with a value of up to $1,500 per person.

 

[Newby]

I don't know .. I have talked to several case workers on behalf of others who knew less about their own rules than I did. Here's an excerpt from their own publication and it states that all life policies are exempt from calculating asset for Medicaid qualification (bold letters mine).

Wow! Your state is very loose with the requirements. Most don't allow a lot of that.
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Would that include the new GULs that do not illustrate cash values?

In Indiana they can't count anything that has no value today.

Since a Term or some GULs can't be cashed out to get anything they can't count them as an asset.

 

[WinoBlues]

I don't know .. I have talked to several case workers on behalf of others who knew less about their own rules than I did. Here's an excerpt from their own publication and it states that all life policies are exempt from calculating asset for Medicaid qualification (bold letters mine).

I can believe that. Do you have a link for that publication?

Lee
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Wow! Your state is very loose with the requirements. Most don't allow a lot of that.
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In Indiana they can't count anything that has no value today.

Since a Term or some GULs can't be cashed out to get anything they can't count them as an asset.

Not to get the whole GUL is bad as FE thing going. _But_ Wouldn't it make sense then in the not Broke Ass market as a policy?

 

[Franz Kafka]

Do you have a link for that publication?

Search Center - Search

 

[Newby]

I can believe that. Do you have a link for that publication?

Lee
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Not to get the whole GUL is bad as FE thing going. _But_ Wouldn't it make sense then in the not Broke Ass market as a policy?

Someone would have to take over the premium payments. The person on Medicaid in a nursing home won't have and money to keep premiums going so the would lose everything they paid into the policy.

Most FE has a nursing home benefit for that very reason. If it doesn't it usually goes RPU.

 

[WinoBlues]

Someone would have to take over the premium payments. The person on Medicaid in a nursing home won't have and money to keep premiums going so the would lose everything they paid into the policy.

Most FE has a nursing home benefit for that very reason. If it doesn't it usually goes RPU.

Would medicaid take the proceeds from the policy with the waiver or rdpu? How about a policy that the insured never owned or assigned ownership to more than 5 years ago? As, I own the policy on my mother. She has never had ownership or made a payment to it.

 

[SportsNut]

Would medicaid take the proceeds from the policy with the waiver or rdpu? How about a policy that the insured never owned or assigned ownership to more than 5 years ago? As, I own the policy on my mother. She has never had ownership or made a payment to it.

They can't count or take what she doesn't own, with the exception of lookback (5yrs). In your case that isn't a factor, so they can't count the policy of seize any value from it either.

 

[Newby]

Would medicaid take the proceeds from the policy with the waiver or rdpu? How about a policy that the insured never owned or assigned ownership to more than 5 years ago? As, I own the policy on my mother. She has never had ownership or made a payment to it.

Yep. What Sportsnut said.