Wish List

[Indy007]

Okay, tomoverton0123 said only to "make the beneficiary irrevocable and most states will exclude the cash value for Medicaid purposes".

What if Mrs. Client irrevocably assigned beneficiary to her daughter, and her daughter allows Mrs. Client to access the cash value whenever she wants? That's one issue. The other is the Medicaid "look back period", which is usually 5 years.

Just making the beneficiary irrevocable does nothing for qualifying for Medicaid. As Newby said, Mrs. Client would need to assign ownership to a funeral home, have them as irrevocable primary beneficiary with Mrs. Clients estate as secondary in which Medicaid would get after Mrs. Client passed away.

 

[Newby]

----------

How often do you use the Settlers/NGL trust?

Probably 1/3 of my Settlers policies have a trust.

I don't use Settlers as much as I'd like to since they won't allow replacements in KY. Just about everyone is canceling something when they buy FE.

----------

Found this in my KY license exam manual. Read the next to last paragraph.

It might say that but you won't find any Medicaid caseworkers going by that. And likely few insurance companies either.

 

[Biggin]

Probably 1/3 of my Settlers policies have a trust.

I don't use Settlers as much as I'd like to since they won't allow replacements in KY. Just about everyone is canceling something when they buy FE.

----------



It might say that but you won't find any Medicaid caseworkers going by that. And likely few insurance companies either.

That's interesting. In MI I only see about 25% sales are replacements. 25% is generous, too. I guess you can look at that 2 ways. Wide open market or lots of people that don't care about life insurance. Either way, I'll just sell whatever smelly old toothless thing I'm in front of.

 

[goillini52]

That's interesting. In MI I only see about 25% sales are replacements. 25% is generous, too. I guess you can look at that 2 ways. Wide open market or lots of people that don't care about life insurance. Either way, I'll just sell whatever smelly old toothless thing I'm in front of.

Watch out for the dog piss and fleas!

 

[shonceman]

This occasionally comes up for me. Here in TX we can write "stipulated premium" policies, which are essentially Whole Life with no cash value. They're often sold by funeral homes under a limited license. They can be written up to 25k. Don't know whether it's still available, but Settlers Life was originally The Huff-Cook Mutual Burial Association. Association membership "certificates" basically worked the same way. Level premium & death benefit with no cash value. I wrote these occasionally through Settlers in VA, and I think they may have been available in TN & NC also. I've learned that other states sometimes have similar plans available, although they're becoming rare as these little companies fold into bigger FE companies (as Settlers did into NGL).