Can You Have Life Insurance While On Medicaid

The medicaid estate recovery program employs several different means of recovering assisted living outlays. Medicaid has an enormous number of complicated rules and reading convoluted life insurance policies can make lawyers want to weep.

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Medicaid cannot take your life insurance policy while you are still living.

Can you have life insurance while on medicaid. With an active term policy your beneficiaries get a death benefit when you die as long as the premiums are paid up. What you can and cant keep with medicaid. Todays video is part of our series on the medicaid rules specifically what you can and cant keep consistent with eligibility.

You are allowed a final expense life insurance policy that is designated for funeral cemetery and other final expense needs. The rules on life insurance and medicaid are in a state of flux. Can medicaid take my life insurance policy.

Some seniors must include their life insurance policies in their spend down strategy to qualify for medicaid long term care services. Under federal law life insurance benefits cant be garnished in this manner. The cash value no longer counts because you do not own the policy.

Hi im wes coulson and this is your elder law minute. Under certain circumstances life insurance policies are considered countable assets and can affect medicaid eligibility. Balancing the benefits of life insurance and medicaid requires careful planning.

You have many things to consider when applying for medicaid. For example you can keep term life insurance but someone must pay the premiums. If you were to receive a large life insurance payout while on medicaid it could disqualify you from receiving further benefits at least for a time.

If you are receiving medicaid benefits your spouse may also need to revisit their life insurance policies and reposition some of their assets. Term life insurance policies have no cash value so theyre not counted toward the medicaid assets limit. While on medicaid you can have any amount of term life insurance that you wish.

How are you supposed to plan for the future in the midst of this quagmire. However its not currently authorized to seize the life insurance benefits that may be paid out to medicaid beneficiaries heirs. However based on the face value of your policy it may be counted towards medicaids asset limit rendering you ineligible for medicaid.

Eligibility requirements differ from state to state but for the most part states all have stipulations about life insurance and whether owning a policy will affect your eligibility in any way. For whole life policies one solution is to sell the policy to your children who will continue to pay the premiums.

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