If the face amount of the life insurance exceeds $1,500 at the time of Medicaid is being applied for, they could count the cash value of the policy. The face value is the amount beneficiaries would be paid in the event of the applicant's death. Death proceeds go to the beneficiaries of the life insurance policy based on the death “insured” not the policy owner. Consult an attorney before relying on any information dealing with Medicaid.
No, Medicaid will not take your life insurance. You can have as much Term life insurance as you want, and you can have a final expense policy that will fund your funeral and burial needs. You can also have Whole Life insurance, but if the cash value of your life insurance goes above a certain amount, you may need to adjust your policy when going on Medicaid. Talk to your Health and Human Services Dept to discuss their guidelines and your options if you have a Whole Life insurance policy.
President, Lane Independent Agency, Southern California
Absolutely yes, Medicaid will take the cash value of your life insurance policy, if they spent money on long term care for you. The cash value is one of your assets and can be ceased.
There are things you can do, however. I urge you to speak either with me or some other capable person, to establish an ILIT. That is an Irrevocable Life Insurance Trust. If done a few years in advance, you can shield all of the cash value of the policy in this special trust, and have your beneficiaries get all of it without being ceased. Love to discuss it. GARY LANE. garylane@cox.net. 714 422 9616.
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There are things you can do, however. I urge you to speak either with me or some other capable person, to establish an ILIT. That is an Irrevocable Life Insurance Trust. If done a few years in advance, you can shield all of the cash value of the policy in this special trust, and have your beneficiaries get all of it without being ceased. Love to discuss it. GARY LANE. garylane@cox.net. 714 422 9616.