Will this life insurance policy be seen as an asset by Medicaid?
Q. My mom has early onset Alzheimer’s and is moving into a facility that has a two-12 months expend down prior to Medicaid. We’re finding all of her financials in purchase and are informed of the five-calendar year lookback. A buddy experienced instructed me about modified complete daily life insurance policy that is advertised a lot more or fewer as intended for funeral/burial arrangements and is assured acceptance. Would this variety of insurance be seemed at as an asset in the eyes of Medicaid and disqualify her in a couple many years when we go to utilize for it?
— Making an attempt to assistance
A. We’re sorry to hear about your mother’s problem.
But we’re happy she has enable from you.
In order to qualify for Medicaid gains, candidates can’t have much more than $2,000 of countable assets, mentioned Shirley Whitenack, an estate setting up attorney with Schenck, Value, Smith & King in Florham Park.
“Medicaid legislation exempts whole daily life procedures from countable property if the policy’s deal with worth is fewer than $1,500,” she mentioned. “If the facial area benefit is additional than $1,500, Medicaid will rely the income surrender price toward the $2,000 limit.”
Modified total lifestyle procedures have a cash surrender price just like essential whole daily life coverage guidelines, Whitenack stated.
Good luck.
Electronic mail your issues to [email protected].
Karin Value Mueller writes the Bamboozled column for NJ Advance Media and is the founder of NJMoneyHelp.com. Comply with NJMoneyHelp on Twitter @NJMoneyHelp. Uncover NJMoneyHelp on Facebook. Signal up for NJMoneyHelp.com’s weekly e-e-newsletter.
