 Posted: Fri Aug 29, 2008 10:06 am Post subject: |
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| Quote: | | Must my mother's life insurance policies be surrendered if she enters a nursing home? |
No.
But that's not the whole story.
If you are asking if the cash value in a life insurance insurance policy is a countable asset to qualify for MediCAID nursing home benefits then the answer is maybe:
Each person may have life insurance with face value up to $2,500.
If face value is greater than $2,500, the cash value counts as an available asset. Any policies with no cash value, such as term insurance, are excluded.
See THIS link.
This information is specific to Florida. Your home state may be slightly different. Many states have passed legislation whereby a person can legally exempt their assets from MediCAID spend down by purchasing a qualified Long Term Care Partnership Policy.
See Florida Statute 409.9102
| Quote: | | (b) Provide a mechanism to qualify for coverage of the costs of long-term care needs under Medicaid without first being required to substantially exhaust his or her assets, including a provision for the disregard of any assets in an amount equal to the insurance benefit payments that are made to or on behalf of an individual who is a beneficiary under the program. |
| Quote: | | (4) The Department of Children and Family Services, when determining eligibility for Medicaid long-term care services for an individual who is the beneficiary of an approved long-term care partnership program policy, shall reduce the total countable assets of the individual by an amount equal to the insurance benefit payments that are made to or on behalf of the individual. |
The catch is you have to qualifiy medically for the long term care policy and have the financial ability to pay the premium.
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Gary Spicuzza, *SAFE
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*Self Appointed Financial Expert |
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GarySpicuzza
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