Q. My mom has early onset Alzheimer’s and is transferring right into a facility that has a two-year spend down previous to Medicaid. We’re getting all of her financials so as and are conscious of the five-year lookback. A pal had advised me about modified entire life insurance coverage that’s marketed kind of as meant for funeral/burial preparations and is assured acceptance. Would this sort of insurance coverage be checked out as an asset within the eyes of Medicaid and disqualify her in a pair years once we go to use for it?
— Making an attempt to assist
A. We’re sorry to listen to about your mom’s situation.
However we’re glad she has assist from you.
In an effort to qualify for Medicaid advantages, candidates can not have greater than $2,000 of countable belongings, stated Shirley Whitenack, an property planning lawyer with Schenck, Worth, Smith & King in Florham Park.
“Medicaid legislation exempts entire life insurance policies from countable belongings if the coverage’s face worth is lower than $1,500,” she stated. “If the face worth is greater than $1,500, Medicaid will rely the money give up worth towards the $2,000 restrict.”
Modified entire life insurance policies have a money give up worth similar to primary entire life insurance coverage insurance policies, Whitenack stated.
Good luck.
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Karin Worth Mueller writes the Bamboozled column for NJ Advance Media and is the founding father of NJMoneyHelp.com. Observe NJMoneyHelp on Twitter @NJMoneyHelp. Discover NJMoneyHelp on Fb. Join NJMoneyHelp.com’s weekly e-newsletter.