I am working with an insurance company which has developed the newest Medicaid planning product. The product was designed for families of all wealth, but really has a special interest amongst those families in the low to moderate range. The product is a single pay life insurance policy, and is a guaranteed issue to age 99.
Once the life insurance policy is issued, the owner/insured immediately assigns all of his or her interests to a trust controlled by the life insurance company. The assignment is an uncompensated transfer for Medicaid purposes, and will disqualify the insured from obtaining Medicaid benefits for 60 months.
On the first day following the 60 month period, the insured is immediately eligible for Medicaid benefits - assuming that he or she has countable assets of no more than $2,000.00 and monthly income that is less than the private pay rate of the nursing home. For most clients, the asset and income tests are easily satisfied.
Finally, following the insured's death, the insured designated beneficiary(ies) will receive the life insurance proceeds.
The life insurance policy is an excellent tool for those clients who are looking to pre-plan for Medicaid. The policy can accept a single pay amount of no more than $50,000 per insured, and the death benefit can be divided up amongst any number of beneficiaries or can be paid to a family trust. It is an outstanding product for those individuals who want to leave behind a small family legacy.
At Krause Financial Services, LLC., we specialize in working with the latest and greatest Medicaid products. To learn more, please get in touch with us.