SNF Medicaid spouse owns a $20K Term policy payable to surviving spouse, Non-SNF spouse owns a Whole life $20K policy (on the SNF spouse) payable to surviving spouse. The Whole life policy has some cash value. The Medicaid spouse has an Irrovocable cremation policy that is all paid up. It is assigned to the mortician. The non-Medicaid spouse has a cremation policy that is partially paid up with no specific names of family or morticians. It's assumed the non-Medicaid spouse's policy proceeds will go to the mortician who performs that creamation. It all sounds complicated especially since Medicaid varies from one state to another.
When applying for Medicaid long-term care benefits Medicaid is only concerned with life insurance policies that have a cash value. This cash value may be considered an asset for Medicaid eligibility purposes.
How the premium was/is being paid has no bearing on Medicaid's treatment of the policy.
can I go above the 15,000 in the term policy for my husband in a senf with dementia. .I am his community spouse
If non-Medicaid spouses predeceases Medicaid spouse and Medicaid spouse receives death benefit they may be disqualified for benefits ($2,000 asset limit).
You may wish to consider changing the beneficiary of the whole life policy.
Irrevocable cremation policies are not countable assets for Medicaid eligibility purposes.
Please tell me what SNF means? (Dumb I know, but I don't understand).
From my experience I recall that burial plans are not countable assets up to a certain amount, I think $15K in my state.
My observation is that if one spouse is already on Medicaid, all this stuff should have been handled during the application process.
Wish I could help more... Our own experience was extremely complicated due to two dozen financial/investment accounts, but our elder care atty got us through it and I did much, spell that MUCH leg work myself.
Grace+ Peace,
Bob