Medicaid Life Insurance at Life

Medicaid Life Insurance. So life insurance can count as an asset depending. However, based on the face value of your policy, it may be counted towards medicaid’s asset limit, rendering you ineligible for medicaid.

Gary botwinick, an estate planning attorney and chair of the taxation/trusts and estates department at einhorn harris in denville, discusses the importance of documenting any source of assets that are associated with life insurance policies. Because your income impacts whether you qualify for life insurance coverage, some people on medicaid might not be able to get a standard life insurance policy. In terms of life insurance, medicaid has no problem with your owning life insurance or any other asset in that matter.

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As such, it sets limits on the value of assets you can own. To qualify, the face value of your whole life. Medicaid cannot take your life insurance policy while you are still alive. The total combined face value(s) of $1,500 or less is considered “exempt” and will not affect the medicaid application regardless of the cash value.