Does Cash Value of Life Insurance Policy Affect Medicaid Qualification?

by Bob

Question:

What happens to the cash value in a life insurance policy when and if you have to enter into a nursing home or assisted living facility?


Answer:

All cash value is countable as an available asset if the total face values of life insurance policies exceed $1,500. So the owner may need to borrow the money and spend it down (or gift it, etc.) before qualifying for Medicaid.


You can find similar helpful medicaid information at Medicaid Secrets Blog.