| Many people question if their insurance policy is | | | | the best option for you, although everyone is allowed |
| considered an asset with regards to Medicaid eligibility | | | | to have a small policy. |
| guidelines. Not many people understand that this type | | | | For a single person the guideline for assets is $2,000. It |
| of insurance is enough to give a complete answer to | | | | does not matter what the death benefit is on the |
| this question. It is not a simple yes or no answer. In | | | | policy, because Medicaid will only be concerned with |
| fact, depending on the type of insurance you have or | | | | the cash value of a whole-life insurance policy. |
| the insurance quotes you are getting will determine | | | | Therefore, if you're insurance policy has a cash value |
| your eligibility. | | | | of less than $2,000 and you do not have any other |
| There are two basic types of life-insurance: whole-life | | | | assets then you are within the acceptable guidelines. |
| insurance and term-life insurance. Whole-life insurance | | | | If you own a whole-life insurance policy or you are |
| provides a set death benefit that your beneficiaries | | | | getting insurance quotes for whole life and you do not |
| receive when you die. It also builds cash value that can | | | | want to do term insurance, but you are on Medicaid, |
| be taken out of the policy and used for a variety of | | | | there is an alternative to consider. You could still get |
| things with a variety of different plans. It is actually | | | | the coverage you want with the options that you want |
| worth money to the person whom it is insuring against | | | | and not have it count as your assets if you made a |
| their death; therefore it has value and is considered an | | | | close friend or relative the owner of the policy. This is |
| asset. Unlike whole-life insurance, term-life insurance | | | | not something to be considered lightly because the |
| does not have any value to the person whom it | | | | owner of the policy holds all of the rights to the policy |
| insures. Term insurance provides insurance in larger | | | | from that day moving forward, even if you are the |
| quantities at a locked in premium for a set time, or | | | | insured. |
| term. There is no cash value therefore no money can | | | | Another alternative if you already have the whole-life |
| be withdrawn from the policy unless the insured dies. | | | | insurance policy with a value greater than you are |
| Because there is no cash value, term insurance is not | | | | permitted to have, then you can take the cash value |
| considered an asset. | | | | out of the existing policy and convert it. For example, |
| People obtaining a quote of this type of insurance | | | | you can either spend it or reinvest it into a new, |
| often have varying reasons why they prefer a | | | | separate term-life insurance policy. |
| particular type of coverage over the other. Sometimes | | | | While some insurance policies do count as assets |
| the customer is unsure of what they need, so they | | | | which can affect your legibility, it is important to |
| ask for guidance. If you do this, it is extremely | | | | consider all the possibilities before making any |
| important to be very honest with the agent so that he | | | | decisions. Call your insurance agent and ask him or her |
| or she can accurately provide you with a quote that | | | | to do some insurance quotes. Explain to the agent |
| would best suit your needs. If you are enrolled in | | | | what you need, want the policy to do, what you can |
| Medicaid then term-life insurance would probably be | | | | afford and explain your legibility guidelines for Medicaid. |