Can an elder on Medicaid keep an insurance policy?

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When is a small whole life policy considered an asset under 10,000 that will not earn any cash value for at least 2 years. And they are on Medicaid and receiving in home care, become a concern. Are there options to keeping the policy for her 2 disabled adult children. To help in settling after death matters. And does it have to be turned in as an asset even though there is no cash value yet. Planning for choices in alternative issues for this small policy? Is it worth having it for the time being. How to and when to make another choice. Is it going to harm her or her children at the beginning stages of such a policy?

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I think the best thing she could do was get some services set up now for them. Call your state disability department. Do they get SS? Medicare and Medicaid? I am going thru this right now with my disabled nephew. I am 68 and after my Mom's passing (he lived with her) that I needed to get him set up with DDD so he would be able to take advantage of their services as he progresses. He is 28. I won't always be around or able to care for him.
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It is a small amount less than $40 a month. Her soul concern is when she passes her children can relocate due to her being a renter. With no relatives to count on. She cannot in good conscious leave them no resources. She wants no funeral and her only desire is to be cremated, Successfully put to rest and let her children move on. Simple as possible. Her last wishes are to leave them the best memories, a little support and comfort trying to manage alone without their best friend and advocate. She is everything to them and more.....doing her best to prepare them for the hardest time in their lives. I commend her on doing the only thing she could RIP is paying for a small $7,000 policy to comfort and not left devastated with out any kind of resource. Her youngest child was just diagnosed with MS, and
both children are learning disabled ,with physical illnesses too. A huge burden and obligations a mother must do. Definitely not enough but will be everything to them that she did everything she could living on a disability check SSI. You Go Mom!!! Just a little could mean so much.......
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Generally, if there's no cash value, it's not a countable asset for Medicaid. It needs to be disclosed, regardless and Medicaid will verify the cash value itself. Don't withhold that information from the agency.

Even if there was some cash value, Medicaid does provide some exceptions to hold the policy if it's for funeral expenses. But, the Medicaid agency you are working with is the best source of answers for some of these questions, as each state has its own set of rules, etc.

Best wishes.
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If it has -0- cash value, it is not an asset. How is she going to pay premiums on this policy? It seems like this is an unwise use of money.
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