If a person has an insurance policy that does not accrue any cash value does it still count as an asset for Medicaid?


My sister has been diagnosed with early onset dementia. For right now she is living alone on a very fixed income, however I see needing to put her in a nursing home in the future and applying for Medicaid. She is the owner of the above policy.

Find Care & Housing


Some states place limits on the face value of term life. Larger ones can be sold aka a “settlement” with the proceeds from the sale used for spend down. Life settlement firms are out there but it’s kinda a lousy deal for the consumer. If you find she is going to need to sell and policy is large, she can get a broker to do a viatical life settlement sale to an investor. It sounds creepy but for those who have a verified diagnosis of terminal disease, the viaticals pay better than half.
Helpful Answer (0)
Reply to igloo572

No. Term life insurance policies are not considered an asset for Medicaid purposes.
Helpful Answer (0)
Reply to AlfredR