When applying for Medicaid, is a term life insurance policy counted as an asset?

No - term life has no cash value.

Most term insurance does not build cash value. However if it is a universeal it could have cash value..

So any cd's ....money markets....savings and any kind of checking accounts would be taken ? As some of them mature? Is there a amount you can have before they take them? Is house and cars part of the take away? Does having a family trust matter or save any of it?

Fandango12 is correct, however, if the term insurance is over $100,000, it can be converted into cash via conversion through a Life Settlement. Therefore, Medicaid often can be delayed. Not unlike resources such as Aid and Attendance, or reverse mortgage, selling a term policy can assist someone in paying for care.

Sandy, As I understand it, One house and one car are protected. As a spouse I am allowed to protect 1/2 of our total assets, such as our investments. Everything else must be spent for his care. Its a complicated process so if this is a possibility be sure to see an elder care attorney and sooner rather then later because what you do today can effect eligibility later. The rules are different for a single elder.

Term insurance has no cash value and is not considered a countable asset. The state cannot compel the owner to sell the policy for a life settlement as suggested by another post. Further, the death benefit will escape Medicaid Estate Recovery as long as the beneficiary is not the estate of insured. In other words, the beneficiary should be a trust or real person.

The information above is provided for informational and educational purposes only, is generally available to the public, and should not be considered financial or legal advice.

Read Gabriel Heiser's book on Medicaid, it's at your public library, recently updated.

Thx u I think getting a elder care lawyer is the good option cause both parents I caregive for and their getting close to the point they will be needing more skilled help than I can give but their always worried the state will take everything...I myself the only one left to help them...they have a family trust and as far as I'm concerned their well being is more important to me than any inheritance. ..I tell them they can't take it with them so why not have the care u need and be happy...thxs again...