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My whole life insurance (2 policies) has cash value. One policy has all premiums paid-up, and the other requires the payment of annual premiums. Both have an annual dividend. how are these policies valued for medicaid eligibility? I understand that term policies which have no cash value are not counted as a resource. I am unable to convert my policies to term policies.

The cash value will be counted towards your total liquid assets, along with bank accounts. This is tied to the value of the policy, which varies by state. For instance, in Oregon if you have a whole life insurance policy over $1500 value then the cash value will be counted as part of an applicant's liquid assets, which must be under $2000 to qualify.

You're best bet would be to cash them out and use that money to prepay a burial or cremation plan, which is permissible under medicaid spend down rules.
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Reply to Isu995
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I agree you should cash them out and use to pre-pay for burial.
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Reply to Geaton777
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