DI Cant Buy Life Insurance? 2 Questions

[LaughDontCry]

1)Lady yesterday 63 said that her local administrator told her she could not buy any life insurance or it would jeopardize her Disability check. She is NOT on medicaid, but living on next to nothing, has been on DI since 48, poor health.
Is she misinformed? or am I?
We are in NC.

2) Where can I find out if NC allows Medicaid recipients to own whole life ins?
Some say yes, they only count as an asset cash value. So ok at least for a few years?
Others say, they count Face Amount...So they cant buy any?

Need to know since almost all my leads are very poor folks


Thanks, LDC

 

[John Galt]

1)Lady yesterday 63 said that her local administrator told her she could not buy any life insurance or it would jeopardize her Disability check. She is NOT on medicaid, but living on next to nothing, has been on DI since 48, poor health.
Is she misinformed? or am I?
We are in NC.

2) Where can I find out if NC allows Medicaid recipients to own whole life ins?
Some say yes, they only count as an asset cash value. So ok at least for a few years?
Others say, they count Face Amount...So they cant buy any?

Need to know since almost all my leads are very poor folks


Thanks, LDC

I had a lady ask me that last year. I told her to at least keep her policy for 15 months and we will revisit the issue then Been 15 months and she just left me a voice mail....I called her and am having her put it into another persons name as the owner. She can still be the insured and the payor, but not the owner...this way she does not "own" the cash incurring asset, she only controls it..make sense?

 

[WholeLife]

1)Lady yesterday 63 said that her local administrator told her she could not buy any life insurance or it would jeopardize her Disability check. She is NOT on medicaid, but living on next to nothing, has been on DI since 48, poor health.
Is she misinformed? or am I?
We are in NC.

2) Where can I find out if NC allows Medicaid recipients to own whole life ins?
Some say yes, they only count as an asset cash value. So ok at least for a few years?
Others say, they count Face Amount...So they cant buy any?

Need to know since almost all my leads are very poor folks

Thanks, LDC

The cash value buildup would be the only concern if on Medicaid. You can avoid the problem by having another family member be the owner of the policy. The family member should not be on Medicaid either.

 

[John Galt]

The cash value buildup would be the only concern if on Medicaid. You can avoid the problem by having another family member be the owner of the policy. The family member should not be on Medicaid either.

Pretty much what I said 2 mins ago

 

[WholeLife]

Pretty much what I said 2 mins ago

I think we sent that at about the same time.

 

[LaughDontCry]

1) What about the DI question?

2) Are you sure its the cash value thats a concern? or face amount?
It doesnt make sense that it would be a face amount, since it alone lacks any value, but Gov't doesnt make sense often.

3) Can you then write it up.....Change ownership later say 2 years in?

 

[WholeLife]

1) What about the DI question?

2) Are you sure its the cash value thats a concern? or face amount?
It doesnt make sense that it would be a face amount, since it alone lacks any value, but Gov't doesnt make sense often.

3) Can you then write it up.....Change ownership later say 2 years in?

1) ?
2) Yes cash value.
3) Yes you can change owner later.

 

[LaughDontCry]

Thanks Whole Life.

Maybe someone can explain the first question?
1)?

 

[WinoBlues]

I agree and do change ownership. However, you have to watch the look back period. I prefer to start out with a different owner if possible.

 

[jdeasy]

1)Lady yesterday 63 said that her local administrator told her she could not buy any life insurance or it would jeopardize her Disability check. She is NOT on medicaid, but living on next to nothing, has been on DI since 48, poor health.
Is she misinformed? or am I?
We are in NC.

2) Where can I find out if NC allows Medicaid recipients to own whole life ins?
Some say yes, they only count as an asset cash value. So ok at least for a few years?
Others say, they count Face Amount...So they cant buy any?

Need to know since almost all my leads are very poor folks


Thanks, LDC

No effect on disability income. Only concern is the cash value is a countable asset when getting assistance. Not just medicaid, any assistance where income and assets are a consideration.

The cash value is counted just as if it were sitting in their checking account.

Now, do morons down at the SS offices and welfare offices get that screwed up all the time and give erroneous advice? Everyday!