Final Expense Policies That Don't Build Cash Value???

[Mattschmidt]

Hey everyone...I spoke to a prospect of mine, who wants potentially 10,000 to 15,000of insurance on his father, preferably permanent...The son is going to be owner, and payor of the policy...The father is on governmental programs, and we are afraid if he has a cash value product, he could be disqualified from the program...Any suggestions outside of Term Insurance???? Or are there some final expense companies that don't build up a cash value, and you simply just pay for the insurance...

Thanks in advance!

 

[Mark]

I think he can make a trust to help with this.

Talk to Newby about this.

 

[VolAgent]

If the son owns it, it is not an asset of the father. Then there are no concerns about the cash value.

 

[Mattschmidt]

That's what I told the prospect, but he said when he spoke to the department they said otherwise...I was very confused by their response....I thought if I'm just an insured, I have no ownership of the cash value.....
- - - - - - - - - - - - - - - - - -
It's the SSI service and 8 program department...I know nothing about them...

 

[VolAgent]

That's what I told the prospect, but he said when he spoke to the department they said otherwise...I was very confused by their response....I thought if I'm just an insured, I have no ownership of the cash value.....
- - - - - - - - - - - - - - - - - -
It's the SSI service and 8 program department...I know nothing about them...

And who says the prospect asked the question correctly? Call yourself and get documentation of the answer and references to where they found the answer.

 

[medsuptage]

assuming everything is as it seems.

There are non participating whole life insurance policies. (they don't pay dividends)

 

[Newby]

Hey everyone...I spoke to a prospect of mine, who wants potentially 10,000 to 15,000of insurance on his father, preferably permanent...The son is going to be owner, and payor of the policy...The father is on governmental programs, and we are afraid if he has a cash value product, he could be disqualified from the program...Any suggestions outside of Term Insurance???? Or are there some final expense companies that don't build up a cash value, and you simply just pay for the insurance...

Thanks in advance!

As long as the father NEVER owned the policy it will not count as his asset. But if he owned it and then later assigned the ownership to a son it is countable for 5-years.

Most caseworkers don't understand that the insured is not always the owner of their own policy. They just don't get it. They are usually dealing with people who are trying to hide or give away assets so they think that way.

The dad doesn't even need to disclose the existance of the policy if he has never had any ownership of it.

If it's for funeral expenses he can assign it to a funeral trust and there is NO look back. But you don't want to over fund those because any excess money in a funeral trust MUST go to the dad's estate and will be lost to Medicaid.

 

[Mattschmidt]

Newby,

thank you! I'm making a phone call tomorrow, and will try and get a definitive answer...I think the SSI worker may have been giving inaccurate info. over the phone.

thanks everybody!

 

[jerry176]

Newby,

thank you! I'm making a phone call tomorrow, and will try and get a definitive answer...I think the SSI worker may have been giving inaccurate info. over the phone.

thanks everybody!

To the executive conference room?
I couldn't resist

 

[Mark]

To the executive conference room?
I couldn't resist

lmao lol