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Working on getting mother on Medicaid. I am told if she has a whole life insurance policy of her own then she will be denied Medicaid.


Eventually she will be going to a nursing home.


Can I open a life insurance policy on her?

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As my husband says, one can get anything insured if one is willing to pay any price. In my opinion, taking out an insurance policy on a 79 year old woman who has all sorts of health issues makes no financial sense at all.
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Why do you want to take out a policy on her? Funeral expenses? I would talk to an insurance agent. You will have to pay for premiums. Any SS and pension will be used for her care. Depending on the state, money will be set aside (my state its $50) in a Personal Needs Account that can be used for personal things.

When applying for Medicaid all assets like CDs, IRAs, bonds, stocks have to be cashed in for Moms care. They are not denied Medicaid if the have an insurance policy that has cash value. They will just be asked to cash it it. You are allowed to set up a prepaid funeral to help with the spend down.

Someone did mention that a CD can be set up for funeral expenses.
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If YOU take the policy out & YOU’RE the one paying for it, yes you can. Your Mom just can’t be the owner. At least that’s how it is here in GA. You may well find the cost of the policy isn’t worth what payout would be at this stage.
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No, you can’t. Your profile says your mom has Alzheimer’s/dementia so the only kind of insurance policy she can have is the type that Medicaid considers an asset. The only type of life insurance policy you can take out on her with her diagnosis is a guaranteed issue life insurance policy—and it will be considered an asset by Medicaid.
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Medical insurance? Life insurance? Life insurance with cash value would have to be cashed in to pay for nursing home care. There is not a medical insurance policy that would pay for a nursing home. It will have to be self pay until her cash assets, including cash value of life policy, have to be spent down for HER needs to qualify for Medicaid. Medicaid will perform an audit of her assets for the past five years to determine eligibility.
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It is highly unlikely your mother would be eligible for any sort of life insurance. A whole life insurance policy if available would cost as much if not more than the coverage.
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