ALLiS Login | phone icon (877) 254-4429

Policy Matters

FOURTH QUARTER 2015

NEWS YOU CAN USE FROM THE EXPERTS AT LLIS

When applying for Medicaid, assets are divided into two categories: countable and non-countable. Countable assets are considered liquid (readily available) to pay for long term care needs and the state generally expects those assets to be used first before receiving a government benefit. Non-countable assets aren’t included in the amount of assets Medicaid expects you to use to pay for your own care.

Protect savings by spending on “non-countable assets”:

  • Prepay funeral expenses
  • Small amount of life insurance
  • Pay off mortgage
  • Home repairs
  • Replace old auto
  • Update home furnishings
  • Pay for more care at home
  • Buy new home

Countable assets (which vary by state) are used in determining financial eligibility for Medicaid. They include:

  • Vehicles other than the one used primarily for transportation
  • Life insurance with a face value over $1,500
  • Bank accounts and trusts
  • Your home provided that your spouse or child does not live there and its equity value is greater than $500,000 ($750K in some states)

The bottom line is that a long term care insurance policy can help protect your clients’ assets by avoiding the spend-down required by governmental assistance entities; and your clients’ family assets by avoiding them having to pay for the care.

SOLUTIONS AVAILABLE THROUGH LLIS

Term Life Insurance | Low-Load Universal Life (Individual & Survivorship) | No Lapse Guaranteed Univeral Life (Individual & Survivorship) | Long Term Care Insurance | Disability Insurance | Critical Care Insurance | Low-Load Variable Annuity | Immediate and Fixed Annuities | Low-Load Variable Universal Life | Hybrid Life/LTCi | Hybrid Annuity/LTCi

(We recommend low-load permanent life insurance and annuities when possible)

(Not all policy types available in all states)

For a list of current providers, visit the Advisor Tools section of our website and click on "Insurance Companies We Work With".

NAPFA ACP Garrett Planning Network NAPFA XYPN BLatinX Internship Inc. Sponsor