that he owns, a term life policy for $30,000. I am the daughter and I am the beneficiary. This money was for his burial and other outstanding bills when the time comes. Question: Will medicaid take the WHOLE amt. or does medicaid allow some money towards a burial? By the way, NO plans were written or ANYTHING, I guess my father thought he would live forever. I am not being sarcastic, but I am a nervous wreck over this! I have another Question: Since I am the primary beneficiary and not my mother, does medicaid take it anyway??? I understand they need money for the care, but when thats all you have to bury a person, will they at least give you back half?? Funerals are not $500 anymore like they used to be. Thank you!
Now, when she passes I have to account for the money I spend on her funeral expenses. So if it costs $8,000 for the funeral Medicaid gets the remaining $2,000.
That's the way it works in NY. So that do allow money for the funeral expenses...there just won't be an estate left over for her to pass on to us.
You need to speak with your state's program to see if they require a surrender on a term policy above the usual funeral/burial costs.
If it's an old, old term policy, there could be a dividend issued, and that can complicate stuff for Medicaid application.I have this for my mom's situation and it's easily solved but most caseworkers don't know how to deal with amortization. At least it's term, as it's just awful when they had a whole life cash value policy & then have to cash it out after years and years and years of paying.
Also I'd go to the funeral home to see if they can work a conversion for the policy to become a prepaid funeral and burial with the balance still a term policy with you as the beneficiary that could be Medicaid compliant. Good luck.
One shiny & bright spot, once he is on Medicaid, he will have no medical or other health care bills upon death between what Medicaid & Medicare pays for.