“My life insurance policy won’t affect my Medicaid eligibility.”
It might. Medicaid counts cash value life insurance as an asset. If your total cash value exceeds your state’s asset limit (often as low as $2,000), you could be disqualified — even if you’ve paid into that policy for years. Consider converting your whole life policy into a Funeral Trust.
“I’ll just deal with Medicaid when the time comes.”
Waiting until a crisis hits can leave families scrambling—potentially depleting their savings and limiting available options. Pre-planning allows you to protect assets, preserve choice, and avoid unnecessary financial and emotional stress.
“If I give my money away, I’ll be eligible right away.”
Gifting money can trigger a Medicaid penalty period, especially if it’s done within the 5-year look-back window. The right planning involves legal, strategic steps that avoid costly mistakes and protect your eligibility. The Funeral Trust is not considered a gift when done properly.