Life Insurance for Estate Planning
Can life insurance be used for Medicaid planning?
Life insurance can be used in Medicaid planning. Irrevocable life insurance trusts (ILITs) can remove assets from the Medicaid-countable estate. Certain types of life insurance (term, group) are not counted as assets for Medicaid purposes. An elder law attorney can help you design a Medicaid plan.
Key Points
- ILITs: remove assets from Medicaid-countable estate
- Term life insurance: typically not counted as a Medicaid asset
- Whole life cash value: may be counted as a Medicaid asset above certain limits
- Elder law attorney: can help design a Medicaid plan
- An independent agent can help you find life insurance for Medicaid planning