A Person Who Is On Medi-cal Is Their Life Insurance Confiscated If It Is To Be Used For Burial Only?
Posted June 23, 2009 – 10:28 pm in: structured settlements FAQI have a friend that is on Medi-Cal for medical reasons and she received a letter from them listing all assets at the time of her death would be given or taken to offset any monies paid by them during her lifetime. Would her Life Insurance policy, which she carries for burial expenses, be confiscated by Medi-Cal. Would appreciate an answer from anyone that has run across this problem and has legal knowledge. Thanks!
Tags: Burial, Confiscated, Insurance, Life, Medical, Only, Person, Their, Used
2 Comments
They will not take the life insurance proceeds at death. However, if the insurance policy has a cash value they will count anything over $1500 as an asset. She may end up having to cash in the policy to pay for her cost share. Or, she can convert it to an annuity which will keep her from paying taxes and will give her an income stream which, if done right, will last the rest of her life. If it has less than $1500 cash value or if it is a term policy she’ll be OK.
No. Life insurance proceeds go to the beneficiary only and cannot be taken by Medi-Cal or any other creditor.