Can accelerated benefits affect Medicaid or other assistance?

Question

As things stand, a life policy includes an accelerated death benefit that may allow access to part of the death benefit during a serious illness. I would like to understand the tradeoff before relying on it. What I need to account for is that a recent family or job change made me realize that the policy may no longer match the reason I bought it.

Soradin · Accepted Answer

Receiving money can affect asset or income based programs, so benefit planning should occur before payment. As part of the policy review, accelerated death benefits may allow an insured person to receive part of the life insurance benefit while living after a qualifying terminal or serious condition. The contract and current values provide a more reliable picture of the coverage, instead of treating a sales presentation as the controlling document. Base the review on the policy language and the current illustration, then have a licensed insurance professional provide a written explanation of the relevant guarantees, exclusions, riders, and surrender restrictions.

Can accelerated benefits affect Medicaid or other assistance?

Soradin

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