Ashber Insurance Solutions Agency
MEDICAID COMPLIANT ANNUITY
A Medicaid Compliant Annuity (MCA) is a type of immediate annuity that converts excess resources for Medicaid planning purposes into an income stream. It must contain specific language including: irrevocable, non-assignable, equal payments, actuarially sound, and naming the state as a remainder death beneficiary to the extent Medicaid benefits are provided. A MCA can be a powerful spend-down tool in the case of an individual client or a married couple. We offer MCAs as short as 2-months.
ASSET-BASED OR HYBRID LONG-TERM CARE (LTC)
Asset-Based or Hybrid LTC insurance combines long term care insurance with either life insurance or annuities. In the event that you do not use long term care services, your beneficiaries will receive a death benefit or payment. Furthermore, hybrid insurance policies often offer a surrender value—which is a cash payment that is paid to you if you choose to cancel the policy. Typically, these policies are single payment premiums or flexible payment premiums for a certain number of years. These policies can be funded with tax-qualified/IRA dollars or post-tax dollars and are flexible in terms of the benefit periods.
A deferred annuity is an annuity contract between an individual and an insurance company that guarantees a fixed income upon maturation equal to the principal and a minimum interest rate in exchange for payments for a set period of time.
IRREVOCABLE FUNERAL EXPENSE TRUST
Purchasing a Funeral Expense Trust is a great way to spend-down countable assets for Medicaid planning purposes by setting monies aside for an expense all of us will incur. By purchasing a funeral expense trust, a family can not only accelerate Medicaid eligibility, but the policy is completely portable to use at any funeral home across the country.
WHOLE LIFE INSURANCE
Each state allows for a Medicaid applicant to retain a small whole life insurance policy when applying for benefits. Depending on the state, this amount can range from $1,500 – $10,000 and allows a family to preserve more assets and create a wealth transfer.
TRADITIONAL LTC POLICIES
With traditional long-term care insurance, you have the flexibility to customize your policy to fit your need. For example, you choose the exact amount of coverage you want. You also specify when you want your benefits to start and how long you'd like them to last. This makes traditional long-term care insurance generally one of the most efficient ways to get the most coverage for your premium paid. Typically, you pay an annual premium for life, although your premium payment period could be shorter. Also, premiums are not guaranteed to stay the same and may rise after purchase. If you cancel your policy or end up not using long term care services, typically you will not receive refunds of your premium or any cash value.
Some state Medicaid offers require three refusal letters obtained from companies like J.G. Wentworth, Peachtree Financial etc., representing that a Medicaid Compliant Annuity has no value on any secondary market.