The Texas legislature recently passed a bill which enables Texas residents to sell their life insurance policies to fund their Medicaid long-term care. Third-party companies typically buy the policies from seniors concerned about how to financially fund their long-term care needs in their later years and cash them in after the seniors die, keeping as much as 45 percent of the policy.<\/p>\n
Texas Gov. Rick Perry passed House Bill 2383, allowing Texas residents who hold a life insurance policy of at least $10,000 to sell it via a life settlement. The money typically goes directly into a nonrefundable account from which long-term care expenses are paid, not directly back into the pocket of the senior. Texas Medicaid does not include life settlement proceeds in asset assessment while determining an individual’s Medicaid nursing home benefits eligibility. A similar bill is being considered in other states, including Florida, California, Louisiana, Kentucky, Montana, North Carolina (more…)<\/span><\/a><\/p>\n","protected":false},"excerpt":{"rendered":" The Texas legislature recently passed a bill which enables Texas residents to sell their life insurance policies to fund their Medicaid long-term care. Third-party companies typically buy the policies from seniors concerned about how to financially fund their long-term care…<\/span><\/p>\n