Medicaid Compliant Group Life
Discover a new, innovative tool in crisis Medicaid planning. Medicaid Compliant Group Life is an insurance product specifically designed to help keep assets from Medicaid’s reach and preserve them for your client’s loved ones.
Medicaid Compliant Group Life is an exclusive, group single premium life insurance policy designed to spend down assets during crisis Medicaid planning. This unique product is guaranteed issue and does not include any cash value. It is ideal for individuals seeking to accelerate Medicaid eligibility while creating a significant wealth transfer.
When to Consider Medicaid Compliant Group Life
This solution is designed for individuals facing an immediate long-term care need and may be appropriate when:
- They are actively going through the crisis Medicaid planning process
- Their primary goal is to preserve assets for transfer to the next generation
- They reside in a state where estate recovery does not extend to life insurance policies
Benefits of Medicaid Compliant Group Life
Traditional individual life insurance policies often include cash value or may be unavailable to clients due to advanced age or health concerns. This is not a typical life insurance product—Medicaid Compliant Group Life was created specifically with asset preservation for crisis planning in mind.
Guaranteed Issue
Because the policy is structured on a group chassis, it is guaranteed issue. There is no maximum age limit, and no medical underwriting is required.
No Cash Value
Medicaid regulations impose limits on the cash value of life insurance policies. This product is structured without any accessible cash value—a necessity for spending down excess assets.
Irrevocable
Similar to a Medicaid Compliant Annuity, this policy is irrevocable and cannot be sold, surrendered, or redeemed for cash. Funds are only accessible to the named beneficiaries upon the insured’s passing.
WHY USE MCGL?
Because there is no requirement to name the state Medicaid agency as beneficiary, Medicaid Compliant Group Life is a unique solution that protects up to 100% of the client’s spend-down amount in the form of a death benefit for their desired heirs.
EXPLAINING THE
DEATH BENEFIT
The key to this product and its economic advantage to the client is the death benefit. The named beneficiaries receive the proceeds from the policy either in the form of periodic payments over a five-year term or a commuted lump sum.
MCGL FAQS
Get the details on this exciting new product from Krause including information regarding the insurance carrier, the group element, how it differs from traditional life insurance policies, and the process of obtaining the product.
Medicaid Compliant Group Life Product Features
This product is a group single premium life insurance policy designed to work within the context of the Medicaid program.
- Guaranteed issue with no age limitations
- Minimum investment of $5,000
- Maximum investment of $1,000,000
- Two death benefit options available
- Currently available in PA, TX, and WV
- Exclusive to Krause Financial
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