Can the state lay claim on any of the proceeds of life insurance if the person is either medical, medicare, or SSI - disability, when they die?
Total Comments: 1
Posted: Mon Apr 04, 2011 08:15 pm Post Subject:
No one other than the beneficiary has a claim to life insurance proceeds. If there is no named beneficiary, the death benefit will be paid to the owner/owner's estate (usually that of the deceased insured). In the estate, the money is subject to the claims of creditors.
Medicare, SSI, most disability income benefits, are not subject to recovery/subrogation. Medicaid (Medi-Cal in California) is a different story. After age 55, all Medicaid dollars are subject to asset recovery. While they cannot touch the life insurance money directly, the state will have a lien on the home/estate of the decedent.
Posted: Mon Apr 04, 2011 08:15 pm Post Subject:
No one other than the beneficiary has a claim to life insurance proceeds. If there is no named beneficiary, the death benefit will be paid to the owner/owner's estate (usually that of the deceased insured). In the estate, the money is subject to the claims of creditors.
Medicare, SSI, most disability income benefits, are not subject to recovery/subrogation. Medicaid (Medi-Cal in California) is a different story. After age 55, all Medicaid dollars are subject to asset recovery. While they cannot touch the life insurance money directly, the state will have a lien on the home/estate of the decedent.
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