Mom is in a nursing home and running out of money. I am beneficiary of a $6000 insurance policy. Do I have to cash this in and give it to the nursing home?
Total Comments: 1
Posted: Fri Jul 15, 2011 06:05 pm Post Subject:
Only the policyowner can surrender a policy for its cash value. As the beneficiary, you cannot do this. The nursing home cannot force the surrender of the policy, however, Medicaid may count a portion of the policy's cash value as a "spendable asset" which can affect eligibility for benefits.
Posted: Fri Jul 15, 2011 06:05 pm Post Subject:
Only the policyowner can surrender a policy for its cash value. As the beneficiary, you cannot do this. The nursing home cannot force the surrender of the policy, however, Medicaid may count a portion of the policy's cash value as a "spendable asset" which can affect eligibility for benefits.
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