PREPAYING WITH INSURANCE

Many people have insurance to help pay for their final expenses.  Insurance can absolutely be used for this purpose.

If you choose to use insurance for non-medicaid purposes, the beneficiary (or beneficiaries) of the policy must sign the funeral contract and an “Insurance Assignment” will be filed with the insurance company.  This means the funeral home will be paid directly from the proceeds and the balance, if any, will be paid to the beneficiaries.

Medicaid views insurance policies as an asset.  Therefore, they will expect them to be used to fund funeral arrangements as part of the “spend down” of funds.  When using insurance to fund a pre-paid funeral, please bring with you a copy of the policy, as well as a recent statement showing the cost of premiums, the death benefit, and the cash value.  Having this information on hand will greatly benefit the funeral director in helping decide the best course of action for you, while meeting the requirements for Medicaid.