Medicaid Qualified Annuity
Various Medical Benefits
The annuities that safeguard individuals’ interest for long term medical benefits can be termed as Medicaid qualified annuity. The rules and regulations of such annuities differ from company to company and from state to state. Old individuals and retirees show keen interest towards the Medicaid qualified annuity for getting immunity against ill health in the later years.
One of the Medicaid strategies suggests draining out one’s assets for later qualification of Medicaid sustenance. Reasonably, most of the retirees are not at all interested at putting their life long saving and assets at stake. Hence they must make a clear understanding before entering into the contract.
Every individual has a concern at the back of the mind to make some sturdy arrangement for his old age medical expenses. This concern makes them look for Medicaid friendly annuities that are reasonably offering them long term viability. Individuals understand the fact that a Medicaid qualified annuity will be of great utility for them to cover the probable health-care expenses.
While entering into accord for a Medicaid enabled annuity, all clauses and aspects should be considered with clear mind. Since annuitants put in their hard earned money into these schemes they also have full right to understand what option is best for them and for their projected needs.
Those people who want to determine whether the purchased annuity will get qualified for Medicaid, must comply to the following criteria:
• The annuity must be of immediate or deferred nature.
• The promised payout has to be for the life of the annuitant, or with term that is shorter owner’s expected life.
Those annuities that conform to these criteria are considered best suited as Medicaid qualified annuity. Usually, there is no forced option of liquidating the annuity of the holder for transforming it into cash or countable assets, but still annuity payouts are counterbalanced for the support of the ailing person.
Every individual state conforms to their respective set of rules and regulations while dealing with annuities that are sheltered against Medicaid. It is better to get expert advice from thorough professional who would provide a complete insight into every aspect of Medicaid friendly annuities.
While taking services of an annuity agent to understand the concepts of Medicaid qualified annuities, be clear and crisp right since beginning. At times, for the sake of hefty and lucrative commissions, the agent will just concentrate on selling annuity without explaining to the client its Medicaid friendliness.
Here the client has to be smarter than the agent and get the maximum exploration out of him. The prime reason behind such behavior of agents is the low commissioning for the Medicaid and high for the standard annuities.
To avoid such unfortunate interactions, always consult an attorney who is an expert in Medicaid friendly annuities. Always seek legal advice so that neither you nor the insurance company gets into financial mess. Most importantly, comply with those state rules where you plan to spend your post retirement years lest any other state rules might clash with one another.
Back to Types of Annuities from Medicaid Qualified Annuity