Life Insurance
Retirement Planning
Medicare and Medicaid

Can the beneficiary on a life insurance policy of a terminally ill Medicare patient still collect if the patient is put in a nursing home?

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Wiki User
2008-11-03 10:41:39

Well their is something wrong here. Life insurance goes to the

beneficiary. If medicare is involved you have a different


This is a more than common situation, and from my personal

experience, (depending on your situation) this is the best way to

handle it: 1. Is the terminally ill patient coherent>>?? If

so, does a Doctor agree that this person is able to make sound mind

decisions? 2. If so, just because you are listed as a beneficiary

on a life insurance policy does not mean you will receive the money

in the event of a death. Immediately get the correct documents (can

be found on the Internet and printed out for free) stating exactly

whom is a beneficiary (or multiple people) and all other specifics.

Have a notary to come to the nursing home while you are present

with the terminally ill patient. Sign all documents and a) take the

docs to an attorney to hold OR b) give them to someone responsible

to hold until the event of a death. Then send all information to

the Insurance Company. 3. In addition, the Insurer will need to

write out all persons that will not receive benefits, and people

who will. Once all heirs are contacted legally (meaning people who

will and will NOT receive money and/or goods), through an attorney

only) then a 120 day probation period begins for persons to appeal.

If no one appeals decisions of who the inheritance is going to,

then case closed. If person(s) do, then court is the next option.

If you DO NOT get at least the above done, then chances of the

State you reside in taking over the benefits is most likely to

happen. You will have to fight to get them, and you may only end up

with much less than half of the original amount. Good luck. Yes.

Policies with named beneficiaries are not subject to seizure by the

deceased creditors (including Medicare or Medicaid) nor do they

become a part of probate procedure.

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