Jeffrey Manola is an experienced life insurance agent and the founder of Top Quote Life Insurance. His mission when he created Top Quote Life Insurance was to provide online consumers searching for life insurance with the absolute best quotes for term life insurance, permanent life insurance, no medical exam life insurance, and burial insurance. Not only does he strive to provide you with the ...

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Leslie Kasperowicz holds a BA in Social Sciences from the University of Winnipeg. She spent several years as a Farmers Insurance CSR, gaining a solid understanding of insurance products including home, life, auto, and commercial and working directly with insurance customers to understand their needs. She has since used that knowledge in her more than ten years as a writer, largely in the insur...

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Reviewed by Leslie Kasperowicz
Farmers CSR for 4 Years

UPDATED: Oct 29, 2021

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Facts You Should Know

  • Medicaid annuities are only sold by a few life insurance companies
  • Certain requirements must be met for a Medicaid-qualified annuity
  • Regular annuities are not the same and will count as income

Many elderly people don’t have long-term care insurance and rely on Medicaid to help pay for a care facility.

Many of the best life insurance companies offer a variety of different coverages and annuities. However, life insurance companies that sell Medicaid-qualified annuities are hard to find.

Shop around to find the most affordable life insurance companies that sell Medicaid-qualified annuities. Each company will offer different coverages and rates so compare multiple options to find your best deal.

Enter your ZIP code now to compare free quotes from life insurance companies that sell Medicaid-qualified annuities in your area.

What life insurance companies sell Medicaid-qualified annuities?

Nursing home residents’ life insurance can be expensive, not to mention the cost of just staying in a nursing home.

Long-term care is very expensive, and many older people don’t have insurance in place to handle those costs.

According to Medicaid.gov, Medicaid spending is more than $550 billion a year, and 20% of that goes to long-term care.

Medicaid is usually income-based and takes into account any savings a couple may have.

For example, if a couple has a large amount of money in a savings account, they would have to spend that before Medicaid would start.

A Medicaid annuity allows one spouse to maintain an income while the other spouse relies on Medicaid to pay for long-term care.

However, there are only a few life insurance companies that offer Medicaid-qualified annuities.

Medicaid compliant annuity companies include Allstate, Allianz Life, ELCO Mutual Life & Annuity, Genworth Financial, MetLife, and Nationwide.

Purchasing a Medicaid annuity allows a couple to not have to spend all of their savings to pay for long-term care for one of them.

A Medicaid annuity doesn’t count as an asset that can allow the nursing home resident to meet income requirements for Medicaid.

Some states see this as a Medicaid annuity loophole and don’t allow Medicaid qualified annuities. Keep in mind, each state makes its own rules and can change them at any time.

A Medicaid annuity calculator can help you determine how much of your savings needs to be used to buy a Medicaid annuity.

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What are the requirements for a Medicaid-qualified annuity?

Not all annuities are exempt from Medicaid calculations. In order to qualify as a Medicaid annuity, certain requirements must be met.

Medicaid-qualified annuities must:

  • Be assigned to a single person and not be transferable
  • Income payout and term must be based on the annuity owner’s life expectancy
  • Have no cash value
  • Not allow balloon payments and payments must be distributed evenly
  • Medicaid must be the beneficiary
  • Meet all Medicaid state guidelines

Your Medicaid qualified annuity must be solely in your name, can’t be transferred, and must have even payments over your lifetime.

If there is any money left in the annuity when the annuity owner dies, the money is returned to Medicaid.

Experts recommend that you use an elder care attorney in your state to make sure all state and federal guidelines are met when buying a Medicaid qualified annuity.

Life Insurance Companies that Sell Medicaid-Qualified Annuities: The Bottom Line

Life insurance companies that don’t sell Medicaid-qualified annuities are more common, but you can find Medicaid annuities from several companies.

Medicaid annuities allow one spouse to have income if the other spouse needs Medicaid to pay for long-term care.

Find the best Medicaid-qualified annuities by comparing multiple companies for the best deal.

Enter your ZIP code to compare rates from life insurance companies that sell Medicaid-qualified annuities near you for free.