How Can My Girlfriend Leave Me Her Life Insurance Without Affecting My Medicaid Benefits?

 In Special Needs Planning
life insurance and Medicaid

Photo by Scott Graham on Unsplash


I am on SSDI and have Medicare and Medicaid. My girlfriend has me as a beneficiary on her life insurance policy through her job. Would I lose that money if she died because I’m on Medicaid? Also, I would like to get my own life insurance policy. If I get term insurance, what would be the limit I could leave for her?


Your receipt of the life insurance benefits will not affect your Social Security Disability Income (SSDI) or Medicare, but depending on the state you live in and your age it could make you ineligible for Medicaid until the proceeds are spent down. This is because in many states the asset limit for Medicaid eligibility is just $2,000. Your girlfriend could leave you the insurance in trust, in which case it would not affect your Medicaid eligibility. There are some costs to setting up a trust, but there are many non-profits that could provide this service for a relatively low fee. You can find one in your area here:

In terms of you buying a life insurance policy for your girlfriend should you die before her, there’s no limit since she’s not receiving benefits and a term policy has no cash value — just whatever you can afford.

Related Articles:

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Does My Daughter Need a Special Needs Trust If She’s Receiving SSDI?

What Happens to Medicaid When You Switch from SSI to SSDI?

Will Retirement Funds in a Trust be Protected When the Beneficiary Applies for Medicaid?

How Can I Help My Son and His Family Without their Losing Medicaid?


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