Transform Your Life Insurance Policy into Protected Assets
Can you convert life insurance to qualify for Medicaid in Wisconsin? Yes! The non-term life insurance policy you've been paying premiums on for years can be converted into a Medicaid-exempt asset with the right planning. Refi Trust offers a strategic solution to convert your existing life insurance into a protected asset and safeguard your financial legacy.
Why Your Life Insurance Policy Might Be At Risk
Many seniors don't realize their cash-value life insurance policies can affect Medicaid eligibility in Wisconsin.
What are the Medicaid rules on life insurance in Wisconsin? Any policy with more than $1,500 in cash value is considered a countable asset. This can put your Medicaid eligibility and long-term care security at risk. Common concerns include:
- Rising Premium Costs: As you age, premium payments on non-term policies often increase substantially, straining retirement income
- Medicaid Countable Asset: Wisconsin Medicaid counts cash value above $1,500 as an available resource, requiring spend-down
- Forced Liquidation: Nursing home expenses may force you to surrender policies at reduced values
- Estate Recovery Exposure: After death, Medicaid may claim policy proceeds to recover care costs
The cash value you've accumulated—sometimes $10,000 to $100,000 or more—represents a significant asset and deserves protection. Without proper planning, this investment may be lost to Medicaid spend-down requirements or long-term care costs.
Strategic Asset Reallocation for Wisconsin Seniors
Knowing how cash value life insurance affects Medicaid eligibility in Wisconsin can help you make timely changes and preserve benefits. Effective asset protection requires understanding which resources are vulnerable and which can be restructured:
| Vulnerable Assets in Wisconsin: | Protected Assets Categories |
 Cash and bank accounts over $2,000 ($3,000 for couples) |
Primary residence (up to $750,000 equity) |
| Investment Portfolios and retirement accounts (with limitations) |
Personal belongings and household goods |
| Secondary properties and rental real estate |
Irrevocable funeral trusts (up to $15,000 immediately) |
| Cash value life insurance (countable over $1,500) |
Specific annuities meeting Medicaid requirements |
| Vehicles beyond primary transportation |
Spousal resource allowances (up to $157,920) |
Our zero-fee asset protection consultation identifies which assets you can protect and when to convert life insurance for Medicaid planning in Wisconsin for maximum benefit.
The Refi Trust Life Insurance Conversion Process
Refi Trust offers a simple, four-step process to help you transfer your life insurance policy to an irrevocable funeral trust in Wisconsin, creating immediate protection and full Medicaid exemption:
- Comprehensive Policy Review: • Professional analysis of your current policy's cash value
• Evaluation of premium obligations and future projections
• Assessment of potential Medicaid implications
• Identification of conversion opportunities - Strategic Conversion Planning: • Customized plan to maximize protection
• Documentation preparation for seamless transfer
• Coordination with insurance companies
• Alignment with other estate planning measures - Protected Asset Establishment: • Creation of an irrevocable funeral trust with insurance backing
• Immediate protection of up to $15,000 per person
• Extended protection of up to $100,000 over five years
• Complete exemption from Medicaid calculations - Ongoing Asset Security: • Zero maintenance fees or additional costs
• Guaranteed availability for funeral expenses
• Protected status against creditors and Medicaid
• Return of unused funds to your estate
Compare: Life Insurance vs. Funeral Trust Benefits
| Feature | Cash Value Life Insurance |  Funeral Trust |
| Medicaid Protection | Counted as an available asset | Fully exempt asset |
| Premium Payments | Ongoing, often increasing | Eliminated entirely |
| Asset Protection | Vulnerable to creditors | Protected from creditors |
| Estate Recovery | May be subject to claims | Protected from recovery |
| Tax Treatment | May have taxable components | Tax-advantaged structure |
| Funeral Expense Coverage | Depends on the beneficiary's decisions | Guaranteed availability |
| Estate Return | Subject to probate | Unused funds return to the estate |
| Service Fees | Annual policy fees | Zero service fees |
| Funeral Cost Coverage | Possibly, based on the beneficiary | Yes, guaranteed |
Ready to Secure Your Life Insurance Investment?
Don't let your years of premium payments go to waste. Contact Refi Trust today for a free, no-obligation consultation to learn how we can help convert your life insurance policy into a Medicaid-exempt asset in Wisconsin.
Secure Your Future Now Call 414-244-9444
Refi Trust is located at 1200 N Mayfair Rd, Wauwatosa, WI 53226. We specialize in asset protection and converting life insurance policies for Medicaid planning throughout Wisconsin.