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Example 1 - Dollar for Dollar Policy: An individual purchases a dollar-for-dollar ILTCP policy which provides initial policy benefits of 100,000. She enters a nursing facility, and the policy pays out a total of $109,000 (benefits increase due to inflation provision). She then applies to Medicaid and her resources are as follows: • Irrevocable funeral trust $4,000 (exempt) • Certificate of deposit $50,000 • Life insurance cash value $15,000 • Stocks $25,500 • Mutual Funds $20,000 • Total Resources $110,500 • ILTCP disregard $109,000 Countable resources $1,500 Resource Limit $2,000 The applicant is resource eligible.

Example 2 - Dollar for Dollar Policy: An individual purchases a dollar-for-dollar ILTCP policy which provides initial policy benefits of $100,000. She enters a nursing facility, and the policy pays out a total of $109,000 (benefits increase due to Inflation provision). She then applies to Medicaid and her resources are as follows: • Irrevocable funeral trust $ 4,000 (exempt) • Certificate of deposit $50,000 • Life insurance cash value $18,000 • Stocks $25,500 • Mutual Funds $20,000 • Total Resources $113,500 • ILTCP disregard $109,000 Countable resources $4,500 Resource Limit $2,000 The applicant has excess resources, so the application is denied.