Page 33

Louisiana Medicaid Eligibility Manual Eligibility Factors

Reissued June 9, 2026

Page 33 of I-1630 Replacing September 23, 2024

Revised/added text indicated by underscore

Deleted text indicated by “**”

- By letting the dividends accumulate, and

• Usually has a cash surrender value after the second year.

Term Life

Term life insurance:

• Provides protection only for the months or years that the premium is paid, and

• Accumulates no countable cash surrender value.

Determining Countable Value

Do not count life insurance which has no potential cash surrender value in determining total countable resources.

For policies owned by the applicant/beneficiary, total the face values of all policies with cash surrender value for each insured:

• If the total face value of all life insurance policies on an insured person does not exceed $1,500 ($10,000 for Non- MAGI Related Medically Needy program, MPP, and the special income level group [LTC, individual in a medical institution for at least 30 days or receiving waiver services for 30 consecutive days]), then no part of the CSV of any such policy or policies shall be counted as a resource.

• If the total face value of all life insurance policies on an insured person exceeds $1,500 ($10,000 for Non-MAGI Related Medically Needy program, MPP, and the special income level group [LTC, individual in a medical institution for at least 30 days or receiving waiver services for 30 consecutive days]), then the cash surrender value of all such policies must be counted as resources.

Examples: Owner has three policies on herself Mrs. Lambert, an aged individual, owns three life insurance