It is never easy to lose a loved one. It's even more difficult if you're in charge of planning the funeral and memorial services in addition to grieving. Making funeral arrangements can be emotionally and financially draining if there is no life insurance or savings to help cover costs. The good news is that if you qualify for Medicaid, your state may provide financial assistance to cover funeral costs. You should look into cremation services in Norwood, OH to learn more.
Funeral costs may include service fees, an urn or casket, embalming, transportation, preparation fees, memorial costs, and other costs. While these costs can quickly add up, it's worth noting that some states provide financial assistance for funerals for people on Medicaid.
Benefits for Funeral Expenses Under Medicaid
Medicaid is a federal and state assistance program that assists those with limited income and resources with healthcare costs. Funerals are one of these costs for those who meet certain criteria.
Because Medicaid funds are managed by the states, what is and isn't covered by Medicaid, as well as the extent of coverage, varies depending on where you live. Some states provide financial assistance for funeral and burial or cremation expenses through government agencies that assist Medicaid recipients.
Because benefits vary by state, it's critical to check with your local Medicaid office to learn about your specific benefits. To learn more, contact your state Medicaid department, a local Medicaid office, or a local attorney. You may be required to meet certain criteria, such as using a specific group of funeral homes. Alternatively, the funds may only be used for certain aspects of the funeral or burial.
Using Medicaid to Save Money for a Funeral
Furthermore, Medicaid recipients can save money in a separate account or prepay a funeral home if they wish. These funds are not accounted for when determining eligibility for benefits, and interest earned does not count as a resource.
States typically provide three options for doing so.
- Sign a binding contract with a funeral home. This means that it cannot be canceled or refunded.
- Enter into a revocable contract for an unlimited amount, which can be canceled if the funds are returned to the state. This would occur if you required Medicaid to cover your medical or long-term care costs and all of your other assets were depleted.
- Purchase one or more individual life insurance policies.
You can also set up an irrevocable trust to protect the money you save and use it to cover long-term care costs if necessary. If you decide to set up a trust, you should consult with a trust and estate attorney to ensure you're doing everything correctly and to get advice on the best way to go about it.
They can also assist you in understanding the Medicaid rules. For example, to be eligible for funeral payments under Medicaid rules, the trust must have been in existence for at least five years.
Keep in mind that your funeral will not be your only final expense. You may also have long-term care or medical expenses that must be covered, which your life insurance policy or savings can help with. The cremation services in Norwood, OH can provide you with all of the assistance that you require. Please contact us right away or come and see us.