This optional step is most often utilized for Medicaid eligibility
When you purchase a Precompose plan, the funds are placed into an annuity contract with our insurance partner or an insurance policy. By default, the plan is marked “revocable.”
You have the option to make your Precompose plan “irrevocable,” which means Medicaid cannot take funds from the plan if you are in treatment and your other assets have been depleted. Similarly, creditors cannot reach these funds.
If you request Medicaid benefits or have creditors seeking to take your assets, it is recommended to make your Precompose policy irrevocable.
You may convert your policy to an irrevocable policy at a later date by updating the policy to satisfy Medicaid asset-spend-down requirements. Reversing the irrevocable policy is not possible. An irrevocable policy also waives your right to withdraw, cancel or seek refund. However, if for any reason your death care wishes change, you may designate your irrevocable plan to another funeral home that accepts funeral insurance.
Your purchase of a Precompose plan does not violate the look-back period, which states an individual cannot transfer assets within a certain time of qualifying for Medicaid (the period includes the previous 60 months in most states). Medicaid benefits vary by marital status and by state and can change each year.
Other benefits may also be impacted by your purchase of a Precompose insurance policy, including Supplementary Security Income. Please consult Medicaid.gov, your state’s Medicare provider, and your benefit administrator to confirm how establishing a funeral insurance policy may impact your eligibility.
If you have questions about making your Precompose plan irrevocable, please contact us at precompose@recompose.life and a member of our team will get back to you shortly.