De Pere, Wisconsin—Krause Financial Services (KFS), the exclusive provider of short-term Medicaid Compliant Annuities with two to 23-month terms, is affirming its commitment to carrying these products, which are critical tools for seniors facing a health emergency that requires immediate admission to a long-term care facility.

 

Another esteemed carrier in the industry, National Guardian Life (NGL), recently announced that it has made a business decision to discontinue its Single Premium Immediate Annuity offerings. Elder law attorneys and other planning professionals will no longer be able to purchase these products from NGL as of May 15, 2021.

 

“Krause has partnered with the best insurance carriers in the industry to ensure those who support elderly clients will continue to access short-term Medicaid Compliant Annuities without interruption and without delay,” said KFS Founder and CEO Dale Krause. “As always, we are committed to helping agents, attorneys and their clients identify the precise annuity to suit their financial and long-term care needs.”

 

A valued component of successful crisis Medicaid planning, a Medicaid Compliant Annuity is a single premium immediate annuity that contains zero cash value and provides income to the owner. Properly structured, this annuity functions as a spend-down tool that eliminates excess countable assets, allowing the nursing home resident to become eligible for Medicaid benefits without being forced to become impoverished. Medicaid Compliant Annuities can be ideal for a client who is:

 

  • Residing in a nursing home that accepts Medicaid.
  • Paying out-of-pocket for care.
  • Has exhausted Medicare or long-term care insurance benefits.
  • Has excess countable assets that are preventing them from receiving the help they need.

 

For those professionals whose clients have existing contracts with NGL, the existing contract will remain in force in accordance with the initial contract provisions provided at the time of purchase. In other words, the contract will remain unchanged and NGL will continue making payments to that existing client until they pass away or until the contract terminates. KFS will continue to provide administrative support on NGL contracts that were purchased through Krause. Those administrative tasks include changes of address, changes of direct deposit information, and the filing of death claims. KFS will continue to accept requests for NGL annuities until May 14, 2021.

 

KFS also strongly encourages practitioners to reach out to their Krause Benefits Planner for help finding the perfect carrier for their client’s situation.

 

“We are committed to this product, which we view as a critical component of helping older people accelerate their Medicaid eligibility while maintaining financial stability for themselves and their families,” said Dale Krause. “In short, we have your back!”