Department of Social Services
Family Support Division
PO Box 2320
Jefferson City, Missouri
TO: ALL FAMILY SUPPORT OFFICES
FROM: REGINALD E. McELHANNON, INTERIM DIRECTOR
SUBJECT: LIFE INSURANCE – MO HEALTHNET FOR THE AGED, BLIND, AND DISABLED (MHABD) MANUAL REVISION
MANUAL REVISION #109
The revised MHABD manual section 1030.020.05 Life Insurance discusses updated policy regarding how to apply the cash surrender value (CSV) of a life insurance policy.
If a participant transfers ownership of his/her life insurance policy, staff must determine if an improper transfer of assets has occurred. Information regarding the transfer of assets policy can be found in MHABD Manual Section 1040.000.00 Transfers of Property.
MHABD manual section 1030.020.10.20 discusses changes in policy regarding Assigning Life Insurance to Fund Pre-Need Burial Contracts.
Ensure that separate entries are made in the electronic case record for the life insurance policy and the pre-need burial contract.
Please note that funds remaining from the life insurance policy that funded the irrevocable pre-need burial contract, that were not spent on the participant’s burial will be claimed by Estate Recovery, up to the amount expended for public assistance for the individual. It is the funeral home’s responsibility to notify the Cost Recovery Unit that there are remaining funds.
- Review this memorandum with appropriate staff.