You can purchase a Single Premium Immediate Annuity (SPIAs) with a single deposit amount or any other form of immediate annuity with regular payments at specified intervals. In either case, you start receiving regular monthly payments almost as instantly as within 30 days of depositing the full amount with the insurance company. The amount of money you will receive from the annuity will be based on the initial premium deposit, the length of time the annuity is spread across, and the guarantees offered by the insurance company. The rate of return from the immediate annuity can be fixed or variable, that is, it will depend on the performance of the selected investments the annuity is based on. You can arrange to receive the payments in a variety of ways, but is an immediate annuity any match for the Medicaid insurance? If you are not sure, let’s look at the pros and cons and the details on immediate annuities and Medicaid, here.

Immediate annuities can be of advantage in many ways. They are secured, simple to understand, ensure higher returns, and defer tax payments. It provides a regular and stable income over a specified period, even till death. But over and above everything, a huge advantage of immediate annuities derives from their ability to qualify you immediately for Medicaid benefits. The attached condition for this mechanism to operate is, however, if the annuitant is single, she or he should hold assets for an amount that is more than $2,000. If you are married, you can of course use this benefit or transfer it to your wife, if you have an asset of more than $95,100.

If you own an immediate annuity, it can legally convert your physical assets to another annuity or a form of insurance that can ensure a regular income stream for you or your spouse. For this method to function, the annuity period in your annuity contract should not exceed your life expectancy as estimated by the Medicaid Tables. Another important requirement is that you select your investments dealers or agents well and wisely. All annuity or insurance firms are not expert at reviewing or handling such annuities or are aware of the Medicaid guidelines.

AnnuityLibrary.com suggests the few other requirements for your immediate annuity to be transformed into a Medicaid tool:

If you have any question about immediate annuities and Medicaid, you can Click here or call toll-free at 1-800-998-4056 to consult the experts at the AnnuityLibrary.com.