10 Best Life Insurance Companies That Sell Medicaid-Qualified Annuities in 2025 (Our Top Picks)
The best life insurance companies that sell Medicaid-qualified annuities are AIG, TIAA, and AARP. AARP rates start at $35/mo. These insurers provide reliable Medicaid-compliant annuities, making them a top choice for individuals seeking for long-term financial planning.
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Chris Abrams
Licensed Life Insurance Agent
Chris is the founder of Abrams Insurance Solutions and Marcan Insurance, which provide personal financial analysis and planning services for families and small businesses across the U.S. His companies represent nearly 100 of the top-rated insurance companies. Chris has been a licensed life and health insurance agent since 2009 and has active insurance licenses in all 50 U.S. states and D.C. Chr...
Licensed Life Insurance Agent
UPDATED: Jan 20, 2025
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Editorial Guidelines: We are a free online resource for anyone interested in learning more about life insurance. Our goal is to be an objective, third-party resource for everything life insurance related. We update our site regularly, and all content is reviewed by life insurance experts.
UPDATED: Jan 20, 2025
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident life insurance decisions. Comparison shopping should be easy. We are not affiliated with any one life insurance provider and cannot guarantee quotes from any single provider. Our life insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
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Company Facts
Whole Policy With Medicaid
A.M. Best
Complaint Level


Company Facts
Whole Policy With Medicaid
A.M. Best
Complaint Level

The best life insurance companies that sell Medicaid-qualified annuities are AIG, TIAA, and AARP, with rates starting as low as $110 per month.
These companies are known for their good reputations, financial strength, and solid choices for people looking for Medicaid-compliant annuities. For more details, take a look at the 10 best life insurance companies.
Our Top 10 Picks: Best Life Insurance Companies That Sell Medicaid-Qualified Annuities
Insurance Company | Rank | Bundling Discount | AM Best | Best For | Jump to Pros/Cons |
---|---|---|---|---|---|
#1 | 12% | A | No Exam | AIG | |
#2 | 10% | A++ | Guaranteed Benefits | TIAA | |
#3 | 11% | A++ | Senior Citizens | AARP | |
#4 | 10% | A+ | Low Cost | Banner Life | |
#5 | 15% | A++ | Full Coverage | New York Life | |
#6 | 14% | A++ | Financial Strength | MassMutual | |
#7 | 11% | A+ | Retirement Plan | Pacific Life | |
#8 | 17% | B | Policy Discounts | State Farm | |
#9 | 12% | A++ | Custom Options | Guardian Life | |
#10 | 14% | A+ | Comprehensive Coverage | Lincoln Financial |
AIG is known for offering dependable options, which is why so many people trust it. If you’re looking for good rates or reliable coverage, these companies are great options to help you plan for your financial future.
Simplify your life insurance shopping by entering your ZIP code into our free quote comparison tool and find coverage that fits your budget and needs.
- Top life insurance providers sell Medicaid-qualified annuities at $35/mo
- AIG stands out for its reliable Medicaid-compliant annuity solutions
- Choose tailored annuity options that help meet Medicaid’s strict eligibility rules
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#1 – AIG: Top Pick Overall
Pros
- No Medical Exam Needed: AIG offers policies without a medical exam, which makes it easier for people to apply for Medicaid-qualified annuities.
- Affordable Medicaid Rates: AIG offers Medicaid-qualified annuities starting at just $50 per month, making it quite affordable.
- Bundling Opportunities: Customers can benefit from a 12% discount when bundling Medicaid-qualified annuities with other insurance policies.
Cons
- Higher Whole Policy Rates: AIG’s whole life insurance for Medicaid-qualified annuities starts at $150 per month, which is higher than other providers’ rates.
- Limited Customization: Policy options may lack flexibility for specific Medicaid-qualified annuity needs. Check our AIG Life Insurance Review for more info.
#2 – TIAA: Best for Guaranteed Benefits
Pros
- Reliable Guaranteed Benefits: TIAA provides steady benefits for Medicaid-qualified annuities, giving people peace of mind about their finances and future.
- Affordable Rates: TIAA offers Medicaid-qualified annuities from $45/month, providing an affordable option for many individuals. Look at this TIAA Life Insurance Review for more info.
- High Financial Strength: TIAA holds an A++ rating, making it a trusted choice for people looking for dependable coverage for Medicaid-qualified annuities.
Cons
- Limited Bundling Discount: Offers a 10% discount when bundling Medicaid-qualified annuities, which is lower than that of other providers.
- Higher Whole Policy Rates: Whole life insurance for Medicaid-qualified annuities starts at $130 per month, which could be higher compared to others.
#3 – AARP: Best for Senior Citizens
Pros
- Senior-Friendly Medicaid Annuities: AARP offers insurance policies specifically designed for older adults seeking Medicaid-qualified annuities.
- Affordable Rates for Medicaid Coverage: Medicaid-qualified annuities begin at $35 per month, making them one of the most budget-friendly choices for seniors.
- Strong Financial Background: AARP has an A++ rating, giving it a reputation for trust and dependability, especially for Medicaid-qualified annuities.
Cons
- Limited Coverage Options: AARP offers fewer personalized options for specific Medicaid-qualified needs. Read this AARP Life Insurance Company Review to learn more.
- Moderate Bundling Discount: Provides an 11% bundling discount, which is less competitive compared to other insurers.
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#4 – Banner Life: Best for Low Cost
Pros
- Low-Cost Medicaid Annuities: Banner Life provides affordable Medicaid-qualified annuities, starting at $40 per month for term policies.
- Financial Stability: Banner Life has a high A+ rating. They provide strong financial backing for Medicaid-qualified annuities.
- Simplified Policy Options: Banner Life offers simple, easy-to-understand options, especially helpful for those looking for Medicaid-qualified annuities at a more affordable price.
Cons
- Lower Bundling Discount: A 10% bundling discount is less competitive for Medicaid coverage. Learn more from this Banner Life Insurance Company Review.
- Limited Customization for Medicaid Needs: Fewer add-on options are available for tailoring Medicaid-qualified annuities.
#5 – New York Life: Best for Full Coverage
Pros
- Comprehensive Coverage: New York Life provides strong Medicaid-qualified annuities with lots of coverage choices.
- High Bundling Discount: Provides up to 15% savings when bundling Medicaid-qualified annuities with other policies.
- Strong Financial Strength: New York Life, rated A++, is a reliable provider of long-term Medicaid-qualified annuities. See this New York Life Insurance Review for more info.
Cons
- Premium Whole Policy Rates: Whole life insurance for Medicaid-qualified annuities starts at $160 per month, which is the highest in the category.
- Complex Policy: The extensive range of options might overwhelm those with specific Medicaid coverage needs.
#6 – MassMutual: Best for Financial Strength
Pros
- Strong Financial Background: MassMutual provides Medicaid-qualified annuities with an A++ rating, which is known for being stable and trustworthy.
- Flexible Annuity Options: Rates begin at $50/mo. MassMutual provides Medicaid-qualified annuities that are easy to understand and offer a variety of options to fit individual needs.
- Bundling Discount Advantage: Customers can enjoy a 14% discount when bundling Medicaid-qualified annuities with other policies.
Cons
- Higher Costs: Medicaid-qualified annuities start at $155/month, which is among the highest in the category. See how life insurance works for more info.
- Medical Exam Required: MassMutual requires a medical exam for most Medicaid-qualified annuity policies. This requirement can discourage some applicants from seeking coverage.
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#7 – Pacific Life: Best for Retirement Plan
Pros
- Retirement-Focused: Pacific Life’s Medicaid-qualified annuities help with retirement and long-term care needs.
- Affordable Term Rates: Medicaid-qualified annuities begin at just $48 per month, making it easier for more people to plan for retirement.
- Strong Financial Backing: With an A+ rating, Pacific Life ensures policyholders’ security of Medicaid-qualified annuities.
Cons
- Moderate Bundling Discount: Medicaid-qualified annuities come with an 11% bundling discount, which is less competitive than some alternatives. Read more: Pros and Cons of Term Life Insurance
- Higher Costs: Whole-life Medicaid-qualified annuities start at $140/month, slightly above market averages.
#8 – State Farm: Best for Policy Discounts
Pros
- Generous Bundling Discounts: State Farm offers the highest discount compared to other companies, a 17% discount on Medicaid-qualified annuities when paired with other policies.
- Budget-Friendly Rates: Medicaid-qualified annuities start at $42/month, providing an affordable choice for policyholders.
- Local Support for Annuities: State Farm’s friendly agents back Medicaid-qualified annuities and offer personalized service to meet your needs.
Cons
- Lower Rating: State Farm’s B rating raises concerns about the long-term security of Medicaid-qualified annuities. See details in this “State Farm Life Insurance Review” guide.
- Limited Advanced Features: Medicaid-qualified annuities have fewer customization options compared to other providers.
#9 – Guardian Life: Best for Custom Options
Pros
- Customizable Plans: Guardian Life provides Medicaid-qualified annuities that can be customized to fit individual financial situations.
- Competitive Rates: Medicaid-qualified annuities start at $38/month, making it one of the most budget-friendly choices.
- Superior Financial Rating: With its top-tier A++ rating, Guardian Life offers Medicaid-qualified annuities you can count on for security and peace of mind.
Cons
- Moderate Savings: Medicaid-qualified annuities qualify for a 12% bundling discount, less than top providers offer.
- Higher Costs: Medicaid-qualified whole-life annuities start at $115/month, which may be too costly for some. For more info, see how much whole life insurance costs.
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#10 – Lincoln Financial: Best for Comprehensive Coverage
Pros
- Wide Range of Coverage: Lincoln Financial provides Medicaid-qualified annuities that cover a variety of needs. Check the pros and cons of indexed universal life insurance to learn more.
- Competitive Term Annuity Rates: The Medicaid-qualified annuities start at $48 per month, offering an easy way to weigh what you pay and what you get in return.
- Financial Security: Lincoln Financial, rated A+, provides peace of mind for those investing in Medicaid-qualified annuities.
Cons
- Average Bundling Discount: Medicaid-qualified annuities come with a 14% bundling discount, which is decent but not industry-leading.
- Premium Whole Policy Rates: Medicaid-qualified whole-life annuities start at $135 per month, which could deter cost-conscious buyers.
Understanding Medicaid Annuities for Seniors with Spouses in Long-Term Care
If you’re over 65 with a spouse needing long-term care, Medicaid-qualified annuities can help meet eligibility requirements while safeguarding your spouse’s financial future. These annuities convert assets into income, preserving Medicaid eligibility.
Monthly Life Insurance Rates From Providers That Sell Medicaid-Qualified Annuities
Insurance Company | Term Policy | Whole Policy |
---|---|---|
$35 | $110 | |
$50 | $150 | |
$40 | $120 | |
$38 | $115 | |
$48 | $135 | |
$50 | $155 | |
$55 | $160 | |
$48 | $140 | |
$42 | $125 | |
$45 | $130 |
Medicaid annuities are complex, so working with a specialist is crucial. An expert ensures your decisions align with Medicaid regulations and your financial goals.
Choosing the right life insurance company that sells Medicaid-qualified annuities ensures compliance and financial security, making long-term planning easier.Jeffrey Manola Licensed Insurance Agent
Although few companies offer Medicaid-compliant annuities, some specialize in this area. Researching or consulting with a knowledgeable agent can help you find the best options.
Read more: Life Insurance: Most Frequently Asked Questions
The Best Life Insurance Companies Offering Medicaid-Qualified Annuities
Many people may want to purchase a Medicaid annuity, but not all life insurance companies offer this option. If you have a current policy with a company that provides Medicaid-compliant annuities, it’s a good place to start your search.
Many life insurance companies do not sell Medicaid-qualified annuities, which means they won’t be helpful for protecting your assets in this situation. It’s important to focus on companies that specialize in this area.
Options like a Medicaid friendly annuity provide strategies for asset preservation, while companies like State Farm annuities offer solutions, including State Farm guaranteed income annuities and the State Farm single premium immediate annuity.
Tools like the State Farm annuity rates calculator simplify planning. Additionally, companies for annuities insurance quote services can help compare rates, and State Farm income annuities can offer stability.
Furthermore, you can easily estimate your future retirement income using the State Farm annuity calculator. Before purchasing life insurance with Medicaid annuities, it’s important to conduct thorough research. Ensure the annuity you choose meets Medicaid’s requirements to best protect your assets. Learn more about no exam life insurance.
Understanding Medicaid-Qualified Annuities
A Medicaid-compliant annuity helps married couples when one spouse needs a nursing home or long-term care. It allows the at-home spouse to convert assets into an income stream while protecting their financial resources.
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— Pacific Life (@pacificlife) January 8, 2024
The annuity ensures that the assets used to fund it don’t count against Medicaid eligibility. This allows the at-home spouse to maintain financial security while Medicaid covers nursing home expenses.
Couples often use Medicaid annuities as a last resort, especially when long-term care insurance is not available for the spouse needing care. It offers a way to preserve assets and navigate care costs effectively.
Steps to Obtain a Medicaid Annuity
If you’re considering a Medicaid annuity, it’s crucial to seek guidance from a knowledgeable professional. An elder law attorney, for instance, stays current on the rules and regulations and can help you purchase an annuity that meets all requirements while avoiding potential pitfalls or compliance issues.
Discounts From Life Insurance Companies That Sell Medicaid-Qualified Annuities
Insurance Company | Available Discounts |
---|---|
Membership Discount, Bundling, Safe Driver Discount | |
Loyalty Discount, Bundling Discount, Accident-Free Discount | |
Health & Wellness Discount, Preferred Rates for Non-Smokers, Long-Term Policy Discount | |
Safe Driver Discount, Family Discount, Bundling Discount | |
Loyalty Discount, Bundling Discount, Automatic Payment Discount | |
Preferred Customer Discount, Good Health Discount, Bundling Discount | |
Bundling Discount (Life & Annuities), Long-Term Client Discount, Good Payer Discount | |
Preferred Customer Discount, Safe Driver Discount, No-Lapse Guarantee Discount | |
Multi-Line Discount, Accident-Free Discount, Safe Vehicle Discount | |
Employee Discount, Bundling Discount, Good Health Discount |
Each state has its own Medicaid laws, so working with someone familiar with these rules helps ensure your annuity aligns with the regulations. This approach protects your assets and income while helping you avoid costly mistakes. Additionally, the Medicaid annuity loophole offers legal strategies for asset protection.
Although hiring an expert may involve some expense, it can save you significant trouble in the long run. They can ensure everything is properly timed, such as having the annuity take effect the same day a spouse enters long-term care.
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Purchasing a Medicaid Annuity Can Provide Financial Security
Planning for future healthcare expenses can be challenging, especially when considering options like long-term care annuity providers. Whether or not to buy a Medicaid annuity depends on your situation. Without long-term care insurance, savings can quickly be used up by nursing home bills, so it’s important to prepare for these expenses.
If you have long-term care coverage, an annuity may not be necessary. However, for those without protection, it can be a practical solution. Working with a professional is essential, as Medicaid annuities are governed by state-specific rules. Find out how life insurance works here.
Finding a reliable life insurance company that sells Medicaid-qualified annuities is key to securing financial stability and meeting long-term care needs.Jimmy McMillan Licensed Insurance Agent
An elder law attorney, for example, can ensure the annuity is timed correctly to protect your assets. While there may be upfront costs, professional guidance offers long-term financial security. One useful tool in this process is Medicaid-compliant annuities, which are designed to meet specific federal and state requirements.
Case Studies: Real-Life Examples of Medicaid-Qualified Annuities in Action
Understanding Medicaid-qualified annuities can help you make informed decisions. For more details, view this “Types of Life Insurance: Find the Right Policy for Your Needs” guide.
Case Study #1: AIG’s Affordable Long-Term Care Planning
Mary, 65 years old, worked with AIG to set up an annuity that followed Medicaid rules. It helped protect her spouse’s money while keeping everything affordable.
Case Study #2: TIAA’s Flexible Family Coverage
John, 45, picked TIAA for its great ratings and options that work well with Medicaid. This choice helps keep his family financially safe.
Case Study #3: AARP’s Simplified Guidance for Seniors
Susan, 72, decided to go with AARP to set up an annuity that followed Medicaid rules, which made everything easy and stress-free.
These case studies show how AIG, TIAA, and AARP help people plan for the future. They focus on making their services easy to access while offering support to protect families. Their dedication to personalized solutions gives clients peace of mind and security as they go through different stages of life.
Life Insurance Companies Selling Medicaid-Qualified Annuities
Choosing the best life insurance companies that sell Medicaid-qualified annuities is crucial for securing financial stability and managing healthcare costs. These providers offer tailored solutions to meet individual needs, ensuring peace of mind and long-term protection. Discover what face value in life insurance is.
However, understanding Medicaid annuity rules is crucial, as Medicaid has specific requirements that determine how annuities impact eligibility for benefits. Properly structured annuities and Medicaid planning can ensure that you protect your assets while still qualifying for essential government assistance.
By choosing the right provider, individuals can secure a Medicaid-compliant annuity that fits their unique needs and ensures peace of mind. Proper research and careful consideration will lead to a provider that aligns with your goals and offers the support you need. If you need life insurance coverage, enter your ZIP code into our free tool to save time and money.
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Frequently Asked Questions
Why are AIG, TIAA, and AARP top providers for Medicaid annuities?
AIG, TIAA, and AARP are trusted for their competitive options, financial stability, and expertise in providing reliable Medicaid-qualified annuities. Many companies specializing in Medicaid-compliant annuities design their products to meet government regulations, such as Medicaid-compliant or Medicaid-approved annuities, helping individuals preserve assets while qualifying for benefits.
Can I use a Medicaid-qualified annuity for long-term care planning?
Yes, these annuities help secure Medicaid eligibility while providing a steady income for long-term care needs. Whether you’re considering a Medicaid-friendly annuity or even a Medicare annuity, the key is finding a solution that fits your unique situation. Compare term life insurance rates by entering your ZIP code into our free tool today.
What is a Medicaid-qualified annuity?
A Medicaid-qualified annuity converts assets into an income stream, helping individuals qualify for Medicaid while preserving resources for long-term care. When planning for long-term care and protecting assets, understanding who sells Medicaid-compliant annuities is essential. Learn where you can buy life insurance.
How does a Medicaid-qualified annuity help with eligibility?
It reduces your countable assets by converting them into income, allowing you to meet Medicaid’s asset limits for long-term care eligibility. Various Medicaid-compliant annuity providers offer options such as Medicaid-compliant annuities or Medicaid-approved annuities, which can help meet eligibility requirements.
What is a Medicaid annuity?
A Medicaid annuity converts assets into a regular income stream to help individuals meet Medicaid eligibility requirements. It allows them to reduce countable assets while ensuring income continues for long-term care needs, often with state involvement to recover costs after death.
How do I choose the right life insurance company for a Medicaid-qualified annuity?
Consider the company’s financial strength, reputation, and available annuity options. AIG, TIAA, and AARP are reliable choices. For those exploring the Medicaid annuity loophole, understanding what constitutes a Medicaid-compliant annuity is critical. For more information, review dos and don’ts of life insurance.
What is a Medicaid-compliant annuity?
A Medicaid-compliant annuity is a financial product that converts a lump sum into a guaranteed income stream, helping individuals meet Medicaid’s strict asset and income limits. Additionally, Medicaid-compliant annuity companies offer a variety of options designed to meet the strict requirements set by Medicaid.
What are the key requirements for a Medicaid-qualified annuity?
A Medicaid-approved annuity is specifically structured to comply with Medicaid rules, ensuring that your income and resources are properly managed. It must be irrevocable, non-transferable, and structured to provide lifetime payments. Additionally, a Medicaid-compliant annuity for a single person ensures financial security while adhering to Medicaid requirements.
Is there a minimum age for purchasing a Medicaid-qualified annuity?
For individuals looking for reliable options, it’s important to understand who sells Medicaid-compliant annuities. While there’s no strict minimum age, these annuities are more beneficial for older individuals, as they’re structured to provide lifetime income.
Read more: Life Insurance Cost by Age: How Your Age Impacts Life Insurance Premiums.
What are the benefits of choosing AIG for a Medicaid-qualified annuity?
AIG offers competitive rates, flexible options, and strong financial stability, making it a top choice for Medicaid-compliant annuities. Explore affordable life insurance options by entering your ZIP code into our free comparison tool today.
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Chris Abrams
Licensed Life Insurance Agent
Chris is the founder of Abrams Insurance Solutions and Marcan Insurance, which provide personal financial analysis and planning services for families and small businesses across the U.S. His companies represent nearly 100 of the top-rated insurance companies. Chris has been a licensed life and health insurance agent since 2009 and has active insurance licenses in all 50 U.S. states and D.C. Chr...
Licensed Life Insurance Agent
Editorial Guidelines: We are a free online resource for anyone interested in learning more about life insurance. Our goal is to be an objective, third-party resource for everything life insurance related. We update our site regularly, and all content is reviewed by life insurance experts.