Many people who are planning on getting Medicaid assistance also prepare to protect their assets from being used up. They may be thinking of making sure that their spouse would be taken care of in their absence. They may also be preparing for the welfare of a child with disability or other valid reasons. Medicaid friendly annuities are usually availed of to protect their assets and prepare for the worst.

A number of people, mostly providers, know that specific kinds of annuities can prevent depletion and provide protection for peoples assets. These annuities have particular terminologies that make them Medicaid friendly under specific guidelines. Other annuity policies are not eligible since they do not have these specific terms and words.

An individual can avail of annuities that will provide a monthly payout for their life expectancy. This annuity contract must be definite and agreed upon by all groups concerned where the amount will be the monthly income of the recipient. Sometimes called “the name on the check rule”, this is permitted in 29 states of the United States and is essentially included in the contract