There are limits on how much cash value can be in a Whole or Universal Life insurance policy in order to not exceed Medicaid asset guidelines. Term life insurance is not counted as an asset at all, since there is no cash value in Term insurance.
If you do have a permanent policy with thousands of dollars of cash value, you have a number of choices. You can transfer ownership, but if entering a nursing home now, that will not protect it. You can possibly change it to a funeral policy, which is allowed. Or you can legally use the cash value to pay for nursing home care while holding onto some of the base coverage. Your social worker and life insurance agent can work together to make this the most favorable situation for you.
.JPG){kind=avatar}
If you do have a permanent policy with thousands of dollars of cash value, you have a number of choices. You can transfer ownership, but if entering a nursing home now, that will not protect it. You can possibly change it to a funeral policy, which is allowed. Or you can legally use the cash value to pay for nursing home care while holding onto some of the base coverage. Your social worker and life insurance agent can work together to make this the most favorable situation for you.