When you apply for Medicaid, a representative of the US Dept of Health and Human Services will meet with you to determine your eligibility. There is a limit on how much income you can have, and also a limit on the amount of assets you have, in order to qualify for Medicaid.
Your assets do include any cash value life insurance policies that you own. If you have Term insurance, it will not be counted, because there is no cash value in Term life insurance.
If your cash value in Whole or Universal Life exceeds a certain amount, you have some options. You may be able to designate it for your funeral expenses. Or you may be able to use the cash value for long term care expenses and keep at least part of the death benefit. Your social worker will help you with your Medicaid spend down, but you can also contact a reputable life insurance agent or attorney to assist you.
Typically, Medicaid cannot take your life insurance policy. If you have a large cash value policy, such as whole life insurance or universal life insurance, the cash value is considered an asset and could keep you from qualifying for Medicaid, but they cannot take your policy away. The policy you own is a contract between you and the life insurance company you purchased it from and no one can take that away from you.
If you own a term life policy with no cash value, then Medicaid will not consider it an asset and it is irrelevant to your qualifying.
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Your assets do include any cash value life insurance policies that you own. If you have Term insurance, it will not be counted, because there is no cash value in Term life insurance.
If your cash value in Whole or Universal Life exceeds a certain amount, you have some options. You may be able to designate it for your funeral expenses. Or you may be able to use the cash value for long term care expenses and keep at least part of the death benefit. Your social worker will help you with your Medicaid spend down, but you can also contact a reputable life insurance agent or attorney to assist you.
If you own a term life policy with no cash value, then Medicaid will not consider it an asset and it is irrelevant to your qualifying.