Can Medicaid Take My Life Insurance? 
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 . 