Can A Nursing Home Take A Life Insurance Policy? 
If you have Term life insurance , there is no cash value in it to count as an asset in a Medicaid spend down . If you have Whole or Universal life insurance with a large amount of cash value , it may or may not exceed cash value limits of policies that you can keep while entering a nursing home with Medicaid funds . Your social worker will tell you . If your policy does have high cash value , there is a law that allows you to retain some of the death benefit and use your cash to pay for your nursing home care . Or , you can transfer ownership of your policy to someone else , if it will be at least 5 years before you need to use long term care , and if you do not have the resources to pay for it in other ways . The nursing home will not take your life insurance policy . It will be evaluated along with all your assets , if Medicaid is needed . 