If I go into a nursing home and still own life insurance, will my family ever receive the death benefit of the policy? It depends. If the policy is permanent insurance (that is, whole life, universal life, etc.) and it has cash value, you will be required to withdraw the cash value and use it to pay for a nursing home before Medicaid will pay for your care. Your policies and other assets should be reviewed with your estate planning attorney.
-Attorney Jack N. Alpern