If I have life insurance with cash surrender value and I go into a nursing home, will that policy have to be cashed in to help pay for my care? Usually, the answer is yes, unless you have other assets which can be spent to pay for those services. Many people believe that their life insurance will be available to pay for funeral and burial, but if the cash value is used to pay for nursing home care, the policy will disappear. This should be discussed with your estate planning attorney.
-Attorney Jack N. Alpern