Does Medicaid count an insurance policy (face value $1000) owned by me on her as an asset?

Live in MI a guardian for handicapped sister. Auguring with caseworker about this little policy I am policy holder and beneficiary Policy face value is $1000 taken out in 1955 for my handicapped sister who we have guardianship over. Everything I read the policy is not her asset and should not be included as such. Hate dealing with those caseworkers............Thanks.......Jim