My mom is currently on SLMB in Texas and receives yearly renewals through Medicaid for that. She would like to cash in a life insurance policy. What is the correct procedure to handle this?

Hello, my Mom is currently on SLMB in Texas, since 2015 and receives yearly renewals through Medicaid (TX) for that. My question is she is interested in cashing in a life insurance that has a cash surrender value of $2,770.00. Dose any one know the correct procedure to handle this if she were to cash in her life insurance? Dose she have to notify Medicaid if she were to do this, and would this affect her SLMB assistance she receives in Texas?