They don't "take" it as u say. If you have an insurance policy with a cash in value, they will ask you to cash it in. It can be used to prepay your funeral as any other assets u have. All assets, except a home, have to be liquidated. Those assets then have to be spent down before Medicaid will pay for your care. They will do a five year look back. If you cash the insurance in and its used for you care and living expenses than no problem. You cannot give it away. Like giving any of it as a large gift. That will cause a penalty with Medicaid.
With my Mom, she paid 2 months of her care in a NH, that spent her down and then Medicaid took over.
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With my Mom, she paid 2 months of her care in a NH, that spent her down and then Medicaid took over.
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