My FIL has 2 life insurance policies. An elder care attorney told us to cash them in if they have cash value. We have checked and both of the policies cannot be cashed in, they only pay upon FIL's death.
My first question is: when he ehausts his money/assets and goes on medicaid does the state collect the value of the policies upon his death to be reimbursed for his expenses?
Second question: if these are not allowed to be attached by the state and my husband receives the value of the policies, is he responsible for the premiums (because FIL will have little money left for personal expenses). The first policy is through the veterans and is over $700 a year premium for a 10K policy and the other is over $800 a year premium for a 7K policy.
My husband is questioning if he has to pay these premiums out of pocket if it will benefit him to do so. If if just ends up going back to pay medicaid, I am guessing our only option is to drop them. One feels bad doing that because it seems like all the premiums paid over the years have just been wasted.