My in-laws are still in their home and are in their late 80's. If one or both of them has to go to a Nursing Home, they will need to be on and will qualify for Medicaid. They own half of a duplex, don't own a car, have a decent income stream, but very little savings - less than $10,000. They do have small life insurance policies, husband has a $10,000 policy, wife has a $6000 policy, the beneficiaries are each other. Wife has little to no memory and no financial input. Husband has some cognitive impairment and is very resistant to change, The question is, if one of them were to be admitted to a Nursing Home using Medicaid for most of the cost and the spouse at home were to die, what happens to the life insurance payment? Also, if the nursing home resident were to die, we have the same question. This is basically their burial insurance, so if the nursing home were to seize it, the children would need to pay for the funeral expenses.