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When my husband dies can any of the life insurance go toward a funeral?


Whole life policy and medicaid. $10,000 face value with $2000 cash value


Also, the NH also already has a copy of his ins policy. Can he get a cash value loan or surrender his policy now. And if he does will that upset Medicaid? There are no other assets.

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He is on Medicaid? If so, wasn't Medicaid made aware of the policy when you applied? Did the NH help you with the application?

Is this policy designated for funeral expences? Meaning does it read that the money is to be used for husbands funeral. If so, Medicaid won't touch it. If not, it should be cashed in and the 2000 could be used towards a prepaid funeral or his care. Actually, any of his spend down money could be used for a prepaid funeral.

If the NH helped you with the application, ask them if the insurance info was included on the application. If so, why weren't you asked to cash it in. Or if not included, why? Maybe in your state they don't worry about that small amount.
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Reply to JoAnn29
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If it were me, I'd ask Medicaid direct.

But in general, funeral expenses come first and, yes, a life insurance payout could be used to pay them. The balance would then, I imagine, go to Medicaid as a partial reimbursement.

The one thing you mention that rings alarm bells is the idea of a cash value loan. Why on earth would he want to do a thing like that? Medicaid is already covering the NH fees, yes? - so is anyone asking for money right now?

Fortunately there are lots of people on the forum who are very knowledgeable about Medicaid - fingers crossed they'll be along with answers shortly.
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Reply to Countrymouse
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