If you have a parent in a nursing home, you’re likely facing a lot of difficult decisions and stressful situations. It’s natural to feel overwhelmed, but it’s important to remember that you have options and resources available to you. One question that often comes up is whether the nursing home can take a loved one’s life insurance policy. Let’s dive into this issue and provide some empowering advice.

Life Insurance vs. Long-Term Care Insurance

First things first: it’s important to understand the difference between a life insurance policy and a long-term care insurance policy. A life insurance policy pays out a lump sum of money to your beneficiaries when you pass away. A long-term care insurance policy, on the other hand, helps cover the costs of long-term care, such as nursing home care.

The Question at Hand: Can the Nursing Home Take Your Loved One’s Life Insurance?

Now, let’s address the question at hand: can the nursing home take your loved one’s life insurance? The short answer is it depends. I know, typical lawyer answer but it really depends on the type of policy. If the policy is a whole life policy that has a cash surrender value, that will be considered your asset and will be counted toward the amount of assets you have if applying for Medicaid. If the policy is a term life policy, the policy would be considered exempt as an asset as it cannot be “cashed out”.

Still Have Questions?

If you have additional questions or concerns about nursing home care and estate planning, please don’t hesitate to contact our law firm for guidance and support. Our experienced elder law attorneys are here to help you navigate this complex and emotional process and ensure that your loved one’s needs are met. Take action now to ensure your loved one’s future is secure. 

If you’re ready to get started, we invite you to schedule a consultation today

This article is a service of Miller & Miller Law Group. We do not just draft documents; we ensure you make informed and empowered decisions about life and death, for yourself and the people you love.


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