Call your local area agency on aging, eldercare locator or an elder care attorney for assistance. Medicaid is jointly funded by federal and state governments and managed by the states. Rules differ from state to state. It covers nursing home costs for people whose income and assets fall below a certain level. If the person is expected to return home or if there is a noninstitutionalized spouse, Medicaid exempts the home and a vehicle below a certain value.
Many states place a lien against the home to repay the state after the patient dies.
The investment is guaranteed to earn a minimum rate of interest, say 4 percent. This builds up a cash reserve to cover nursing home or at-home care. Money not spent goes to heirs as a life insurance death benefit. Some policies cover both husband and wife. If one spouse uses only a portion of the benefit, the remainder is available for the other spouse.