Will Medicaid Take My Life Insurance? 
If the face amount of the life insurance exceeds $ 1,500 at the time of Medicaid is being applied for , they could count the cash value of the policy . The face value is the amount beneficiaries would be paid in the event of the applicant 's death . Death proceeds go to the beneficiaries of the life insurance policy based on the death insured not the policy owner . Consult an attorney before relying on any information dealing with Medicaid . 