Is Life Insurance Considered An Asset For Medicaid? 
Whole Life or Universal Life Insurance that has a cash value can be considered an asset for Medicaid purposes . You are allowed a final expense policy when going through a Medicaid spend down , so the policy might be able to be designated for that . You have a legal right to convert your Life Insurance into a Long Term Care Benefit Plan , allowing you to keep a reduced face amount and using the cash value to pay for Long Term Care needs . To find out the best way to handle your life insurance policy , be sure to know the Medicaid guidelines for your state and contact a knowledgeable agent to assist you . 