Can Nursing Homes Take Your Life Insurance? 
If you have term life insurance it has no cash value . That would make the answer very simple . No one can take that from you . So your life insurance would remain secure while in a nursing home , if it is term insurance , so long as you can find a way to continue to pay the premiums . The more interesting question is what if you have permanent or cash value life insurance ? These policies build up value , and can actually be sold , or surrendered for cash . A nursing home might want that money . Depending on the nursing home and their contract with you , they might require you to pay them from such proceeds , but there is no legal requirement that you do so for them , and you can , of course , go to a different nursing home . The harder question is what if you have no or little other assets , and are planning to enter a government assisted facility ? Medicare will NOT pay for long term care , but MediCal will , but you will need to spend down your assets . So the question arises , if you are required to spend down your assets , will you have to sell the life insurance policy -LRB- meaning surrender its cash value -RRB- in order to stay in a MediCal nursing home . The answer to that very narrow specific question can change from time to time , as the MediCal rules change . But know that if you wish to claim impoverishment , and you retain ownership of a substantial cash value asset , you should expect the government to demand that you sell it and use the proceeds to pay for your care . Tread carefully . Thank you . GARY LANE . 