Can Nursing Homes Take Whole Life Insurance? 
Nursing homes can not take your whole life insurance policy away from you , per se . But if you are in the spend down period of going on Medicaid to pay nursing home costs , they will put a limit on how much cash value your Whole Life insurance can have . That amount is around $ 1,500 . If your policy exceeds that amount , you have some choices : 1 -RRB- There is a law allowing people to keep some of their coverage , while using the rest for long term care expenses . 2 -RRB- You may be able to assign your policy to a funeral home . 3 -RRB- If you are looking down the road , you could change ownership of your policy to someone else . But this needs to be done 5 years in advance of going to the nursing home . 4 -RRB- In some situations , you can put your policy into an annuity . Please give me a call if you 'd like me to help you set up a final expense policy that will be protected if you enter an extended care facility , or to help you figure out what to do with coverage you already have . 