My aunt is currently on Medicaid, and her boyfriend has a $50k life insurance policy that she is the beneficiary on. We heard that if he passes, and she collects the insurance, that this will cancel her Medicaid. Is there any way to avoid this other than not making the claim (she is a very sick woman and now worries about this more than she should)? BTW she lives in Florida.
1) How much are the monthly premiums of your husband's life insurance policy?. Can you still handle it? My suggestion is to keep that policy. Keep up the monthly payments. You'll need the proceeds someday. I assume that you are the only beneficiary. In the unlikely event that you pre-decease him, the $40,000 can be used for his care. Talk to the life insurance company to be sure that the proceeds on your policy ( the $40,000.) are protected.
Good Luck!
p.s. His behavior is normal for someone of his age and his medical condition. You are a lucky woman.