She has been paying on this policy for 30+ years. She is in a nursing home & recently passed the 90 day waiting period, so has qualified to received a monthly amount of $1800
Until last month, her only income has been Retirement & SS which was over the Medicaid Income limit, but not near enough to pay for the required nursing home care. Prior to the move to the nursing home, we applied for Medicaid and were approved after setting up a 'Miller Trust'/Diversionary Trust. Her SS is directly deposited into the trust, making her eligible for Medicaid based on income. Upon her death, the monies in that Trust will go directly to the state.
Currently, being Medicaid eligible, our payment to the nursing home is $2070/mo.
Her Medicaid eligibility is to be reviewed in January, and I don't want her to be denied because of this additional Long Term Care reimbursement - again, it puts her over the monthly Medicaid Income limit, but is in no way enough to pay for monthly nursing home costs!
You might also try posting this question at www.bogleheads.org, a forum of folks very knowledgeable about financial matters.