The answer to this question is not simple.
Medicaid is a state-administered program. This means that the eligibility requirements can vary depending on where you live, and it is possible that a life insurance policy might affect your ability to be eligible for Medicaid benefits.
Under federal guidelines for Medicaid and eligibility for it, life insurance is considered an “asset”. It is possible that you might have to relinquish your policy before you are granted Medicaid.