Life Guys: Heres an interesting scenario...I'm working with a middle aged disabled man on getting him a 40K graded death benefit life policy with Fidelity (that is all I can find he qualifies for at this time based on his health history)...Please no advice on this. BUT here is where I need help. Before we submitted the paperwork this guys funeral director tells him that the 40K paid into the funeral trust at the funeral home will be seized by the state because the funeral only costs $8,000 and he should apply for a lesser face amount with me to pay into the funeral home trust? I'm like what? So I told him to consult an estate planning attorney because to my knowledge that would serve him best and maybe he can set up a personal trust so the state doesnt seize his assets as a medicaid recipient... However, the funeral home director sells their own life insurance policies of about 10k in house, so I'm wondering if the funeral home director is trying to make money on the guy I am trying to help. Any ideas what may be happening here from the funeral home directors perspective (is he trying to sell this guy a policy, not me)...And what might an estate planning attorney say. I know there are MANY medicaid recipients who have much more life insurance than this and their beneficiaries are family members, not the state...or the beneficiary is their personal trust, but I could be wrong. Ridiculous situation. And the guy is worried about the policy building cash value over time that the state could seize. I told him it would take 30 years of paying into the policy with Fidelity before it even accrues even a few bucks in cash value, its a non factor. He wants the whole life because he likes the level death benefit and premiums that are guaranteed...I know he doesnt get the full benefit with this policy until after three years BUT that isn't my question. Is the funeral home director just trying to put a wrench in my sale? And what might an estate planning attorney advise him. Again, he is permanently disabled and will be going on Medicare benefits this summer. - - - - - - - - - - - - - - - - - - Anyone wanna reply to my stupid post?