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Can medicare take a life insurance policy?

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If what you are asking is whether Medicare can seize an insurance policy, the general answer is "No".

Medicare is a government benefit program that pays a monthly amount to citizens reaching a given age, or upon the occurrence of certain contingencies specified by Federal law. To qualify, they must have worked for a given period of time and paid into the system enough to earn a requisite number of "credits". In the absence of fraud, Medicare is currently an entitlement, and is paid irrespective of other assets that the recipients may have, including insurance policies.

If some sort of Medicare fraud was committed, the Federal government may decide file a civil suit or lodge criminal charges against the perpetrator. The outcome may be that he/she has to reimburse Medicare for the ill-gotten gain. If not paid voluntarily, the government may seize assets, which could include life insurance policies. The savings element of whole life insurance (called "cash value") is what would be applied to the debt.

Medicaid, another government program, works differently, and could involve the seizure of a life insurance policy. Medicaid is a joint Federal-State program. It is a type of welfare program intended for the indigent. When Medicaid pays a recipient, it acquires a lien on the assets of that person to the extent of its payment. When the recipient dies, Medicaid attempts to collect that lien from the assets. The life insurance could be part of those assets.
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