Funeral Consumers Alliance

My mother is in a nursing home for short term rehab. It is looking as though she will not recover short term and may have to go to long term care. We are in the process of preplanning her funeral and want to be certain it is paid for because if she goes long term, she will have to use up all her funds and the value in her home to the nursing home prior to going on MEdicaid. We have been told that should she be on Medicaid at the time of her death, the life insurance policies will have to be signed over to Medicaid. We feel they should be able to be used for her burial. How do we preplan and still be able to use her life insurance toward the cost?