The beneficiary owning the policy is a countable asset if they ever die, are sued, divorce, apply for Medicaid etc. Can be problems but usually works. But only if they are the owner from the very beginning. You can’t assign ownership later or it’s subject to the 5-year look back.
If the policy is intended for funeral/ final expenses you can just assign it to any funeral home for a day one exemption. If it’s to leave money to heirs you have to plan 5-years in advance.
Here’s a question . Let’s say a person had $100k 3 yrs ago. She gifted it out to her grandkids as she didn’t need it anymore as she made $3k a month in pension and social security . If she went in nursing home at $10k a month they’ll take here social security and pension if she can’t pay the nursing home and put her on Medicaid right? If she has equity in here house they’ll seize the house and sell it and take the equity when she dies right ?Will they go after the Grandkids for the $100k she gifted out 3 yrs earlier ?