Need advice re Absolute Assignment Life Insurance Policy with cash value and preneed burial itemization. How much money needs promised?

My 64 yr brother has a life insurance policy with 7,000 cash value which keeps him from Waiver programs for assistance for elderly & autism. The amount upon death is 14,000. It does earn small dividends. The funeral home rep is telling us he needs to do a pre need itemized list of at least $14,000 to be & stay Medicaid Long Term Qualified. I’ve been told this isn’t true.