Cash Value life insurance is a financial asset and as such is included in your Net Worth Statement. While you are living if the policy has a net cash surrender value it would count as an asset. The insurance amount is not payable until you die so it is not included in your Net Worth. It is included as part of your legacy or estate.
If you have further questions, or feel that I could be of assistance, please do not hesitate to contact me.
If you would like to work with a local life insurance broker, you could start with a Google search. For example, if you search for: life insurance broker Halifax or life insurance agent Halifax, my name, along with several others, will come up. You can use the same method to find a life insurance broker in your community. .
While you are alive, just the cash value of your life insurance policy is included in your net worth. If you only own term life insurance, you would not count that policy at all in your net worth. After you pass away, the death benefit paid out from all types of policies are included in the value of your estate.
Co-Founder, TermInsuranceBrokers.com, Goldenzweig Financial Group, Las Vegas, Nevada
Only the cash value inside your life insurance policy is included in your net worth while you're living. The face amount of the policy is not included in the calculation.
If/when a claim on the policy is made by the beneficiary, the amount paid out (the face amount less any outstanding loans/interest on the policy) may be included in the calculation of your estate for estate tax purposes. Many people create ILITS (and/or other types of trusts) to put the policy into to control how the proceeds are distributed and to minimize the cost of transferring their assets to their loved ones.
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If you have further questions, or feel that I could be of assistance, please do not hesitate to contact me.
If you would like to work with a local life insurance broker, you could start with a Google search. For example, if you search for: life insurance broker Halifax or life insurance agent Halifax, my name, along with several others, will come up. You can use the same method to find a life insurance broker in your community. .
If/when a claim on the policy is made by the beneficiary, the amount paid out (the face amount less any outstanding loans/interest on the policy) may be included in the calculation of your estate for estate tax purposes. Many people create ILITS (and/or other types of trusts) to put the policy into to control how the proceeds are distributed and to minimize the cost of transferring their assets to their loved ones.