Does Net Worth Include Life Insurance?

  1. 63333 POINTS
    Peggy Mace
    Most of the U.S.
    Net worth usually only counts the current cash value in life insurance, and not the face amount, when figuring net worth for obtaining school loans, filling out financial records, etc. That is the only cash value that is accessible in life insurance before death. There may be situations where the face amount is counted but it would be specified as that.
    Answered on September 14, 2013
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  2. 61667 POINTS
    Steve Savant
    Syndicated Financial Columnist, Host of the weekly talk show Steve Savant's Money, the Name of the Game, Scottsdale Arizona
    Net worth is a financial statement that includes the summary of assets minus liabilities. Cash value permanent life polices that have accumulated cash value are part of the asset side of the balance sheet. The death benefit part of life insurance is unrealized prior to death and is not counted as part of the net worth statement.
    Answered on September 14, 2013
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