Is Cash Value Of Life Insurance A Liquid Asset?

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   David RacichPRO

   Fountain Hills, Arizona

   Cash Value life insurance, especially designed for death benefit coverage is illiquid in the early years due to surrender charges and policy expenses. However, if a life insurance policy was maximum funded to the TAMRA limits with the proper death benefit option, it is feasible that cash accumulation could be enough within 3-5 years to have some liquidity. Bottom line: cash value life insurance should not be classified as a liquid asset. 
   
   

   Answered on June 13, 2013

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