Is Term Life Insurance An Asset?
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63333 POINTSview profilePeggy MaceMost of the U.S.No, Term life insurance is not considered an asset because it does not have any cash value. The only time that Term life insurance results in cash paid out to anyone is if the insured person passes, and then the death benefit generally goes to the beneficiary tax free.Answered on May 3, 2013flag this answer
11783 POINTSContact Meview profileLarry GilmorePROAgent Owner, Gilmore Insurance Services, Marysville, Washington StateI have never seen anything that acknowledges term coverage as an asset. Term insurance is considered temporary coverage, does not have a cash value and I have never seen it listed as an asset on any financial forms. Usually on financial forms the entity asking asks about cash value insurance balances only.Answered on May 3, 2013+01+1 this answer
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0 POINTSContact Meview profileDavid RacichPROFountain Hills, ArizonaTerm life insurance is not an asset in and of itself. But term life insurance could be construed as personal property. Term life insurance policy may be convertible to a permanent cash value policy, which could be sold to a third party as a life insurance settlement asset. On that basis that personal property can be sold to a third party, it is generally defined as an asset. Keep in mind that there are state and/or insurance company regulations on these transactions which may prohibit the sale.Answered on May 4, 2013+01+1 this answer 0flag this answerview more answers by David Racich
1492 POINTSview profileJeff DavisInsurance Advisor, Lordship Insurance Services, CaliforniaIn the strictest sense of the word, term insurance would not qualify as an asset. It is similar to auto insurance in that it only pays in the event of a loss. Assets tend to have a cash value and can be sold. Term Insurance cant be "sold" in the traditional sense.Answered on May 4, 2013flag this answer- 0 POINTSContact Meview profileDavid RacichPROFountain Hills, ArizonaTerm life insurance is personal property. Term life insurance that has an active clause of convertibility that can be exercised may have asset value for the life settlement market. Policy owners may sell their policies for cash to a third party, depending on their state regulations and the issuing life insurance company.Answered on July 16, 2013+01+1 this answer 0flag this answerview more answers by David Racich
- 63333 POINTSview profilePeggy MaceMost of the U.S.Term life insurance is not considered an asset on income tax or when applying for Medicaid or financial aid. The only life insurance that is usually considered an asset is the cash value of permanent insurance, and then the face amount of the Whole or Universal Life is not the asset, but the cash value only.Answered on July 16, 2013flag this answer
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