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Nationwide State Farm Allstate

Is life insurance considered an asset?

Permanent life insurance policies with cash value accounts are typically treated as assets, whereas term life insurance, which doesn't have a cash value component and only pays the policy’s face value at death, generally is not. Although permanent life insurance is not an asset for probate purposes, it can be classified as an asset in a divorce, for a mortgage, and for Medicaid purposes.

UPDATED: Jul 14, 2023Fact Checked

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Nationwide State Farm Allstate

Is life insurance considered an asset?

[su_box title="Overview" style="default”] Permanent life insurance policies with cash value accounts are typically treated as assets. Term life insurance, which doesn't have a cash value component and only pays the policy’s face value at death, generally is not viewed as an asset. Life insurance is not considered an asset of a probate estate because the death benefit proceeds go dir...

Chris Abrams

Licensed Insurance Agent

Chris is the founder of Abrams Insurance Solutions and Marcan Insurance, which provide personal financial analysis and planning services for families and small businesses across the U.S. His companies represent nearly 100 of the top-rated insurance companies. Chris has been a licensed life and health insurance agent since 2009 and has active insurance licenses in all 50 U.S. states and D.C. Chr...

UPDATED: Jul 14, 2023

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UPDATED: Jul 14, 2023

Advertiser Disclosure

It’s all about you. We want to help you make the right legal decisions.

We strive to help you make confident insurance and legal decisions. Finding trusted and reliable insurance quotes and legal advice should be easy. This doesn’t influence our content. Our opinions are our own.

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Nationwide State Farm Allstate