Is life insurance an asset? Do you consider your life insurance policy to be an asset like your house, cash in your bank account, or the gold bullion bars under your bed? Is life insurance the new asset class?
Are our net worth’s about to skyrocket? It is an interesting idea that has been gaining in popularity in the personal finance circles.
There are several reasons that you may want to consider your life insurance policy to be an asset. But, there are also plenty of reasons not to think of it in that way.
Is Life Insurance An Asset? Maybe!
I will start by saying that I am not a fan of this new philosophy. I personally do feel that life insurance policies are an asset. They are simply a tool. They aren’t a tangible asset that you can touch.
With that being said, there are a few circumstances where I can see that people would include their life insurance policies as an asset. Most of them revolve around whole life insurance policies which are very expensive for people to own. There are much better uses of your principle payments than whole life insurance which is also known as cash value insurance policies.