Yes it can be an asset, especially for Medicaid purposes. For example the state of Ohio counts any life insurance policy with cash values greater than $1500 as an asset. Some state vary on how this is treated. Life insurance can avoid probate unless the estate is listed as beneficiary and is protected from creditors however.
Agent Owner, Gilmore Insurance Services, Marysville, Washington State
Does life insurance count as an asset? Yes and no, depending on the situation for different purposes. On many financial applications the applicant is asked if they own life insurance and if they have cash values. One place that Life Insurance and their cash values aren't counted that is good to be that way is for FASFA information for college. As FASFA figures out what a family can "afford" to contribute for college, they mercifully don't count cash values.
The face amount of a life insurance policy does not count as an asset; the cash value of the life insurance policy may count as an asset.
Therefore, Term life insurance is not counted as an asset because there is no cash value. If there is cash value built up in Whole or Universal Life, that cash value may be counted as an asset, depending on the situation.
If you are the beneficiary of a life insurance payout, the amount you receive usually is not counted as an asset. There are conditions where it might be, but not generally.
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Therefore, Term life insurance is not counted as an asset because there is no cash value. If there is cash value built up in Whole or Universal Life, that cash value may be counted as an asset, depending on the situation.
If you are the beneficiary of a life insurance payout, the amount you receive usually is not counted as an asset. There are conditions where it might be, but not generally.