1. 10968 POINTS
    Tim Wilhoit
    Owner, Your Friend 4 Life, Brentwood TN
    No, a term life insurance policy is not an asset. The only type of policies that are considered assets are whole life and universal life because these polices accumulate cash value. The only point where a term life insurance policy would be an asset is after a death claim and the proceeds would become an asset to the beneficiary.
    Answered on October 31, 2014
  2. 37376 POINTS
    David G. Pipes, CLU®, RICP®
    Business Development Officer, T.D. McNeil Insurance Services, Fresno, California
    While most term insurance doesn’t develop cash values, there are a few that do. I suppose in those cases the cash value could be listed as an asset. It would probably be a minor amount. Normally term insurance provides a death benefit if death occurs during the term of the policy and nothing else.
    Answered on October 31, 2014
  3. 21750 POINTS
    Jim Winkler
    CEO/Owner, Winkler Financial Group, Houston, Texas
    That is a great question! Your term policy can be considered an asset in the regard that you have some peace of mind having some limited insurance coverage, as opposed to having none. In any financial regard, no, you can't say that it is. First of all there is no value to it, unless you pass away during the term, and you have no tangible asset once the term expires.Unless you were looking for a cheap insurance policy to cover a short term debt, or as additional coverage, I'm not a fan of term policies at all. Sorry, but I appreciate you asking!
    Answered on November 3, 2014
  4. 63333 POINTS
    Peggy Mace
    Most of the U.S.
    If you are applying for assistance, you do not have to list Term Life insurance as an asset. It does not have cash value, and the proceeds from the policy would go to your beneficiary if you are the Insured. Even if you are the beneficiary on someone else's Term policy, you need not list that as an asset.
    Answered on November 3, 2014
  5. 5877 POINTS
    Stan Cox II
    Insurance Adviser - Broker, SC Insurance Services, Oahu, Hawaii
    I like Jim Winkler's answer above, "in the regard that you have some peace of mind having some limited insurance coverage" a term life policy could be considered an "asset", but really not in any financial way. As Peggy said even if you are the beneficiary of someone's term life policy you can't count it as an asset in terms of figuring your net worth in a financial statement or to borrow against. You can buy a credit term policy to cover a debt in the case of your death, but it still isn't counted as an asset.

    Again, I'm with Jim - I don't value or recommend Term life policies generally. They have their place in some situations, but more of a last resort in my opinion.
    Answered on June 23, 2015
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