If you have Term life insurance, it will only pay out the death benefit if you pass, so it does not have a cash value while you are alive. If you own Return of Premium Term life insurance, you may be able to get back some of what you paid in, if you kept it long enough.
If you have Whole Life or Universal Life with a cash value, it is worth to you now the amount of the surrender value. If you surrendered it, you would get that cash value. You can determine the current value by requesting an in force illustration from your agent of the company through which the policy was purchased.
Business Development Officer, T.D. McNeil Insurance Services, Fresno, California
Life insurance policies can be assets if they have cash value. Otherwise their value is in the promise that the company has made to pay a death claim should you die during the period that the policy covers. Some policies cover the entire life while others only cover for a specified period of time. As an asset life insurance can be used as collateral or a loan can be taken from the insurance company.
That is a great question! There are two values to your policy. Your policy has a short term worth, and a future worth. The short term worth can be measured by the cash value ( if any ) that your policy has generated. This is the amount of money available for you to use should you need to use it, or that the company would return to you, (minus fees) should you surrender the policy. The future value is the amount of the death benefit, or face value, of the policy. This is the amount that would be paid to your beneficiary. There is also an emotional value, difficult to put a value on, and that is the peace of mind knowing you've protected your loved ones. Thanks for asking!
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If you have Term life insurance, it will only pay out the death benefit if you pass, so it does not have a cash value while you are alive. If you own Return of Premium Term life insurance, you may be able to get back some of what you paid in, if you kept it long enough.
If you have Whole Life or Universal Life with a cash value, it is worth to you now the amount of the surrender value. If you surrendered it, you would get that cash value. You can determine the current value by requesting an in force illustration from your agent of the company through which the policy was purchased.
Life insurance policies can be assets if they have cash value. Otherwise their value is in the promise that the company has made to pay a death claim should you die during the period that the policy covers. Some policies cover the entire life while others only cover for a specified period of time. As an asset life insurance can be used as collateral or a loan can be taken from the insurance company.