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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Jeffrey Johnson

Insurance Lawyer

Jeffrey Johnson is a legal writer with a focus on personal injury. He has worked on personal injury and sovereign immunity litigation in addition to experience in family, estate, and criminal law. He earned a J.D. from the University of Baltimore and has worked in legal offices and non-profits in Maryland, Texas, and North Carolina. He has also earned an MFA in screenwriting from Chapman Univer...

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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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