01/05/2026
Policyholders often wonder if their life insurance can be considered a financial asset. Well, the answer typically depends on the type of insurance you have. When it comes to life insurance, there are two main types, term life insurance and permanent life insurance. Term life insurance covers you for a specific period of time, usually between 5 and 30 years. And once that term expires, so does the coverage. It also does not build cash value, and therefore, it cannot be used as an asset. Permanent life insurance, on the other hand, provides lifelong protection. Now this type of policy also has the ability to build cash value over time. This cash value can be accessed through policy loans or withdrawals and can be used for a variety of purposes. While both types of insurance have their own advantages, permanent life insurance is the one that has the potential to be used as an asset. Now, if you're not sure what type of policy is right for you, speak with a life insurance agent to learn more about your options.
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