Asset Management Awareness Month and Life Insurance

Celebrate Asset Management Awareness Month by getting life insurance.Asset Management Awareness Month and Life Insurance

March is Asset Management Awareness Month.  While this month is primarily focused on businesses managing their assets, there’s no reason why you can’t take this month to think about your personal assets.  One way to celebrate this month is by thinking about your life insurance as a type of asset.  Curious to learn more about the financial value of life insurance?  Read on.

What is an asset?

In simplified terms, an asset is something that you buy now with the belief that it will have value in the future.  Things such as a house or shares in a stock are commonly thought of as assets.

Where does life insurance fit in?

While many people do not think of their life as a financial asset; it technically is.  Similar to other types of assets, life insurance offers the policyholder a payout if a certain event occurs.  However, the main difference between traditional assets and life insurance is that the size and timing of the cash flow is very different.

Your Life Insurance as an Asset

Generally, whether or not your life insurance is an asset depends on your circumstances and the policy that you have.  For instance, term life policies aren’t usually considered an asset by most financial institutions.  However, whole life insurance policies are treated like an asset because there is a guaranteed payout.  So long as the premium payments continue, the policyholder’s beneficiaries will receive compensation when the policyholder dies.  Because the payout is normally quite substantial (enough to cover debts, pay for funeral costs, and so on), most financial institutions will accept a whole life insurance policy as an asset.

Curious to learn about some of the other benefits of having life insurance?  Contact the experts at Desert Empire Insurance.  Our knowledgeable team is ready to assist you with all your insurance questions and get you the coverage you need today.