In a funny way of looking at it, I'd have to say yes. If you take a whole life policy, say from age 25 to age 65, at age 45 the cash value is about 1/4 of the face amount. At age 65, the cash value is about half of the face amount. So, a $100,000 whole life at age 25 has about $25,000 and at 65 about $50,000. At expiration, "whole life" 96, the cash value is $100,000. If you calculate the amount of money you have paid into the policy at those 3 stop points, 25 45 n 65, you can see that it's really an asset for the issuer.
Also, a few years ago I read that the insurance companies can invest YOUR CASH VALUES into investments that the insurance company deems viable and profitable. That money is not returned to you. Again, my first statement above.
My opinion is that cash values are no more than an overcharge. Proof? compare $100,000 term and $100,000 whole life premiums and you'll see. Keep comparing $100,000 participating policy and you'll really see how the issuer profits.
I reiterate: in a funny way (by design, actually) the answer has to be yes. Read Norman Dacey, Jane Bryant Quinn, Venita Van Caspel, and all the great financial geniuses and read what they say about BUY TERM AND INVEST THE REST.
Asset.
no, intangible
Corporately owned, cash value life insurance is "real property", and as such is a corporate asset, just like any other corporate asset. Does this constitue "equity"? I think it does. Rjbeeg
Generally:The life estate is an asset of the life tenant.The property is an asset of the remainder.Generally:The life estate is an asset of the life tenant.The property is an asset of the remainder.Generally:The life estate is an asset of the life tenant.The property is an asset of the remainder.Generally:The life estate is an asset of the life tenant.The property is an asset of the remainder.
Insurance can actually cannot be considered as an asset or a liability.. Infact Insurance is there to protect your asset for future needs and save you from financial crisis.. It reduces all the losses ocuured on any particular event..
Asset.
no, intangible
Only whole life insurance,not term life.
issuer
Yes, if the insured is also the policy owner.
Corporately owned, cash value life insurance is "real property", and as such is a corporate asset, just like any other corporate asset. Does this constitue "equity"? I think it does. Rjbeeg
Current Asset
You mean either covenant or caveat. Either way, you should contact the issuer of the policy.
I believe you're asking if life insurance is considered an asset and I would say yes. Generally speaking there are cash value type life insurance policies and term life insurance policies that tend to not have a cash value. Cash value policies; whole life insurance, universal life insurance, etc. have a quantifiable value to them considered to be equivalent to the cash surrender value if not more. This would be considered an asset in most instances. Although most term life policies do not carry a cash surrender value, you could potentially think of it as an asset as someone may be willing to purchase that policy from you. If you were to consider selling your life insurance, someone like a viatical company or life settlement company will likely pay you for it. The difficulty lies within valuing certain types of policies due to stricter IRS definitions, an ever changing life insurance industry, and more regulations. The value of a particular life insurance policy really depends on who is asking and what type of policy you hold. The value may be calculated differently for example if a policy is being given to a charity or if it being accounted for for Medicaid purposes.. "Is asset life insurance?" I would say yes to that question more times than no.
Generally:The life estate is an asset of the life tenant.The property is an asset of the remainder.Generally:The life estate is an asset of the life tenant.The property is an asset of the remainder.Generally:The life estate is an asset of the life tenant.The property is an asset of the remainder.Generally:The life estate is an asset of the life tenant.The property is an asset of the remainder.
Prepaid insurance would be an asset. Insurance expense is when the insurance has been used up, thus making it an actual expense on the Income Statement. Whereas Prepaid Insurance on a Balance sheet is classified as an Asset.
Prepaid insurance is that amount which is paid in advance for future insurance so until actual insurance facility is availed by company it is an asset of company and if it is for short term or will be availed in current fiscal year then it is current asset otherwise a fixed asset, if some portion is usable in current fiscal year then only that portion will be current asset and remaining will be fixed asset.