Your Life Insurance as a Personal Asset

Your Life Insurance as a Personal Asset

Learn how your life insurance can be a financial asset.

It’s Asset Management Awareness Month.  While this month usually focuses on businesses managing their commercial assets, there’s no reason why you can’t take this month to look at your personal assets.  For instance, you can celebrate this month by taking look at your life insurance.  Here’s what you need to know about your policy as a personal financial asset.

  • What is an Asset?

In simple terms, an asset is something that you buy now with the expectation that it will have value in the future.  Things such as shares in a stock or a home are common types of personal assets.

  • How Does My Life Insurance Fit In?

While most people do not think of their life insurance as an asset, certain types of policies are.  This is because, just like other assets, life insurance offers a payout when a certain event occurs.  The only difference between life insurance and more traditional assets is that the size and timing of the payout.

  • Your Life Insurance as an Asset

Not all life insurance policies are considered assets.  For instance, term life policies are not considered assets because they are temporary and therefore do not have a guaranteed payout.  However, most financial institutions consider whole life policies assets.  This is because, so long as you continue to pay your premiums, your beneficiaries are guaranteed compensation when you die.

If you are curious about how to manage your life insurance as an asset or are simply interested in getting the right coverage to fit your needs, contact the team at Lloyd S. Berkett Insurance Agency.  Located in Los Angeles, we are ready to assist you with all your insurance needs.

Lloyd Berkett Insurance

11150 W. Olympic Blvd.
Suite 610
Los Angeles, CA 90064

(310) 857-5757
(800) BERKETT | 237-5388
Fax: (310) 857-5750

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The Lloyd S. Berkett Insurance Agency, Inc. was founded in 1946 by Lloyd S. Berkett. Regarded as one of Southern California’s most successful, well-respected and innovative independent insurance agencies, ... Read More

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