Does a life insurance policy count as an asset for the beneficiary?
The policy is only an asset to the owner of the policy, not the beneficiary. If you own a 100,000 policy and the cash value is $300 the $300 is the only asset. The $100,000 isn’t an asset until it’s paid out, and then it’s an asset for the beneficiary. I’m thinking you are both the owner and the beneficiary of this policy, though. But if your child owned the policy and you were just the beneficiary the child would have the asset until the policy paid out. I know it’s a bit complicated… Most residential mortgage companies will not accept life insurance cash value as an asset for mortgage purposes, especially with the market as it is today. Most policies just don’t have enough cash value to make a difference in your total assets. Besides, it’s hard to control what happens to the policy – the owner could cash it in or stop paying the premiums. I hope you find a source that will work for you! .
