Is Life Insurance Cash Value A Liquid Asset? 
Since the owner of the policy has access to the accumulated cash value either through surrender or a loan , it is considered a liquid asset in most cases . This is especially true when you are applying for Medicaid . In Ohio , for example , cash value in a Life Insurance policy owned by the Medicaid applicant can not exceed $ 1500 . These rules vary by State so you need to check the rules in your State . 