Is A Life Insurance Policy Considered An Asset? 
This is a question best answered by a CPA if you 're asking in regards to tax purposes . Generally speaking , it 's not a liquid asset . Life insurance is a contract that says that if the insured dies during the life of the policy , the insurer will pay the beneficiary the stated death benefit of the policy . If you have cash value that has built inside the policy , you can borrow against it . Please note , borrowing from your cash value is a loan and is expected to be paid back . You can also elect to cash out the policy by terminating it and taking the cash value -LRB- less any surrender charges , loans , or interest left on the policy -RRB- . Before you terminate coverage to take the cash value , you may want to consult with your agent to make sure it 's the best move for you . There may be other things to consider that you 're not aware of/thinking about -LRB- e.g. protecting your insurability , what can happen if you needed/wanted coverage again , etc. -RRB- . I hope the information is helpful - please feel free to contact me for help and if you have any questions . Thanks very much . 