Is Cash Value Of Life Insurance A Liquid Asset? 
Cash Value life insurance , especially designed for death benefit coverage is illiquid in the early years due to surrender charges and policy expenses . However , if a life insurance policy was maximum funded to the TAMRA limits with the proper death benefit option , it is feasible that cash accumulation could be enough within 3-5 years to have some liquidity . Bottom line : cash value life insurance should not be classified as a liquid asset . 