Understanding the Asset Value of Your Life Insurance Policy
There may be several instances in life when you need to list or evaluate your assets, like applying for a loan or government aid. But before you can do that, it’s crucial to understand which of your possessions qualify as assets and whether your life insurance policy falls into this category. In Michigan, life insurance policyholders can avail assistance in understanding different types of insurance from the experts at Gilead Insurance Agency.
Term Life Insurance
Generally, term life insurance is not categorized as an asset. Although it provides peace of mind for future security, it doesn’t carry any cash value during your lifetime. Furthermore, these policies expire after a predetermined term, releasing the benefits only if you pass away while the policy is active.
Permanent Life Insurance
On the contrary, permanent life insurance is considered an asset. This type of insurance, available in variants like universal, whole, and variable policies, stays active as long as the owner is alive and accumulates value over time, potentially earning interest or investment income.
The value of permanent life insurance can be used during your lifetime, which is why iit’sconsidered an asset. It allows you to withdraw or borrow against the policy’s accumulated value. Furthermore, this asset can assist in securing a mortgage or loan, as it assures the lender you have accessible funds, if necessary.
Choose the Right Policy with Gilead Insurance Agency
The Gilead Insurance Agency offers numerous life insurance options to Michigan residents, including whole, term, and universal coverage from various providers. Our well-versed, friendly agents will guide you in selecting the perfect policy. Begin your journey to securing a financially stable future today. Reach us at 313-533-3220 or visit our office at 18323 West McNichols Road in Detroit, MI.
