question about life insurance

[NoRegret]

In the equalization payment calculation, why is my life insurance considered my asset? I won't be alive when the money is available. my stbx is the beneficiary, shouldn't it be my stbx' s asset then?

Also I read somewhere that if I cancel it, my stbx can take over and pay the premium, so that he will still benefit from my death. I have no problem with this, after all if I die I don't need the money.

Any thoughts? experience with this?

[FaithandMorals]

Life insurance has a cash value. If the policy is paid in full it can be redeemed like cash. Also, if it is a benefit from your employer many countries consider this a taxable benefit.

Basically, it may help to think of an insurance policy as an IOU. Therefore, it is an asset. It's an accounting thing.

You may want to consider making your child (if you have any) as the beneficiary.

[NoRegret]

Originally Posted by FaithandMorals

Life insurance has a cash value. If the policy is paid in full it can be redeemed like cash. Also, if it is a benefit from your employer many countries consider this a taxable benefit.

Basically, it may help to think of an insurance policy as an IOU. Therefore, it is an asset. It's an accounting thing.

You may want to consider making your child (if you have any) as the beneficiary.

We don't have kids. I don't have family here. so I think it's not necessary to keep it. but the premium is very low, if I cancel and then within 5 yrs let's say I have kids, I won't be able to get the same policy with low premium. I am 34 now. if I keep it, it looks like my asset is a lot bigger than his in the separation agreement, where as I can't even collect the money as I will be dead by then.

[standing on the sidelines]

i didnt use the value of the pay out of the policy if i died, there is a cash surrender value. If i cashed in the policy today I would get my cash surrender value which is something like 6 grand vs the 120,000 that it is worth if i were to die instead. I put the 6000 on my financial statement and my lawyer never said that i had to use the pay out amount, the 120,000.

[Mess]

Whole Life is like a savings account. The cash surrender is roughly what you have paid in premiums. You can cash that in at any time. It is an asset.

Let's say you have 10k in cash in the bank. You die. You didn't get to spend it. You are arguing that it shouldn't be an asset. It is.

Like standingonthesidelines says, you don't list the payout as your asset, just the cash surrender.

[NoRegret]

Originally Posted by standing on the sidelines

i didnt use the value of the pay out of the policy if i died, there is a cash surrender value. If i cashed in the policy today I would get my cash surrender value which is something like 6 grand vs the 120,000 that it is worth if i were to die instead. I put the 6000 on my financial statement and my lawyer never said that i had to use the pay out amount, the 120,000.

Thanks for this, that sounds fair to me. How to find out the cash surrender value? Do I have to get it appraised, or just ask the insurance company?

[NoRegret]

Originally Posted by Mess

Whole Life is like a savings account. The cash surrender is roughly what you have paid in premiums. You can cash that in at any time. It is an asset.

Let's say you have 10k in cash in the bank. You die. You didn't get to spend it. You are arguing that it shouldn't be an asset. It is.

Like standingonthesidelines says, you don't list the payout as your asset, just the cash surrender.

thanks for the info about cash surrender value. I will include that amount instead. I've only been paying for 2 yrs.

[standing on the sidelines]

Originally Posted by NoRegret

Thanks for this, that sounds fair to me. How to find out the cash surrender value? Do I have to get it appraised, or just ask the insurance company?

just ask you insurance agent to forward you the information.