When is life insurance included on a balance sheet?
This article explains when life insurance is included on a balance sheet.
Last published on: September 03, 2025
Only the cash value of life insurance is included on a balance sheet. Because the death benefit of life insurance is not available to pay off liabilities while someone is alive, it is not included on a balance sheet as an asset.
This means you will not see term insurance (which has a death benefit but no cash value) on a balance sheet at all. You will also see only the cash value of permanent life insurance on the balance sheet, not the death benefit.