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Learning, Sharing, and Teaching => Ask a Mustachian => Topic started by: G-dog on January 29, 2015, 06:31:42 AM

Title: Life insurance & net worth calculations
Post by: G-dog on January 29, 2015, 06:31:42 AM

I was updating spreadsheets, including my annual update on life insurance value. I realized this is not in my net worth calculation because I wasn't sure how/ if to include it. I've got net cash value and death benefit value. Seems if I include anything, it would be the cash value amount.

If you have life insurance - do you include it in your NW?

Title: Re: Life insurance & net worth calculations
Post by: Capsu78 on January 29, 2015, 07:52:50 AM

Yes, just todays cash value...

Title: Re: Life insurance & net worth calculations
Post by: JoJo on January 29, 2015, 12:55:11 PM

Agreed - include it at it's surrender value   (but note that surrender value will be taxable if the value exceeds the premiums paid in).

Title: Re: Life insurance & net worth calculations
Post by: G-dog on January 29, 2015, 05:49:57 PM

Thanks folks, that makes sense to me. Sometimes you just get tangled in other options.  I also just tend toward worst case scenario what ifs - so not including it was a conservative estimate. I also don't include the house (semi-liquid asset depending on the market at any given time).
I could just do multiple estimates too....