Kinda of a basic question. I was going to track the term life insurance my bride and I have as an asset. But it really isn't an asset is it? I can't sell it or anything.
Does anyone track this in Quicken just for records sake or no?
Any thoughts any has would be helpful.
Cheers.
Hi, John.
"Track" your term life insurance in the same way you "track" your auto and homeowners or renters insurance. Or the way you "track" your rent expense.
It's the same basic idea: We pay a premium for coverage for a limited period. At the end of that period, the coverage simply expires with no lingering effects. And no asset, either during the coverage period or after.
I would not try to track any of these items, except possibly to allocate the premiums over months, if I wanted to be precise about monthly budgeting.
Congratulations to you and your bride! ; Kinda of a basic question. I was going to track the term life insurance my
John:
I have many insurance policies that I maintain as "Asset" accounts.
I do it mainly as a method of having all policy numbers and contact information in Quicken to make it easy for an executor.
You are correct that term life policies do not accrue a cash surrender value, but the face value WILL be an asset in your estate.
The way *I* do these accounts is to first make sure that "Do Not Include in Totals" is checked for the account.
I enter all premiums paid.
I then make an adjusting entry entitled "Premiums Paid" to zero out the running total.
Of course, I have to delete the old adjusting entry, and make a new one dated the same, or after, any new premiums paid.
Not a burden for me since most payments are annual.
I then make a final entry "Face Value" with the face value.
This convluted method reminds me what the payoff is, and how much I have already put into a losing bet ;-)
Bob
Does anyone track this in Quicken just for records sake or no?
Any thoughts any has would be helpful.
Cheers.
Bob,
This was exactly what I was thinking of. Basically a record of what they are and having all of the financial items in one place for an executor or just for financial review with our planner.
Good tip on the keeping the asset from being added to the net worth even though it is part of the estate.
Currently I have the premiums just as an expense category but I like the idea of linking to the asset.
Thanks for the information and time.
john
Bob Wang wrote:
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