How to Record a Life Insurance policy in Quicken Premier

jjrichards

I am running Win 10 and Quicken Premier . I want to record a Life Insurance policy . I assume it would go as an asset ?

Has anyone else recorded a Life policy in Quicken

Jeff

NotACPA

IF it's a "whole life policy", I'd show the current cash value, updated annually.

You'd only own the "face value" when you die. To record the face value as an asset earlier would distort your net worth.

If it's NOT a "whole life policy", I wouldn't record it at all. You don't own the face value NOW. All that you've got now is the expense.

jjrichards

Thank you for your response . I failed to mention I am retired and company provides life policy and pays the annual premium . Would you show it as an asset ?

Thank you

NotACPA

I'd think that you need to determine if you actually own anything AT THIS TIME. Or, do you just own the promise of the future death benefit?

IF you decide to record this policy in Q, you might think about making is a Separate Asset, so that such future value isn't included in your current net worth, thus distorting it.

jjrichards

Thank you for the response . To answer your question I just "own the promise to pay" . I did record as a separate asset, used other and listed the amount. Any asset you input in Quicken where property , vehicles , jewelry , etc does increase your net worth .

NotACPA

https://community.quicken.com/discussion/comment/20468250#Comment_20468250

Not entirely true. If you do TOOLS, Account List and click EDIT adjacent to the insurance account and then Click "Display Options" you can check "Keep this account separate … " which will cause it to NOT be included in your Net Worth.

jjrichards

Thank you . I learned something today after using Quicken for over 20 years !