Net Worth

Malthusian

tafelmoneysaver said:

This article appeared high in the results for the internet search query "include life insurance in net worth"

https://www.sapling.com/12065138/life-insurance-count-net-worth-values

And like many such results, it's talking about the USA.
Almost no-one in the UK now takes out life insurance with "a reserve of cash that the insured can access before she dies".

Ray_Singh-Blue said:

It's a no from me.

Say you have insurance that pays out £10,000 if you lose an eye at work. Are you going to list that as £20K on your net assets sheet?

Most such policies would only pay out on the loss of the first eye and then expire, so only if your eyes weren't up to much to start with :-) (Unless there was a "reinstatement option" under the plan.)

cloud_dog

hi

im trying to set up a excel net worth spreadsheet so I can track my accounts, I have noticed some people put their life insurance on their assets is this advisable to do? 

I've never seen the point in tracking my 'net worth'.

I think there is a great deal of benefit in tracking your position in relation to your specific plans, e.g. paying off a mortgage early / by XXXX, or monitoring your retirement pot performance against a potential plan.  These are what I 'track' and project, but net worth, no.

In relation to life insurance, I have it listed as a policy, and I have it documented in my in case of emergency "What you need to know" document, and this document summarises their position post my departure (I tend to update it once a year). 

Krakkkers

Canoe guy included his life insurance as an asset.

subjecttocontract

What if you don't have a canoe though ?

Shedman

subjecttocontract said:

What if you don't have a canoe though ?

Then presumably you're Up Sh*tCreek without a Paddle 😜

bompey

Surely it depends what you want to do with your net worth. If you are trying to work out how much your partner will be provided for, or how much cash executors will need to pay IHT, then it has a purpose. If it is to determine whether you have enough to retire on then it doesn’t.