Are unpaid insurance premiums a liability? If so, can you consider it’s coverage as an asset too?

Tags: insurance, premium

4 Responses to “Are unpaid insurance premiums a liability? If so, can you consider it’s coverage as an asset too?”

1. PJDC says:

   January 22, 2013 at 12:22 am

   Unpaid insurance premium becomes a liability when the policy of the insured lapsed, because the insurance covetage will be temporarily not in force.
   Definitely, if you have an insurance, the worth of the insurance you bought is the worth of asset you gained( in a much lower price!)! With insurance, you can’t go wrong as long as you can sustain the yearly premiums within the x number of years. God bless!

2. Bags says:

   February 3, 2013 at 7:04 pm

   Hi. I am not that well informed about assets and liabilites. In reference to the above question and PDJC said that unpaid premiums become aliability once the policy has lapsed. Now, what if its not lapsed, it wont be comsidered a liability?

   I am asking this because i am currently preparing my SAL and i have a 10year life insurance being paid quarterly. I am now in my 5th yrae of paying the premium. In my SAL, I included the remaining 5 years worth of my quarterly premiums. Well, obviously I included the insurance value in my assests. Am i doing the correct thing?

   Please advise. Thank you.

3. Bags says:

   February 3, 2013 at 7:08 pm

   Refering to my question in mY earlier quesrion, what i mean was i included the remaining unpaid 5 years worth of premium in my liabilities.

   Thanks.

4. PJDC says:

   June 30, 2013 at 3:44 pm

   Sorry for late reply, yes you are correct!;)