Life insurance can be considered an asset in Canada, depending on the type of policy. Term life insurance, which only provides coverage for a set period and does not build cash value, is not typically treated as an asset. On the other hand, permanent life insurance policies, like whole life or universal life insurance, often accumulate cash value over time, which the policyholder can access, borrow against, or withdraw. This cash value component makes such life insurance policies a financial asset, similar to savings or investments. When applying for loans, qualifying for benefits, or during estate planning, the cash value of a permanent life insurance policy may be considered part of a person’s net worth. Additionally, in certain legal situations like divorce proceedings or bankruptcy, life insurance with a cash value may be disclosed as an asset. It’s important to review the specifics with a financial advisor or lawyer.