A person's net worth is known as what?

A person's net worth is known as what?

• A. Cash value
• B. Estate
• C. Illustrations
• D. Life insurance

Answer: (B)

Net worth reflects the total value of everything a person owns minus what they owe at a given time, which is what the term estate captures. The estate includes real estate, bank accounts, investments, personal belongings, and other assets, offset by any debts. Cash value is just the amount available inside a life policy and is only one part of a person’s assets. Illustrations are projections of policy performance, not a measure of overall wealth. Life insurance describes the policy itself, not the total net worth. So net worth is best described as the estate.

Net worth reflects the total value of everything a person owns minus what they owe at a given time, which is what the term estate captures. The estate includes real estate, bank accounts, investments, personal belongings, and other assets, offset by any debts. Cash value is just the amount available inside a life policy and is only one part of a person’s assets. Illustrations are projections of policy performance, not a measure of overall wealth. Life insurance describes the policy itself, not the total net worth. So net worth is best described as the estate.