Fred, You will need a statement from the insurance company which details what component of the premium credited to your bank account when you pay it) is a contribution/increase to the capital value of the asset which is the insurance policy (debited to the account representing the policy and which is a fee to cover their cost of operations/profits (debited to an expense account).
They will have invested the funds you put into the policy and will pay bonuses which add to the value of the policy (you debit the policy value by the amount of the bonus and credit an income account by the same amount) Depending on the tax rules for your jurisdication, that may or may not be taxable income. Commonly this is taxed in the hands of the insurance company and not the individual, but this may vary between jurisdictions. Most companies will send you periodic statements detailing the increase in value of your policy, the premiums paid, and bonuses paid from which you can calculate the required quantities. The easiest way to handle this is to use an asset account for the policy with individual subaccounts for the premiums paid, administrative charges and the bonus payments. When you pay the premiums you credit your bank account and debit the premium subaccount, when you receive a statement work out the difference between the increase in poliycvalue (bfeore bonuses) and the premiums paid and credit the sub account for administrative costs and debit an appropriate expense account for that amount. Similarly with te bonus amounts debit the account for bonuses and credit theincome account ( taxable or not as appropriate). david Cousens On Sat, 2022-04-23 at 10:40 -0700, Fred Tydeman wrote: > Suggestions on how to record for whole life insurance: > Premiums paid > Increase in cash value > Future death benefit > > I think some of that is like the Degas painting example in the Tutorial in > that the increase in cash value is an Unrealized Gain. > _______________________________________________ > gnucash-user mailing list > [email protected] > To update your subscription preferences or to unsubscribe: > https://lists.gnucash.org/mailman/listinfo/gnucash-user > If you are using Nabble or Gmane, please see > https://wiki.gnucash.org/wiki/Mailing_Lists for more information. > ----- > Please remember to CC this list on all your replies. > You can do this by using Reply-To-List or Reply-All. _______________________________________________ gnucash-user mailing list [email protected] To update your subscription preferences or to unsubscribe: https://lists.gnucash.org/mailman/listinfo/gnucash-user If you are using Nabble or Gmane, please see https://wiki.gnucash.org/wiki/Mailing_Lists for more information. ----- Please remember to CC this list on all your replies. You can do this by using Reply-To-List or Reply-All.
