www.coxlawgroup.com - Does Bankruptcy Affect My Life Insurance Policy?It is not an asset of the bankruptcy estate. Any monthly premium must be listed in your bankruptcy schedules and the bankruptcy trustee may object to excessive payments for term life insurance. A whole life insurance policy has a cash surrender value and is therefore a personal asset. To learn more call (434) 845-2600 for your free appointment. Serving Lynchburg, Bedford, Danville, Charlottesville, Farmville, Harrisonburg, Staunton VA.