There is a balance sheet which lists life insurance as other current assets.

Yes - if it has cash surrender value (such as universal life or whole life)

The death benefit proceeds from term insurance could be considered a future economic benefit although receipt is contingent on the contract remaining in force and the death of the life insured (would be a type of contingent asset, but not recordable on the balance sheet per GAAP). The cash surrender value of a life insurance policy provides a future economic benefit as it is the amount that can be realized by the company if the policy is surrendered.

Therefore, it is the cash surrender value of the life insurance contract that is recorded as an asset on the corporate balance sheet. Each year the change in the cash surrender value changes the asset on the balance sheet. The difference between the premiums paid in the year and the increase in the cash surrender value is recorded as the net insurance expense on the income statement. In the later years of the policy, the increase in cash surrender value may exceed the premiums paid in the year.