One way to think about life insurance and your need for life insurance in your personal financial portfolio is to think about things in terms of your human capital potential. <\/strong><\/h4>\n\n\n\nThis sounds a little nerdy, but here is an explanation: <\/p>\n\n\n\n
Over time people invest in themselves by going to school, learning different skills and investing in themselves to get better jobs and make more money over time. That is awesome.<\/p>\n\n\n\n
Then they borrow against those future earnings to get a mortgage, get a car loan, or secure other personal loans. <\/p>\n\n\n\n
One of the things life insurance does is take that human capital, your potential future earnings, and hedge those earnings for your loved ones. Term life insurance hedges the human capital risk in your family\u2019s overall financial portfolio.<\/p>\n\n\n\n