Reading 14. Eoc 22.
Why is insurance not counted as financial capital?
The face value (death benefit) of life insurance has no value unless I’m dead. Therefore it is not part of my financial capital. The cash surrender value of a life insurance contract does however have value to me, and would be included in my financial capital.
I find it funny when clients come in and shows me thier networth, and majority of it is their life insurance death benefit!!!
Haha thanks.
Funny as it may be clients do consider after life effect. The motivation to bequeath is super strong in some individuals…especially if you are from an Asian ethnicity.