The Value of Human Capital

It’s a nice day out! You decide to go for a little 20-mile bike ride. Twenty minutes into the ride, a millennial on their cell phone gets a text from their best friend…… She’s gotta take it, it might be important. Her head looks down to reply “lol” to her best friend, and BAM!! Everything goes black for you. Nobody really knows what happens after the Grim Reaper comes, but we can at least insure life back on earth for our family can still go on without you.

You’ve worked hard for dozens of years to build up a nice little nest egg for your family. You may have some stocks, bonds, real estate investments, a safe full of gold, whatever…. They’re all great, and it’s nice to be diversified. The older you get, the more time you have to acquire these things. All of this money of yours is considered financial capital. Financial capital is always the first thing people think of when considering their worth. It’s all anyone ever talks about. But could you be missing out on a more important investment? You!
Human capital is the worth of all of your future earnings. It’s the present value of what you will earn and save throughout your life, including whatever social security and pensions you will earn later in life as you get older. Which number is bigger? Go ahead and compare the two. I bet most of you have a higher human capital. Well, this is where life insurance comes in.

“Human capital is the worth of all of your future earnings. It’s the present value of what you will earn and save throughout your life, including whatever social security and pensions you will earn later in life as you get older.”

Life Insurance is the only way to insure your human capital. It’s also the best way to pass wealth to your family. It’s much less expensive than you would think. It doesn’t take long to figure out how much insurance is right for you. Take a couple minutes to fill out these forms, and it may surprise you just how inexpensive it is to insure your family’s well-being if you are gone.