The Human Asset

The Human Asset: A human being is an income generating asset. One's income generating ability depends on one's skills, (manual, professional, problem solving, entrepreneurial, etc). These are the assets. The value of the asset can be measured by considering the income that is generated by the person concerned. The concept of Human Life Values, provides scientific ways to determine the asset value of the human life and therefore, the amount of life insurance required. These techniques, like other techniques related to selling, will have to be learnt on the job.

The Human Asset also can be lost through unexpectedly early death or through sickness and disabilities caused by accidents may or may not happen. Death will happen, but the timing is uncertain. If it happens around the time of one's retirement, when it could be expected that the income will normally cease, the person concerned could have made some other arrangements too meet the continuing needs. But if it happens much earlier when the alternate arrangements are not in place, there can be losses to the person and dependents. Those dependent on the income are helped to overcome their difficulties, by insurance.

The Human Asset:A person, who may have made arrangements for his needs after his retirement, also would need insurance. This is because the arrangements would have been made on the basis of some expectations like,  likely to live for another 15 years, or that children will be able to look after the aged parents. If any of these expectations do not become true, the original arrangement would become inadequate and there could be difficulties. Living too long can be as much as problem as dying too young. Both are risks, which need to be safeguarded against. Insurance take care.

Thus, the risks in the case of a human being are related to

• Early Death
• Living too long
• Disabilities
• Sickness
• Unemployment

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