bpdulog

It is Max. High correlation to stock market means earnings more volatile, so PV of human capital is less . Hence less insurance is needed

Windjammer

wrong response... More volatility in HC - less need for Life insurance... So Max needs the Life Insurance more -- since his entire life is planned around getting that much needed money in on a regular basis.

HC and Life Insurance are negatively correlated.

CP

former

Max. Low correlation with the market means it is more reliable, which makes the PV of future eanings greater