Chuckrox

Mechanics are:
human cap = PV of all your future earnings discounted back to today.
insurance is a substitute for human cap
if earnings are volitile you discount at a higher rate, making PV (human capital) lower
if the PV (human capital) is lower, one would need less of a substitute to replace it - relative to someone with a higher PV.

I hate it...but I accept it.