没有看懂题目想要对应的是什么知识点，麻烦老师详细解释一下

问题如下：

Later in his meeting with Hamilton, Ryan shares a concern that his daughters do not have enough life insurance. Both daughters are in good health. Hamilton explains to Ryan the role of human capital in assessing a person’s life insurance needs. Ryan provides the following information about his daughters:

• Debra works for a publicly traded financial services company. In addition to her salary, she receives an annual bonus that is directly related to the performance of her company’s equity. Although volatile, her total compensation averages USD 100,000 per year. Debra has an investment portfolio valued at USD 200,000.

• Kelly works for the local city government. She earns USD 75,000 per year. Her job is secure and her salary is stable. Kelly’s investment portfolio is valued at USD 500,000.

Identify one factor that indicates Debra needs:

i. less life insurance than Kelly.

ii. more life insurance than Kelly.

Justify each response.

选项：

解释：

Life insurance protects human capital, which is defined as the present value of future labor income. Information that affects human capital: (1) salary level and (2) correlation between wage growth and risky-asset returns. Higher salary (wages) implies higher future wages and thus higher human capital. Higher correlation implies more volatile (riskier) wages; using a higher discount rate to account for results in a lower value for human capital. The case also provides asset levels for Debra and Kelly. All else constant, financial wealth is a substitute for life insurance. The higher the financial wealth, the lower the demand for insurance.

Less life insurance:

Debra has a higher correlation between wage growth and risky-asset returns because she is employed in a financial firm and part of her income is based on equity returns. Ignoring salary level differential, Debra’s higher wage growth correlation implies lower human capital as her wages are riskier and thus should be subject to a higher discount rate. Therefore, higher wage growth correlation is a factor that reduces life insurance need.

More life insurance:

Ignoring wage correlation differences, Debra’s higher salary (i.e. USD 100,000 for her, compared to USD 75,000 for Kelly) implies higher human capital, thus a higher life insurance need. In addition, financial wealth can be viewed as a substitute for life insurance. Increasing financial wealth reduces the adverse financial impact of human capital loss on surviving heirs. Based on financial wealth, Debra has a higher life insurance need (she has financial wealth of USD 200,000, compared to USD 500,000 for Kelly).