Its been refreshing to have a gathering among good people to have a free exchange of ideas on various issues particularly on the changing financial landscape. Such views as the future of the US financial institutions which are household names, and the likely outcomes of the current aftermath were discussed over a round of good Italian food and wines. It only people from different professions could gather and have more such exchanges then the community could benefit from the outcomes. Alas we live in a world where invariably those who hold the positions think that they know best and hence everyone is made to work within that framework. Why didn't someone stand up and offered a change one may ask? The cost of doing so would be too great, some would say. Others find it the opportunity cost would be too great to give up something where they are benefiting albeit only a fraction of the whole pie. Nonetheless people are inclined to flow with the tide especially if all is at least on the surface seem well. It is like someone coming up to challenge why should we drive on the right side of the road instead of the left. What benefit is there since if any change is made, you to would need to be subjected to all the inconveniences to be retrained. So most people would then focus on their bread and butter and their own businesses and make the most money out of it; and leave others to make their own money in their own way. No point playing the modern day Plato and in the process lose your life, only to be read and admired by future generations.
This then raises the question in a modern day society where everyone is self sufficient, highly educated or skilled, would it then be necessary to buy a life insurance so that your children can be beneficiaries. In the first place, the children are often having their own careers and their own income, and they may find having to benefit from a large insurance bequest may only be a thorn in sibling relationship. Someone may be eyeing a larger pie or the estate if not equally divided may cause the siblings to split up in the process. Hence, it is not surprising that policyholders are cashing out once they think their their children are no longer financially dependent on them for a living. The estate would only be useful if the children are not well off or well educated to be able to sufficiently stand on their own feet. Well that's a thought for you to ponder if you are one of those with multiple insurance policies and you have grown up children who earns more than you did in the past! Besides with all the uproar in the insurance industry what is there to assure the insured that his beneficiaries may get anything useful if the company goes belly up? Think about that...
