Although it is not yet law, the Division 296 tax should be taken into account when it comes to investment strategy and planning, particularly in relation to any end-of-financial-year contributions into super.

Tax for higher account balances

The new tax follows a Federal Government announcement it intended to reduce the tax concessions provided to super fund members with account balances exceeding $3 million.

Once the legislation passes through Parliament and receives Royal Assent, Division 296 will take effect from 1 July 2025. Division 296 legislation imposes an additional 15 per cent tax (on top of the existing 15 per cent) on investment earnings of a super account where your total super balance exceeds $3 million at the end of the financial year.ⁱ

The extra 15 per cent is only applied to the amount that exceeds $3 million.

Given the complexity of the new rules, it is important to seek professional advice so you can make informed decisions.

How the new rules work

A crucial part of the new legislation is the Adjusted Total Super Balance (ATSB), which determines whether you sit above or below the $3 million threshold.

When assessing your ATSB, the ATO will consider the market value of assets regardless of whether or not this value has been realised, creating a significant impact if your super fund holds property or speculative assets. The legislation also introduces a new formula for calculating your ATSB for Division 296 purposes.

The legislation outlines how deemed earnings will be apportioned and taxed, based on the amount of your account balance over the $3 million threshold.

Negative earnings in a year where your balance is greater than $3 million may be carried forward to a future financial year to reduce Division 296 liabilities. If you are liable for Division 296 tax, you can choose to pay the liability personally or request payment from your super fund.

Strategic rethink may be needed

For many fund members, superannuation remains an attractive investment strategy due to its favourable tax treatment.ⁱⁱ

But those with higher account balances need to understand the potential effect of the Division 296 tax. For example, given the new rules, you may need to consider whether high-growth assets should automatically be held inside super.

Holding long-term investments that may be more difficult to liquidate, such as property, within super may be less attractive in some cases, because the new rules create the potential to be taxed on a gain that is never realised. This could occur where the value of an asset increases during a financial year but drops in value by the time it is actually sold.

For some, holding commercial property assets (such as your business premises) within your SMSF may be less attractive.

It will also be important to balance asset protection against tax effectiveness. For some people, the asset protection provided by the super system may outweigh the tax benefits of other investment vehicles, such as a family trust.

Division 296 will require more frequent and detailed asset valuations, so you will need to balance this administrative burden with the tax benefits of super.

Estate planning implications

Your estate planning will also need to be revisited once Division 296 is law.

The tax rules for super death benefits are complex and should be carefully reviewed to ensure you don’t leave an unnecessary tax bill for your beneficiaries.

If you still have many years to go before retirement and hold high-growth assets in your fund, you will need to closely monitor your super balance.

If you want to learn more about how Division 296 tax could affect your super savings, contact our office today.

i https://treasury.gov.au/sites/default/files/2023-09/c2023-443986-em.pdf
ii https://www.ato.gov.au/individuals-and-families/super-for-individuals-and-families/super/growing-and-keeping-track-of-your-super/caps-limits-and-tax-on-super-contributions/understanding-concessional-and-non-concessional-contributions

The post Understanding the new $3m super tax appeared first on HTA Wealth.

Some had expected an end to the Reserve Bank’s continued cash rate rises during the year. Instead, inflation has been a stubborn foe and we saw five rate rises, adding another 1.25%. But there was good news for property investors with an increase in prices in some cities.

On another positive note, superannuation funds bounced back after losses in 2022.i SuperRatings reported that the median balanced option is expected to return 9.6% in 2023, after most funds produced negative returns the previous year.

The big picture

Global economic forecasts for 2023 were also beset by a number of wild cards during the year. While many economists were predicting recession in the United States and Europe and a rebound in China, the year ended differently with no recession in the US, Europe struggling but doing better than expected and China still battling some headwinds.
October brought concerns of a wider Middle East conflict, the International Monetary Fund revising its outlooks for the region, saying that an escalation of the conflict could be far-reaching, affecting tourism, trade, and investment.ii

Inflation and interest rates

In Australia, economic growth slowed a little on 2022’s result but still delivered a better return than forecast. On the latest data available from the end of September, the economy grew by 2.1% although a larger-than- expected increase in the population is putting extra pressure on housing and prices, keeping inflation higher.iii It was the eighth quarter in a row of economic growth.

The rising cost of living is proving harder to tame than hoped or expected despite continuing cash rate rises. 

Consumer prices rose 1.2% during the quarter and 5.4% over the year. On a CPI basis, rents rose 7.6% in the past twelve months, which was the largest annual increase since 2009.iv 

The Reserve Bank continued its battle to get inflation under control, raising the cash rate five times to finish the year at 4.35%. 

Sharemarkets 

Global sharemarkets ended 2023 on a more positive note. In the US, welcome news from the Federal Reserve of an end to rate hikes saw stocks and bonds soar in the final weeks of the year. During the year, the Dow Jones index increased by 13.7% and the Nasdaq by 43.4%.

There was mixed news in Asian markets with a jump of 28.2% on the Nikkei 225 and 18.7% on India’s BSE Sensex but China’s Shanghai Compositive fell 3.7% and the Straits Times index of Singapore was down 0.3%.v

Australia’s sharemarket may not have experienced the heady double–digit returns of some global markets but it ended the year with a gain of almost 8%, marking its best performance since 2021.vi

Commodities 

Despite big falls from the peaks of 2022, commodity prices remain high across the board. 

Iron ore, Australia’s biggest export, rose more than 21% as the Chinese government continues to create strong demand by stimulating property and infrastructure development. 

Oil prices saw some spikes during the year but steadied by December. However, the World Bank notes that conflict in the Middle East, on top of the disruptions caused by the war in Ukraine, could cause a major oil price shock, pushing global commodity markets into uncharted waters.vii 

As the US dollar gathers strength and Australia’s high inflation figures persist, the Australian dollar is under pressure. It ended the year where it began after recovering from a slide in the second half of the year. 

Property market 

While rising interest rates usually dampen property prices, by year’s end we saw a remarkable turnaround for some cities in another result that upended forecasts. 

CoreLogic’s national Home Value Index rose 8.1% in 2023, up from the 4.9% drop in 2022 but not quite at the stellar 24.5% increase recorded in 2021.viii 

It was a patchy performance across the country. House prices rose at more than 1% every month on average in Perth, Adelaide, and Brisbane in the second half of the year.

While Melbourne values dropped in November and December, Sydney and Canberra prices barely moved, and Hobart and Darwin prices fell slightly. 

Looking ahead 

As floods and storms ravage the eastern states and bushfires break out in the west, another tumultuous Australian summer might be mirrored by a chaotic year for the economy both in Australia and overseas. 

The RBA expects economic growth to remain subdued but resilient in 2024, largely supported by construction and infrastructure work. Meanwhile the rebound in international students and tourism is expected to contribute to robust growth in consumer spending.ix  The RBA is also confident that inflation will continue to fall slightly throughout the year, but many predict at least one more cash rate increase during the year. 

Worldwide, China’s spluttering economy and the outcome of the US presidential election may cause ripple effects across the globe, meanwhile markets will be nervously watching the conflicts in the Middle East and Ukraine as well as China’s threat to blockade Taiwan, for the potential to create broader economic challenges. 

If you would like to discuss your financial goals and circumstances in the light of prevailing economic conditions, don’t hesitate to get in touch. 

Note: all share market figures are live prices as at 31 December 2023 sourced from:

https://tradingeconomics.com/stocks. 

https://www.afr.com/policy/tax-and-super/super-balances- grow-almost-10pc–thanks-to-tech-rally-20240103–p5euwb 

https://www.imf.org/en/Blogs/Articles/2023/12/01/middle- east–conflict-risks-reshaping-the–regions–economies 

iii https://www.abs.gov.au/media-centre/media-releases/ 

australian–economy–grew–02–cent-september–quarter 

iv https://www.abs.gov.au/articles/11-things-happened-australian–economy-during–september–quarter 

V  https://www.businesstoday.in/markets/story/global-market- performance–heres-how-global-equity-markets-major- currencies-performed–in-2023-411391-2023-12-31 

vi https://www.abc.net.au/news/2023-12-29/asx-markets-business–live-news–dec29-2023/103271578 

vii October 2023 Commodity Markets Outlook: Under the Shadow  of Geopolitical Risks [EN/AR/RU/ZH] – World|ReliefWeb 

viii https://www.corelogic.com.au/news-research/news/2023/australian–home-values–surge–in-2023 

ix https://www.rba.gov.au/speeches/2023/sp-ag-2023-11-13.html

The post 2023 Year in review: defying predictions appeared first on HTA Wealth.

So regardless of whether your health has declined or you’ve taken up new activities, they cannot revoke your cover or change what you’re covered for.

For example, if you’re diagnosed with diabetes or even choose to start base jumping two years after you take out your policy, you’re guaranteed to have the same cover, for the same price. In fact, you don’t even have to tell your insurer about these changes.

An added benefit of this is that when most insurers make improvements to policy terms that benefit you, they will automatically include them in your existing policy – at no extra cost.

There’s more…

If your occupation becomes riskier, you don’t have to tell your insurer. But if you do, they generally won’t increase premiums, insure you for less, or change your benefits. However, if your occupation becomes less risky, make sure you tell your insurer as your premiums could be reduced. ‍

The movement here is completely in your favour.

And more…

Look into future insurability, where you can increase your cover without any medicals when major life events occur (e.g. you get married or take on a larger mortgage).

The bottom line is, once an insurer takes you on, they take on the risk. So no matter how your behaviours change, you’re guaranteed the terms of your policy from the day you took it out. And, in some instances, you can improve your benefits, or reduce your premium, without additional risks or costs.

Want to know more?

If you’d like to discuss any of the content in this article and how it may apply to you, please call me on 03 9810 3666.

The post The insider’s advantage appeared first on HTA Wealth.

As the world changes, having certainty about your cover has never been more important. From our research, customers told OnePath Life they found Life Insurance:

• Complicated
• Something we do not like to think about
• One of life’s many expenses.

For this reason, I’m reaching out to you to help you understand why your [life insurance] premium has increased – so I can give you the best advice on what to do next.

• It’s important to first understand how life insurance works

Insurance works by pooling together the premiums of customers, just like you. This pooling system makes sure that customers who experience loss (and need to claim) are protected. Not everyone will claim at the same time and some people may not need to claim at all – but everyone benefits from the peace of mind protection brings.

Life insurance is designed in a way that makes sure:

• Everyone in the pool benefits from the peace of mind in knowing that the pool is there and full.
• Everyone has the same opportunity to claim from the pool, should life throw a curve ball at them
• Everyone contributes their fair share based on their health, which is determined through the underwriting process.

At the end of the day, that’s what products like [insert product here] are designed to do – help you recover when the unfortunate occurs. 

• You can be confident that if something were to happen, your claim would be paid

In life you cannot predict, but you can protect – and you have more certainty than you may think. Most life insurers pay over 90%* of the claims they get in.

Insurers are in the business of paying claims. That’s why they exist.

• How premiums are calculated

There are many factors that can impact your premium, and some of these factors are changing dramatically across the population.

When calculating your premium, life insurers assess factors related to you specifically:

• Personal risks – hobbies and occupation
• Age and sex – risk profiles
• Level of cover – more cover means higher premiums.

In addition, life insurers assess other factors related to all of their customers, such as claims rates against expectations.

They look at things like:

• How many new claims they think will come in; and
• How quickly people on Income Protection claim will get better and return to work

It’s here that the industry is seeing major changes against expectations.

• The reality is the life insurance industry is seeing more Income Protection claims go for longer than anticipated.

Did you know that over the last 5 years, Australia’s life insurance industry has made $3.4 billion dollar losses?^

This has been driven by many factors, but largely by accident claims and the large mental health crisis our country faces.

From 2014 – 2018

• Mental Health claims costs have increased by 32% #
• Accident claims costs have increased by 45% #

One of the jobs an insurer must manage is to ensure that the premiums collected are of a level to ensure claims can be paid, so they can continue to offer the critically important protection Australians need.

• What will happen to your insurance policy?

Note: Include and update the below as necessary>

You can expect;

1. Your Income Protection cover cost will increase by X%
2. Your [insert cover]cost will increase by X%
3. These increases to be in addition to any age or CPI increases
4. These increases are across both stepped and level premiums.

What this price review hasn’t changed:

1. Your level of coverage – you are still covered
2. Your ability to claim – should any curve balls come your way
3. A claims process designed to get you the money and support you need as soon as possible
4. And most importantly…your peace of mind. Rest assured you have coverage to help protect yourself and your family during these uncertain times.

All customers with cover like yours will experience the same rate of increase at renewal time – no one will be treated differently. In fact, many of the largest life insurers in the country have increased their premiums over the last 12 months.

• I am here to help

Knowing what your options are in light of these changes is important.

That’s why I’m here – to help you reflect on your needs and to make sure you know exactly what to do next

If you’re concerned about your insurance premium, please let me know. We have control over the costs of your cover, and I can work with you to:

• change your cover type from a comprehensive cover type to a standard one
• remove some extra-cost options you may have selected
• lower your amount insured
• switch off indexation (which increases your amount insured to protect against inflation) at your next policy anniversary
• extend your waiting period on your income protection policy (i.e. the time it takes for benefit payments to start after you stop working)
• reduce your benefit period on your income protection policy (i.e. the total amount of time you may be eligible to receive income protection benefits).
• explore the opportunity for tax deductions for your premiums. If you’re eligible, this can help to reduce the impact of premium increases.

Want to know more?

There are other options we can explore as well – click here to see other ways I can help you manage the costs of your premium. [you can insert a link to our white labelled affordability and support article, found at www.onepathclarity.com.au/engage]

If you’d like to discuss any of the content in this article and how it may apply to you, please call me on 03 9810 3666.

Sources:

*moneysmart.gov.au/how-life-insurance-works/life-insurance-claims-comparison-tool

^ APRA, losses are before tax in respect of the 5 years ended 30 September 2019

# KPMG Disability Income Insurance Data Experience Analysis 2020

The post Why life insurance premiums are increasing. appeared first on HTA Wealth.

Making sure your plans match your situation

With the world changing around us, so to do our needs, making it an ideal time to ensure to review you’re protecting what matters and ensuring it fits with your financial situation.

If you’re in difficulty we can help

Now more than ever may be a time for financial ‘breathing space’ – which is why we have compiled a list of available options to help you manage the cost of your life insurance.

All options are generally subject to the terms and conditions of your cover, which I can help you with.

Flexible product and payment options

The options listed below are specific to some insurers, however most providers would provide similar which would be worth confirming.

COVER SUSPENSION

‍How it works  Cover Suspension is a temporary offer where you can suspend your cover and premiums for between three to six months, and OnePath will reinstate your cover at the end of the period without any health or financial checks.

COVER BOUNCE-BACK

How it works  Cover bounce-back is a temporary offer for customers not on claim, to reduce the amount insured on a stepped premium policy. Cover can be reduced to any amount above the minimums stated in the Product Disclosure Statement (PDS).

CHANGE FROM FULLY FEATURED TO LESS FEATURED

How it works  Most OnePath OneCare cover types offer different levels of cover. You may be able to reduce your premium by changing from a cover option with more in-built benefits to an option with fewer in-built benefits.

REMOVE SOME EXTRA-COST OPTIONS YOU MAY HAVE SELECTED

How it works  Removing some of your extra-cost benefits and options will help to reduce your premium, but will reduce the breadth of your cover.

CHANGE PAYMENT FREQUENCY

How it works  You can change your payment frequency, for example, you could switch your payment frequency to monthly or half yearly (this would incur an additional charge for paying monthly or half-yearly).

APPLY AND BE ACCEPTED TO CHANGE TO NON-SMOKER RATES

How it works  Smokers  generally pay a higher premium than non-smokers. If you’ve quit smoking for more than one year, you can apply to have this loading removed, which would reduce your premium if accepted.

REVIEW PREMIUM LOADINGS

How it works   Poor health and/or dangerous pastimes may add what’s called a ‘premium loading’ to your cover – which means you pay a higher premium than someone who doesn’t have those risk factors. If your health has improved or your pastimes have changed, you may be able to get these loadings removed.

LOWER AMOUNT INSURED

How it works‍ Reducing your level of cover is a simple way to reduce your premium, bearing in mind this will reduce the benefit amount you will receive for a claim.

SWITCH OFF INDEXATION

How it works   Indexation is an in-built benefit that increases your cover level each year to protect against inflation. Switching indexation off means your level of cover won’t increase at your next policy anniversary, it generally means that it may reduce your premium.

PREMIUM FREEZE

How it works‍   If you have stepped premium this allows you to fix your premium so it won’t increase at your next policy anniversary. This means the amount you are covered for generally reduces so your premium can stay the same as you age.

CHANGE INCOME PROTECTION FROM AGREED TO INDEMNITY

How it works  With an Indemnity benefit payment type, the amount you receive will be determined by covering the lesser of your actual income in the two years before the claim and your monthly amount insured  (which could mean you receive less than the amount insured).

This is opposed to a ‘Guaranteed’ or ‘Agreed’ payment type where, at Total Disability claim time, your amount insured won’t be adjusted if your income has decreased.

Choosing an Indemnity payment type typically reduces your premium.

INCREASE INCOME PROTECTION WAITING PERIOD

How it works  The waiting period is the number of days before you become eligible to claim, starting from the date the doctor confirms you are disabled. Choosing a longer waiting period typically reduces your premium.

REDUCE BENEFIT PERIOD

How it works   The benefit period is the maximum amount of time you can receive income protection payments for the same or related disability. Choosing a shorter benefit typically reduces your premium.

REMOVE INCREASING CLAIM OPTION

How it works   This extra-cost option means your benefit payments will increase while you’re on claim to help keep up with inflation. Removing this option will reduce your premium but will mean while you are on claim your benefit will not increase.

EXPLORE THE OPPORTUNITY FOR PREMIUM TAX DEDUCATION

How it works    When you hold income protection outside superannuation, those premiums are generally tax-deductible, which can make it significantly more cost-effective to get the cover you need. You may also be able to hold an income protection policy inside super. However, with cover in a superannuation policy, features are generally more restricted.

PREMIUM PAUSE FOR 12 MONTHS

How it works   If you become unemployed or take long-term leave from work, you can request to pause your premium payments for up to 12 consecutive months. Terms and conditions will vary between providers.

PREGNANCY PREMIUM WAVIER

How it works   Your premiums will be waived for up to six months if you are pregnant. Your cover will continue during this time.

PREMIUM AND COVER SUSPENSTION

How it works   You can suspend your premiums for up to 12 months if you are:

• Unemployed
• On sabbatical, maternity, paternity or long-term leave from work, or
• Experiencing financial hardship due to your household income for the last three months reducing by more than 30%.

CHANGE YOUR COVER FROM OWN OCCUPATION TO ANY OCCUPATION

How it works   Generally there are two types of TPD definitions:

• Own occupation – Where your claim is assessed against your ability to perform the specific requirements of the job you currently do, or;
• Any occupation – Where your claim is assessed against your ability to perform any job you are qualified or suited to based on your education training or experience

Given the differences described above for an ‘Any Occupation’ definition, premiums are generally lower.

CHANGE YOUR TRAUMA COVER TYPE

How it works    Trauma Cover comes in three cover types – Severity, Comprehensive and Premium – that offer different levels of protection. Different cover types cover a different number of trauma conditions that pay a full benefit, and trauma conditions that pay a partial benefit.  Depending on the cover you currently have, you may be able to reduce your premium by switching cover types.

We’re committed to supporting you gaining the best value that meets your personal needs and insurance objectives.

Call us on 03 9810 3666 to discuss the best options for lowering your premium specific to your circumstances.

The post As the world changes, we’re here to support you appeared first on HTA Wealth.

Deep down, most of us probably know that’s a good investment in our future. But the truth is many people struggle to engage with life insurance enough to actually buy it. And for those that do, more struggle to keep it, review it and feel comfortable with it.

Some of the issues are based on effort – life insurance isn’t an easily accessible product, and it requires people to read an entire product Disclosure Statement (PDS) or spend a lot of time with financial advisers if they really want to understand it.

However, some of the issues people have in engaging with life insurance are rooted in natural human behaviour, and research in behavioural science allows us to understand what those causes are.

We’re overconfident

A famous American study found that 93% of American drivers rate themselves as better than average[i].  

Obviously that is statistically impossible and can’t be true. However people often fall prey to something called comparative optimism, which simply means we often think we’re “better than average”.

We think that good things are more likely to happen to us, whereas bad things are more likely to happen to others.

This overconfidence tends to make us think life insurance is more relevant for other people than it is for us, even though that’s probably not the case.

We only respond to things that come to our mind easily

Availability heuristic is a term that describes how things that come to mind more easily are believed to be far more common, and more accurate reflections of the real world[ii].

For example, reports of shark attacks and airplane accidents often lead people to believe that such events are much more typical than they truly are.

This sheds light on why surfers on Australia’s east coast have started taking out shark attack insurance. About 15 people are attacked by a shark each year, and around 1 is fatal[iii]. Yet statistically, people are more likely to be struck by lightning (about 10 people die each year from lightning strikes in Australia, with a further 100 injured),[iv] let alone suffer a heart attack like over 7,000 Australians each year[v].

Because a lot of the events that lead to life insurance claims aren’t necessarily newsworthy, or don’t come to mind as easily, we tend to underestimate the likelihood of them happening to us.

We dislike uncertainty and ambiguity

The Ellsberg Paradox states that we have a tendency to favour the known over the unknown – including known risks over unknown risks[vi].

A simple example is how avoidance of uncertainty leads people to avoid participating in the stock market due to the unknown risks, with many preferring to lock in a known interest rate[vii].

With our health, and therefore our life insurance, it’s difficult for us to estimate our chance of ever needing to claim, which can make it very hard to see the relevance of life insurance.

We struggle to empathise with our future selves

People naturally find it very hard to imagine what it’s like to be in any emotional state other than the one they’re currently in. This is called the hot-cold empathy gap[viii].

For example, when a person who is dieting feels full, they struggle to determine how well they will be able to handle the temptation to eat certain foods later, at a time when they’re going to be hungry.

Given the many emotions we experience in daily life, it’s very difficult for us to predict how we will behave or make decisions in the future.

We might take out insurance in a rational state, but when our premium goes up we may ignore the rational factors of the decision and respond more emotionally. That can prevent us from holding on to life insurance cover we really need

We sharply discount the future compared to the present

The further out in the future benefits are, the less value they are perceived to have[ix].

This carries through to many parts of life. We have wonderful intentions for ourselves. Our future selves have excellent self-control, make responsible financial decisions and choose to eat healthy. But most of the time our diet starts tomorrow, and that rainy day saving keeps getting pushed back.

In the present moment our choices are impatient and we seek immediate gratification. This is called our present bias.

It’s no wonder we find it difficult to pay small insurance premiums today for the benefit of larger protection in the future – we’re just not wired for it.

We can become overloaded by options

The abundance of options we’re presented with is well intentioned and based on a simple assumption: more choice means more freedom.

But having too many options is actually associated with lower satisfaction, sometimes even unhappiness – causing us to simply go with a default option, and even delay or avoid making the choice altogether. This is an experience called choice overload^[x].

In the case of life insurance, we’ll often outsource our decisions to experts, whether that’s a professional in the field such as a financial adviser, a ratings agency or comparison site which simplifies the choice to a recommendation score. That can help us make confident choices from a vast array of product offerings.

The conclusion? Life insurance saves us from ourselves

We’ve evolved to make decisions in the present about simple trade-offs and risks we face right in front of us. But the modern world is full of complex decisions involving risks and far-off future benefits, which can make it hard to know what’s best for us.

Life insurance can help you avoid the traps and pitfalls of complex decisions, as it’s designed to accurately assess and price your personal risks.

Additionally, if you have life insurance, you help to control some of the natural behaviours people tend to exhibit. Having cover in place helps to mitigate against any negative outcomes associated with these behaviours, such as a tendency to be overconfident, or avoid uncertainty.

Importantly, life insurance allows you to be confident that you’ve got the protection you really need for yourself and the people you love.

Want to know more?

If you’d like to discuss any of the content in this article and how it may apply to you, please call me on 03 9810 3666.

1. Svenson, Ola (1981). Are We All Less Risky and More Skillful than our Fellow Drivers?. Acta Psychologica. 47. 143-148.
2. Tversky, Amos; Kahneman, Daniel (1973). Availability: A heuristic for judging frequency and probability. Cognitive Psychology. 5 (2): 207–232.
3. https://www.abc.net.au/news/2017-02-22/how-deadly-are-your-regular-activities-the-conversation/8293356
4. https://www.abc.net.au/news/2017-11-30/how-to-be-safe-in-a-lightning-storm/9205742
5. https://www.heartfoundation.org.au/about-us/what-we-do/heart-disease-in-australia/heart-attack-fact-sheet
6. Ellsberg, D. (1961). Risk, ambiguity, and the savage axioms. The Quarterly Journal of Economics, 75(4), 643-669.
7. Easley, D., & O’Hara, M. (2009). Ambiguity and nonparticipation: the role of regulation. The Review of Financial Studies, 22(5), 1817-1843.
8. Loewenstein, G. (2005). Hot-cold empathy gaps and medical decision-making. Health Psychology, 24(Suppl. 4), S49-S56.
9. Laibson, D. (1997). Golden eggs and hyperbolic discounting. Quarterly Journal of Economics, 112, 443-477.
10. Schwartz, B. (2004). The paradox of choice: Why more is less. New York: Ecco.

The post The science behind why we need life insurance appeared first on HTA Wealth.