Retirement Advisor: Sometimes You Insure (Podcast)

by: SA For FAs
Summary

American colleges and universities have actually grown quite dependent on the enrollment of Chinese students, and are hence quite vulnerable to the U.S.-China trade war.

But not the University of Illinois, which astutely took out an insurance policy against a declining population of Chinese students before the U.S.-China trade war reached its current dangerous level.

The dean of the university’s business school, Jeffrey Brown, appreciated the risk to the school if it were to face declining enrollment by a group representing 20% of its student body.

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The University of Illinois astutely took out an insurance policy against a declining population of Chinese students before the U.S.-China trade war reached its current dangerous level. The unique contract it fashioned with Lloyd's of London strikes me as akin to a disability income policy.

This podcast (6:06) suggests that advisors must know what kind of insurance is essential for their clients (like a disability policy), but above all, must make sure their clients understand that their advisor is their insurance.