Investing in the stock market is not an ideal match for everyone.
Risk profiling is one way that insurance and financial advisors can better understand client needs.
Some people jump out of airplanes for fun. (For some reason, insurance companies hesitate to insure them.) Other people don’t care to take any risk: They’d keep their money in the mattress if they weren’t so worried about moths.
Still others, sensing what the future may hold, are too uncomfortable about uncertainty to buy green bananas.
Are all of these people an ideal fit for investing directly in the stock market?
Of course not. Investing in the stock market comes with uncertainty. Some clients might be a better fit for insurance investment and annuity products, even if that holds down returns.
The slideshow above illustrates eight reasons that some people might prefer to invest in insurance products over playing the stock market.
This article first published on ThinkAdvisor.com.
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