8. Choosing policies based on circumstances Which insurance policy is best? Hubert and Kate are a married couple in their mid-thirties who are planning to start a family. Kate works as a real estate agent and earns $250,000 year, and Hubert works as a dental assistant earning $40,000 a year. They would like to have two children and are looking to take out a life insuran policy that will provide lifelong coverage in the event of Kate's death. Given her established career, they do not expect much volatility in their future financial situation and prefer a plan that offers consistent premiums over a lifetime rather than one that offers more flexibility without the guarantee of future affordability. Because it offers fixed future premiums, the best option for Kate is a life insurance policy. Suppose, instead, Kate is uncertain as to whether she will want to continue working once she has children, and Hubert is considering going back to school to become a pharmacy technician. They still want a plan that serves as a savings vehicle, but given the uncertainty of their future finances, they might be better off choosing a life insurance