HUMAN LIFE VALUE

Ensure your loved ones are adequately secured

Human Life Value Calculator

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18 years 69 years
Please enter a value between 18 and 69.
40 years 70 years
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1,20,000 5 Cr
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0 2 Cr
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0 10 Cr
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0 5 Cr
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This calculator serves as a guide. The results are generated based on the information provided. It is not intended to be and must not alone be taken as the basis for an investment decision.

What is Human Life Value (HLV)?

The human life value , also known as HLV, is a metric used to identify a suitable sum assured for a life insurance policy. It signifies the present value of your loved ones' future financial needs and includes factors like your future income, expenses, investments and savings and loans and other liabilities.

Additionally, HLV takes into account the inflation rate to ensure that the estimated coverage maintains its value over time.

How to Calculate Human Life Value?

The human life value can be calculated using the following formula:
Retirement
Age
—
Current
Age
Annual Salary
Additionally, you can use the human life value calculator for a quick and accurate result.

Steps to calculate Human life value (HLV)

Below are the steps to calculate human life value:
You need to start by determining your current annual income, including salary, income from passive sources like rent earned from real estate, agricultural income and other similar sources.
You must decide on a retirement age and calculate the number of working years left until you retire.
To calculate your present and future expenses, you need to list your current expenses and estimate future costs like healthcare for a more comprehensive picture.
If you have any loans, such as a home loan or credit card debt, you must also add the value of your outstanding dues.
It is important to ascertain your family's future financial needs in your absence. You must factor in the higher education or marriage expenses of your kids, the future healthcare needs of your spouse & more.
Inflation significantly impacts the value of your savings, so you must understand how it can impact the future financial security of your loved ones.
Based on the findings above, you can calculate the present value of your family’s financial needs that can suffice for your life cover.

Estimate your current Annual Income

You need to start by determining your current annual income, including salary, income from passive sources like rent earned from real estate, agricultural income and other similar sources.
Step
1
Step
2

Calculate the number of working years left

You must decide on a retirement age and calculate the number of working years left until you retire.

Estimate your current & projected living expenses

To calculate your present and future expenses, you need to list your current expenses and estimate future costs like healthcare for a more comprehensive picture.
Step
3
Step
4

Account for current debt & liabilities

If you have any loans, such as a home loan or credit card debt, you must also add the value of your outstanding dues.

Estimate future financial needs

It is important to ascertain your family's future financial needs in your absence. You must factor in the higher education or marriage expenses of your kids, the future healthcare needs of your spouse & more.
Step
5
Step
6

Adjust for inflation

Inflation significantly impacts the value of your savings, so you must understand how it can impact the future financial security of your loved ones.

Calculate Present Value

Based on the findings above, you can calculate the present value of your family’s financial needs that can suffice for your life cover.
Step
7

Frequently Asked Questions


You can recalculate your human life value once a year or in the case of major life events, such as marriage, having children or losing a loved one. Additionally, you are advised to recalculate your HLV if you take on new debt, such as loans.
Calculating human life value is crucial because it ensures you obtain the right amount of life insurance coverage to meet your family's future financial needs. It also accounts for inflation, ensuring that the coverage amount maintains its value over time.
Yes, the human life value differs from person to person as it is calculated based on the unique financial needs of every policyholder and their family.
Personal and financial milestones, such as marriage, having children, losing a job, accumulating debt, change in health status and more, can impact one's human life value.
It is important to consider factors like your budget, financial goals, policy term, type of life insurance suitable for your requirements, riders and the reputation of your insurer when purchasing a life insurance policy.
Picking out the right life insurance cover can be a bit confusing. Firstly, you are selecting an amount for the future, so you must take into account the rising rate of inflation. Secondly, you are preparing for a time when you may not be around, so it is vital to pick a foolproof amount that will leave your loved ones feeling financially secure. While there is no right or wrong amount, it can help to choose at least ten times your current annual income to ensure you are able to tackle inflation and cover your family’s diverse needs. In addition to this, if you have any pending loans, count them in along with their interest, so your dependents are not burdened by your debt liabilities.
The right amount of life insurance offers your family members financial protection to accomplish goals like higher education, a decent standard of living, a life of dignity and adequacy, and more. When you know your loved ones are always around for you, you are far more likely to be at peace and live a stress-free life. Life insurance also protects your spouse and children under the Married Women’s Property Act (MWP Act). This helps them receive the entire life insurance claim without the fear of creditors or relatives eating into their share. On the contrary, not having the right amount of life insurance leaves you hanging in the loop, unsure about how your family will cope with a sudden loss and continue their lives as before.

COMP/DOC/Jul/2019/47/2474

COMP/DOC/Aug/2024/18/6802

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