What is Human Life Value?
Let’s understand the human life value meaning in simple words. It’s the total income you are expected to earn in your remaining working years, adjusted for things like expenses, savings, and inflation. Your HLV gives an estimate of the financial support your loved ones would need if you were not there to provide for them.
The human life value calculator takes inputs like your age, income, liabilities, savings etc to give an estimate . For example, if you’re 30 and plan to retire at 60, your future income over the next 30 years is part of the HLV calculation, minus what you’ll spend on yourself.
Knowing your HLV helps you choose the right life insurance plan so your family won’t struggle financially in your absence. It also guides how much cover you should aim for, especially if you have financial liabilities like loans or big milestones like your child’s education coming up.
Why is the Human Life Value Calculator Important?
Most people pick a random figure like ₹50 lakh or ₹1 crore when buying a life insurance policy. But how do you know if it’s enough? That’s where a human life value calculator helps. It removes the guesswork and gives a well-backed estimate that you can plan around.
Helps avoid underinsurance
Choosing a policy with low coverage might leave your family with less corpus than what they need to sustain the same kind of living standards. HLV ensures your coverage is based on real numbers like your income, liabilities, family expenses etc.
Personalized to your life stage
A 25-year-old with no dependents won’t have the same HLV as a 40-year-old with two school-going children. The calculator gives an estimate based on your situation.
Helps with long-term planning
Knowing your HLV helps you pick the right life insurance plan that supports future expenses like your child’s college fees , medical bills etc .
Useful for retirement planning
As you grow older, your HLV goes down, but your retirement goals increase. This calculation gives clarity for your retirement planning, too, helping you prepare for income gaps post-retirement.
Aids in decision-making
Should you buy insurance for more cover or wait for a future time? Should you combine insurance with investment? These are all common questions every person buying life insurance faces. HLV provides a data-driven estimate that helps you make informed decisions.
By using a human life value calculator, you make a thoughtful, informed choice; one that reflects your family’s future financial needs, not just your present salary.
FAQs
Why is human life value important in life insurance?
Human life value is a method for determining how much financial support your family would need in the event of your demise. It helps you choose the right amount of life insurance cover.
Who was the first person to introduce the notion of human life value?
The term "human life value" was introduced by Solomon S. Huebner, known as the Father of Insurance Education.
How can you assess your human life value?
You can calculate your HLV using an online human life value calculator. All you need to do is enter basic details like your age, income, number of dependents, ongoing liabilities, financial goals etc, and it will give you an estimate instantly.
Is the human life value the same for everyone?
It’s different for each person. For example, a 28-year-old single professional will have a different HLV compared to a 45-year-old with two children and a home loan. Some of the factors that change HLV numbers are age, income, lifestyle etc.
How often should I reevaluate my human life value?
You should reevaluate your human life value every couple of years. You must also do this whenever there are major changes in your life, like a new family member being added, a health condition, a job location switch, etc. By staying updated with your HLV, you can better plan for retirement and other financial needs , as the situation demands.
Can a human life value calculator help with retirement planning?
As you plan for your post-retirement years, knowing your current HLV can help you assess the income your family might lose and how much you need to save in order to continue with the same lifestyle. It complements your retirement planning goals by taking away any guesswork.
How accurate are human life value calculators?
A Human Life Value (HLV) calculator provides you with an estimate based on your inputs. Just like any other financial tool, its accuracy depends on how honest and precise your inputs are . It’s a far more reliable approach than guessing and serves as a valuable starting point in selecting a life insurance cover that can adequately support your loved ones’ future financial.
An ISO 9001:2015 
