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Human Life Value Calculator

Human Life Value Calculator

What is HLV? 

HLV stands for Human Life Value. It is the number that indicates the current value of future income expenses, liabilities, and investments. The indicator helps estimate the amount that would be required to provide financial security to your family in your absence.  

What is Human Live Value Calculator?

Human Life Value calculator is an online tool that helps individuals recognize their insurance needs. The calculator can help analyze the amount your dependents would require to live their life without any financial strain in your absence. 

Human Life Value Calculator

Find out how much would your family need to continue leading the life that you have created for them, even in your absence
years old

How is Human Life Value Important?

You cannot measure the value of human life, but you can measure the amount the dependents would need in case of the breadwinner’s unfortunate demise with an HLV calculator. Here’s why Human Life Value is essential:

1. You Can Choose an Adequate Life Cover:

The last thing you would want is to choose a life cover that is inadequate to meet your family’s financial demands. That’s why selecting an adequate life cover is of utmost importance. However, it can be a complex task since it involves several calculations and thinking. Nevertheless, thanks to a Human Life Value calculator, you can choose an adequate life cover as it measures the economic worth you create for your dependents.

2. Human Life Value Takes Inflation and Liabilities into Consideration:

Most individuals only consider their expenses to decide how much their family would need to live comfortably. However, what they forget to think about are the liabilities and inflation. Liabilities don’t end with the person, instead, the responsibility lands on those who are left behind. Additionally, inflation hurts your savings and life cover as it can reduce their value over time.

A Human Life Value calculator, however, considers both liabilities and inflation to calculate your ideal life cover, 

How to Calculate Human Life Value?

Human Life Value is calculated based on the following:

1. Your age  

2. Your current monthly expense

3. Your savings and investments

4. Loan amount you need to pay  

5. Amount you are covered for

6. Amount you to need to fulfill your future goals

Once you have all the above information, you can follow these steps for a need-based approach:

Step 1 - Calculate your current income.

Step 2 – Deduct your expenses, premiums, and income tax payments.

Step 3 – Calculate the number of earning years left before your retirement.

Step 4 - Find discounting factor rate and inflation rate.

Step 5 - Determine the present value of the required income stream after including inflation.

The Second Approach is called the Income Replacement Method. This method calculates the HLV based on your annual income.

= Annual Income x Years till Retirement

These steps might require numerous calculations. Therefore, it’s suggested that you use an HLV calculator to make your work easier. 

How Much Life Insurance Cover do you Need?

Selecting the right life insurance coverage can be a complicated task, given that you must analyze your current spending, project future costs, and much more. Therefore, no one life insurance coverage amount is suitable for every individual.

As life insurance prepares for the future, you must consider all your family’s expenses. This includes living expenses, medical expenses, education, marriage, and more. In addition to this, you must also consider inflation. If you don’t, your life cover can prove to be inadequate. Liabilities and debts should also be considered as they can take up a significant amount of the sum assured to your family. When you have considered all of this, multiply it with the number of years you have left until retirement, and you will have your ideal life cover.

If the calculations seem complex to you, a Human Life calculator can come to your rescue and do all the work you need. 


Q1. Who invented HLV?

Dr Solomon S. Huebner originated the concept of Human Life Value.

Q2. How can you assess your Human Life Value?

Human Life Value can be assessed based on age, income, years till retirement, occupation, income, and employment benefits.

Q3. How is human life value in insurance calculated with example?

Let’s understand the calculation of human life value through the Income Replacement Approach mentioned above:

If Rahul is a 30-year-old working professional with an annual income of 10 Lakh INR, his human life value would be,

(60-30) x 10,00,000 = At least 3 crores.

Q4. What is the right amount of life insurance?

The right amount of life insurance is the one that is adequate to meet your family’s financial requirements. There is no definite number that works for everyone. The ideal life insurance cover can be calculated after calculating your expenses and liabilities. In addition to this, it should also consider inflation.

Q5. How to Access Human Life Value?

You can access human life value with the help of an HLV calculator. The calculator is easy to use and considers inflation and liability to give you the approximate amount your family would need in your absence. With Human Life Value, you can easily choose the right insurance cover for your family.


ARN: PCP/HLV/120224

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