Human Life Value Calculator
HLV Details
Human Life Value (HLV)
₹1,80,27,541
The economic value of your future earnings to your family.
Insurance Shortfall
₹1,80,27,541
Additional term insurance cover you need right now.
Ideal Insurance Cover Over Time
Why does it decrease?As you age, you have fewer working years left to replace, and you ideally build up assets (like a home and retirement corpus) that naturally replace the need for life insurance.
Don't mix insurance with investmentNever buy endowment or ULIP policies for life cover. Buy a pure Term Insurance policy for the HLV amount and invest the remaining money in Mutual Funds.
What to do next
Based on your Human Life Value Calculator, here are the tools you should try next:
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Don't Guess Your Life's Worth: The Math Behind Term Insurance
When buying term insurance, most people use a highly unscientific method: they pick a round number that sounds big. "One crore sounds like a lot of money, let's go with that." But is ₹1 Crore actually enough to replace your income for the next 20 years, educate your children, and pay off your home loan?
This is where Human Life Value (HLV) comes in. HLV calculates the exact present economic value of your future earnings to your family. It strips away emotion and looks at you as a financial engine. If that engine stops tomorrow, how much capital does your family need to generate the same income stream until your expected retirement?
The calculation factors in your current age, retirement age, income, and importantly—your personal expenses. After all, if you pass away, the money you spent on yourself (travel, clothes, food) won't be needed by the family.
As you age and build assets (like mutual funds and a paid-off house), your HLV naturally decreases because your family requires less insurance to survive. This is why you should never mix insurance with investment. Buy a pure Term Life policy for your exact HLV, and invest the massive premium difference into equity mutual funds.
Frequently Asked Questions
What is Human Life Value (HLV)?
HLV is the present economic value of your future earnings. It tells you exactly how much money your family would need today to replace your income for the rest of your intended working years.
Why deduct personal expenses?
If you pass away, the money you spent on yourself (travel, food, hobbies) is no longer required by the household. HLV only replaces the income your family actually depends on.
Why does HLV decrease as I get older?
Because you have fewer working years left to replace. Also, as you age, you ideally build assets (mutual funds, paid-off home) that naturally replace the need for insurance.
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