Human Life Value (HLV) Calculator
Human Life Value (HLV) is the present value of the income you would contribute to your family over your remaining working years, after your own living expenses.
Your Human Life Value
₹2.06 Cr
Over 28 remaining working years
Breakdown
Illustrative estimate for planning only, not financial advice. Results depend heavily on the growth and discount rates you choose.
How it's calculated
- 1Work out your annual contribution: your income minus the amount you spend on yourself. This is what your family would lose.
- 2Project that contribution across your remaining working years, growing it each year by your expected income growth rate.
- 3Discount each future year back to today's value using a discount rate, because money in the future is worth less than money now.
- 4Add up the discounted amounts to get your Human Life Value, a widely used basis for deciding life cover.
Why use this
- A more precise, economics-based alternative to a flat income multiple.
- Accounts for income growth and the time value of money.
- Helps justify a cover recommendation with clear reasoning.
- Download a branded PDF to walk a client through the numbers.
Frequently asked questions
What is Human Life Value (HLV)?+
Human Life Value is an estimate of the economic value a person provides to their family, expressed as the present value of their future income after personal expenses. It is one of the most common methods insurers and advisors use to decide how much life cover someone needs.
How is HLV different from the income-multiple method?+
The income-multiple method simply multiplies annual income by a factor like 15. HLV is more precise: it projects your net contribution over your remaining working years, grows it by an expected rate, and discounts it back to today. Use the Term Insurance calculator for a quick figure and HLV when you want a reasoned, defensible number.
What discount rate and growth rate should I use?+
There is no single correct figure. A common approach uses an expected income growth rate in the region of 6 to 8 percent and a discount rate close to a long-term risk-free return. This calculator lets you adjust both so you can test different assumptions.
Should I subtract my personal expenses?+
Yes. HLV measures the income your family would lose, not your total income. The portion you spend only on yourself would not need replacing, so it is deducted to avoid over-stating the value.
Is HLV the exact amount of insurance I should buy?+
It is a strong starting point, but you should also factor in existing cover, outstanding loans, and specific goals. Treat the result as an illustrative estimate and confirm with a licensed advisor.
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