Human Life Value (HLV) Calculator
Estimate the life insurance cover you need to protect your family's future.
Parameters
Expected return on investments, adjusted for inflation.
Your Human Life Value (HLV)
0
Additional Cover Required
0
About Human Life Value (HLV)
Human Life Value (HLV) is a number that represents the total economic value of an individual to their family. It helps you calculate the amount of life insurance you need to ensure your family can maintain their standard of living and achieve their financial goals, even in your absence. By calculating your HLV, you can make an informed decision about the right insurance cover instead of picking an arbitrary amount.
HLV = Present Value of Future Income - Liabilities
- Future Income: Calculates the total income you would earn until retirement, adjusted to its current value (present value).
- Liabilities & Assets: The calculator then subtracts your existing savings and insurance cover to find the exact insurance gap you need to fill.
- Discount Rate: This is a crucial factor, representing the rate at which future earnings should be discounted. A common practice is to use the rate of inflation or the return rate of long-term safe investments.