Do you know your or others Human Life Value.

The most used definition of HLV is the expected lifetime earning of an individual, i.e., what is the total income that an individual is expected to earn over the remaining years of his work life. In other word, one can say how much would your family need in your absence. This is a tough question. We have tried at our end to resolve this query.
The most efficient way to do it is to calculate Human Life Value.
Human Life value tells you the appropriate amount of sum assured you need to have at present in case of any uncertainty in future. In other words, it is the amount that your family will require if you are not alive. All good financial planners mostly do try to come out with human life value.
Human Life value is determined by 3 main factors: -
 Age.
 Current & Future Expenses.
 Current & Future Saving.

How to calculate?
Let us take an example, where HLV is calculated for Mr P.Raichowdhury based on the present needs & income. Mr P Raichowdhury aged 43 years has an annual income of Rs 10 lacs, spends 3 lacs on his personal expenses, he has a fixed deposit of Rs 6 lac, he also has a loan of Rs 10 lacs and plans to spends 10 lacs each on his son’s education & his daughter’s marriage. His human life value will be as follows:

Annual Income- 100, 00, 00
Less Expense on Self-including Taxes- 300, 000
Contribution toward family standard of living- 700, 000
Multiplying factor- 15
Gross human life value- 105, 00,000
Less liquid assets- 600, 000
Add liabilities- 100, 000
Add amount to fulfill family needs- 200, 00, 00
Human Life value- 129, 00, 000

* We are not including property or jewelry in the above example.

Age Multiplying factor
Up to 35 years 25 times
36 to 40 years 20 times
41 to 45 years 15 times
46 to 50 years 12 times
51 to 60 years 10 times
61 to 65 years 5 times


HLV is just an idea that how much money one should keep aside for financial security of one’s family. To know the exact HLV you can contact any financial advisors. Once you are aware of the amount, you can choose between various life insurance plans for covering yourself.

What we advice is that if you don’t have any Insurance with you, you should at least go for basic Term Plan which is least expensive Insurance. To check Term plan rates as per your age and all companies click here. Term plans do not provide any returns but will give valuable cash in difficult times.

So the easiest way to do this is Life Insurance.

Different people will have different ideas to secure there family future like investing in properties, but our question would be, the hassles involved in selling property or to a create cash is really difficult.
Where as Life insurance provides liquidity & quick money at the time of emergency in case the bread earner of the family is gone.