Human Life Value (HLV)

What is Human Life Value?

Human Life Vlue (HLV) is the expected life time earnings of an individual, i.e. what is the total income that the individual is expected to earn over the remainder of his working life, expressed in present Rupee terms.

Inflation eats away the value of money, a Rupee today is worth more than a Rupee tomorrow and therefore one needs to suitably 'discount' future earnings to express the value in present Rupee terms.

Persons having Insurable Human Life Value:

HLV is computed only for a person having “earned income” Like salary or business income and rental or interest income is not considered as a part of HLV.

Importance in Financial Planning:

HLV calculation is an important part of Financial Planning as it helps us to know the amount of risk cover required to cover financial loss caused to the family due to untimely demise of the bread earner of the family.

How to calculate your HLV with the help of excel based HLV Calculator:

Input: You need to fill required input:                                       

                   

Output: You will know the HLV required with current risk cover status:

Graphical presentation:

Human Life Value (HLV) Video:

To know your HLV status click to the link below:

https://docs.google.com/spreadsheets/d/1AtKvqxr1iGylFXf8hE8QU3tCGKm0hdygKR7Ycco7ZKU/edit?usp=sharing