What is HLV Calculator and how to use it?

  • Life Insurance



When you set out to buy a life insurance plan for yourself, there are many small and large choices you need to make. For starters, here are some of the initial decisions you need to make:

  • The kind of life insurance plan you want
  • The insurance company from whom you want to buy your life cover
  • The period over which you want the cover to be valid
  • The add-on riders you wish to buy, if any

But along with all these parameters, there’s one other factor that you need to put a great deal of thought into choosing. And that is the amount of coverage you wish to purchase.

How much life insurance do you need?

Your life insurance plan should give you adequate coverage. Otherwise, the financial benefits offered by the policy may not be sufficient to protect your loved ones in your absence, or to help you achieve your life goals as planned. So, before you purchase a life insurance policy, you need to get a good idea of the amount of coverage you need.

Ideally, depending on the purpose for which you buy a life insurance plan, your life cover should be able to cover the following costs or items –

  • Your family’s everyday expenses for the foreseeable future
  • All the debts and liabilities in your name
  • The cost of your major life goals, like your children's education costs, their wedding expenses, your retirement needs, etc.

Since there are several factors to consider while determining the amount of life insurance you need, it helps to have a concept or a technique that you can rely on for this estimation. And here’s where the Human Life Value approach (HLV) comes in.

What is the Human Life Value?

The Human Life Value or HLV is simply the present value of all the future income that you will be able to earn for yourself and your loved ones over the course of your life - until your retirement. It also includes the present value of your investments and liabilities.

This sums up the meaning of HLV. It essentially helps you determine the amount of financial loss that your family will have to endure in case something untoward happens to you. And based on this estimate, you can get a fair idea of the amount of coverage you require.

The HLV formula used to compute the amount of coverage needed can be income based or need based. But whichever method you choose, it is not possible to estimate these costs manually.

Fortunately, there’s a nifty online tool you can use for this purpose. And that is the Human Life Value calculator.

What is the Human Life Value calculator?

The HLV calculator is an online tool that can give you an estimate of the amount of life insurance you need to secure the future of your loved ones. It is free to use, and all you need to do is enter a few basic particulars about yourself. The HLV calculator then automatically computes the amount of life insurance coverage you need.

If you want to get a better idea of how this online tool works, you can check out the ABSLI Human Life Value Calculator. Here is a quick walkthrough to help you understand how this calculator works, and what you need to do to get a better idea of your HLV.

Step 1: Enter your personal details
You need to enter your current age and the age at which you wish to retire.

Step 2: Enter your financial details
Next, fill in the details of your monthly income and the existing life insurance cover you have.

Step 3: Enter your insurance details
Finally, you need to select whom your life insurance is supposed to protect. The options include your spouse, your children, your parents, and other loved ones. You can select as many of these as needed.

Step 4: Find out your HLV
Once you’ve entered all the details outlined above, the HLV calculator shows you the amount of additional cover you need.

How is the Human Life Value calculated?

Practically speaking, there are two ways to calculate the Human Life Value, namely the income method and the expense method. Let’s take a closer look at these two options.

  • The income method
    Also known as the income replacement method, this HLV formula takes into account the fact that in case of the policyholder’s demise, their life insurance coverage should be sufficient to replace the loss of income. The factors typically considered in this HLV formula include –
    • Your current income
    • Any expected increase in income
    • Your outstanding loans
    • The number of years left till you retire
  • The expense method
    The expense method or the need-based method uses a HLV formula that accounts for the expenses and requirements of the surviving members of the family, in case of the policyholder’s demise. Here, the following factors are used to calculate the HLV –
    • Your current expenses
    • Any expected increase in income
    • Your outstanding loans
    • The number of years left till you retire


A HLV calculator can help simplify one of the most important financial decisions you will make in life. Since the tool is easy to use and available free of charge, it is a good idea to make use of the HLV calculator before you decide on the amount of coverage you wish to buy. That way, you can make sure that you get the right amount of life insurance needed to secure your family’s future.

Read next: how much should you ideally invest every month?

Like insurance, investments are also pivotal to achieving your life goals. And today, you can even invest small sums on a monthly basis. But knowing how much you should invest each month is just as important as knowing the amount of life cover you need. Having trouble figuring out your monthly investment budget? We have a blog that can help you out.

Read it here


Term insurance offers a sizable coverage at affordable premiums. And a term plan like the ABSLI DigiShield Plan can help you meet the need for additional life insurance coverage without burdening your pocket too much.

With this policy, you get the advantage of choosing from 10 different plan options - including a level cover option, an increasing cover option, a whole life cover option and the Return of Premium (ROP) option.

Plus, you have the choice to buy this term insurance plan online too, right from the comfort of your home!

Know More

ABSLI DigiShield Plan (UIN 109N108V08) is a non-linked non-participating individual pure risk premium life insurance plan; upon Policyholder's selection of Plan Option 9 (Level Cover with Survival Benefit) and Plan Option 10 (Return of Premium [ROP]) this product shall be a non-linked non-participating individual life savings insurance plan.


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Term Products

ABSLI Life Shield Plan

A term insurance plan that offers you the flexibility of plan options suitable for your family's non- negotiable goals and ensure they need not compromise on their lifestyle. UIN: 109N109V06

  • Choice of 8 plan options
  • Cover your spouse under the same policy
  • Longer Life cover till age 85

ABSLI DigiShield Plan

PROTECTING multiple life needs with one plan is now possible. UIN 109N108V08

  • 10 Plan Options to suit your varied protection needs
  • Flexible death benefit pay-out options
  • Life insurance cover for 1 year or till age 100 yrs

ABSLI Saral Jeevan Bima

A simple plan to protect your family’s financial future (UIN 109N128V01)

  • Simple & affordable plan
  • Flexible premium paying terms
  • Enhance insurance cover with rider

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