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What Is Human Life Value (HLV) Calculator & How To Calculate It?

February 9, 2025

6 mins

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Disclaimer : ABSLI Nishchit Aayush Plan (UIN No 109N137V12) is a non-linked non-participating individual savings life insurance plan.
^ Provided 0 year deferment & Annually in Advance payout frequency is chosen at the time of inception of the policy. Annually in Advance payout frequency is only available in "Annual" premium payment mode. ^*Male- 25 yrs invests in ABSLI Nishchit Aayush Plan with Level Income + Lumpsum Benefit. He chooses premium payment term 10 yrs , policy term 40 years, benefit option -Long Term Income, Sum Assured 7 times of Annualized Premium and Deferment Period 0 years. Annualized Premium is ₹1,00,000 (Exclusive of GST.). Annual Income of ₹ 32,750 (32,750*40=  13,10,000) + Maturity Benefit (₹20,00,000)= ₹ 33,10,000 ADV/3/24-25/3076.

Table of Contents

Human Life Value (HLV) calculator is a tool to help figure out the value of your life for insurance purposes. When considering life insurance, you'll need to decide on the type of plan, which insurance company to go with, how long you want coverage, and any extra add-ons you might want. But one crucial aspect to consider is how much coverage you need. This determines the financial protection your loved ones receive in case of your absence.
So, let's explore how to calculate your Human Life Value and make informed decisions about your life insurance needs.

What Is The Human Life Value?

Human Life Value (HLV) helps us understand how much a person's life is worth financially. It is a way to see the financial impact on your loved ones in the event of your sudden and untimely death, wherein you could not support them anymore. Essentially, it is the total amount of money needed to keep your family financially safe if you are not there to earn for them. HLV takes into account your future earnings and any financial help you provide to your family. In essence, Human Life Value is a metric to help plan for your family's financial stability in case of an unexpected event.

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.

Steps To Calculate Human Life Value (HLV)

Calculating Human Life Value (HLV) involves a couple of common methods –

Need-Based Method
This method looks at what your family would need if you were no longer around. It considers factors like your current income, lifestyle, dependents, etc., to figure out how much coverage your family would require.
Income Replacement Method
This method focuses on replacing your current income to support your family. It calculates the total amount needed to fill the gap left by your absence. This involves considering the present value of all your future earnings to determine your HLV.

You can easily calculate your HLV using our Human Life Value calculator –

Step 1
Start by opening the HLV calculator on our website. The first question will ask about your current age and the age you plan to retire.
Step 2
Next, provide your financial details. Enter your monthly income and any existing life insurance coverage you have.
Step 3
Tell us about your financial dependents. Choose from options like children, spouse, parents, or other loved ones who you want to financially protect with your life insurance policy.
Step 4
Finally, just click the ‘Next’ button. The website will swiftly calculate your HLV and display the result instantly.

Why Do You Need To Calculate Human Life Value (HLV)?

Understanding Human Life Value (HLV) is crucial, especially if you are the sole provider for your family. It helps figure out the right amount of insurance coverage to support the financial needs of those who rely on your income. By putting a number on your life’s worth in this context, it helps with planning and ensuring the financial security of your dependents.
Knowing the HLV helps you make smart choices about your required insurance plan. It helps decide how much and what kind of coverage is needed to safeguard dependents from financial hardships if something unfortunate happens to you, like death or disability.

Conclusion

A HLV calculator can help simplify one of the most important financial decisions you make in life. As 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.
This ensure that you are sure that you are aware of the exact right amount of life insurance needed to secure your family’s future.

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FAQ HLV Calculator

How much life insurance do you need?

Figuring out the right amount of life insurance depends on different things like the income you earn, outstanding loans/liabilities, your lifestyle choices and other financial commitments. One way people calculate this is by looking at their Human Life Value (HLV). Your HLV is all the money your family could expect you to earn to support them in the future. By figuring out your HLV, you can better understand how much insurance coverage you need to make sure your family will be financially prepared if something happens to you.

How vital is it to plan for the well-being of your family in the case of any unforeseen event?

Planning for your family's future is crucial, especially in case something unexpected happens to you. Life can be uncertain, and it is vital to make sure your family is financially secure even if you are not there for them anymore. This is why it is required to have adequate life insurance coverage in place. It helps your family pay for important things like any liabilities, education, and everyday needs. This way, they will not have to worry about money and can keep living comfortably even during tough times.

How can the right amount of life insurance give you peace of mind?

Life insurance is crucial for peace of mind because it ensures your family's financial security. If you pass away during the policy duration, the insurance payout acts as a safety cushion for your family. This money helps your loved ones maintain their lifestyle and pursue their dreams without any financial stress. With the right coverage, you can be worry-free that your family can handle their expenses and life goals, even if you are not around to support them.

How can you assess your Human Life Value?

To figure out your Human Life Value (HLV), you can use our handy HLV calculator. Just share some basic information like your age, expected retirement age, income, any financial dependents you have, etc. Then, you will quickly get the results you are looking for.

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^*LI Age 21, Male, Salaried, Non Smoker, Option 1: Level Cover, PPT: Regular Pay, SA:  ₹ 1 Cr., PT: 10 years, Premium paying term: 10 years, Death Benefit Payout as Lumpsum. Annual Premium: ₹ 6900/- ( which is ₹ 575/month), 1 Cr SA is paid and the policy terminates. 
ABSLI Super Term Plan - This Policy is underwritten by Aditya Birla Sun Life Insurance Company Limited (ABSLI). This is a non-linked non-participating individual pure risk premium life insurance plan. UIN: 109N153V02