Aditya Birla Sun Life Insurance Company Limited

Human Life Value Calculator

Ever wondered how much your life is worth financially, not in emotional terms, but in terms of the income and value you bring to your family? That’s exactly what HLV stands for: Human Life Value.

Age limit: 18+ Yr. age required for cover and premium

Age will define the eligibility cover and premium

Life cover can be upto 2 Cr.

Your life cover will be

0

Disclaimer : The above calculator is provided for illustrative and representational purposes only. The results generated should not be relied upon for making financial, legal, or any other decisions. Users are strongly advised to consult with qualified professionals before making any decisions based on the information provided.

What is Human Life Value (HLV)?

HLV in insurance is a method used to estimate the present value of your future earnings, expenses, liabilities, and investments. It gives a realistic picture of how much financial support your loved ones would need if you were no longer around to provide for them.

To put it simply, your Human Life Value is the total income you are expected to earn in your lifetime, minus your personal expenses and taxes. The remaining amount reflects your economic contribution to your family. This value becomes crucial when determining the ideal life insurance cover, one that doesn't just tick a box but truly protects your family’s future.

What is Human Life Value (HLV) Calculator?

A Human Life Value calculator, or simply HLV calculator, is a smart online tool designed to help you figure out the amount of life insurance you actually need.

Instead of guessing or choosing a random number, a free HLV calculator uses real inputs like your age, annual income, expected working years, personal expenses, liabilities, and inflation to compute the right life cover based on the human life value formula.

Whether you're a salaried employee, a business owner, or a homemaker contributing to unpaid household work, your life has financial worth. And the HLV calculator helps quantify that worth, so your family isn’t left financially vulnerable in your absence.

Still wondering how to calculate human life value? This tool does it for you, accurately and effortlessly, so you can make informed decisions about your insurance coverage.

Benefits of Using the HLV Calculator

Choosing the right life insurance cover can feel like shooting in the dark, too little, and your family may struggle; too much, and you might overspend on premiums. That’s where a human life value calculator can be a game changer.

Here are the key benefits of using a free HLV calculator:

  • Personalised insurance cover: Instead of picking a random figure, the calculator suggests an ideal life cover based on your income, lifestyle, and financial responsibilities.

  • Clarity on future needs: It considers your family’s long-term needs, including education, debt repayment, daily expenses, and future goals.

  • No complex maths: You don’t need to memorise the human life value formula, the calculator does all the work for you.

  • Quick and easy: It takes just a few minutes to input basic details and get an accurate estimate.

  • Better financial planning: Knowing your HLV in insurance terms helps you make smarter decisions when choosing a term plan or upgrading an existing one.

Think of it as your personal financial mirror, it reflects how much protection your family needs to stay secure, even if life takes an unexpected turn.

How Does Human Life Value Calculator Work?

If you’re wondering how to calculate human life value, here’s a quick breakdown of how the HLV calculator works:

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You enter your details:

This includes your age, current income, expected retirement age, ongoing expenses, existing liabilities, and inflation rate

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The calculator applies the HLV formula:

It estimates the present value of your future income after deducting personal expenses and taxes, adjusted for inflation.

In short: HLV = (Annual Income – Personal Expenses – Taxes) × Remaining Working Years

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You get a personalised recommendation:

Based on the inputs, the calculator gives you the insurance cover you should ideally have

It’s that simple.

Instead of using guesswork, this tool uses a structured, financial approach to show you your HLV meaning in insurance terms, helping you safeguard your family’s future without over-insuring or under-insuring.

Steps to Calculate Human Life Value

If you're curious about the steps behind the HLV calculator, here’s a simple breakdown to understand how to calculate human life value manually:

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Step 1: Know your annual income
This includes your salary, bonuses, business profits, or any other source of income.

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Step 2: Subtract personal expenses and taxes
The amount you spend on yourself and pay as taxes should be deducted. What remains is the income your family depends on.

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Step 3: Estimate your working years left
Subtract your current age from the age you plan to retire. For example, if you’re 35 and plan to retire at 60, you have 25 working years.

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Step 4: Apply the Human Life Value formula
Now, multiply your family-dependent income by the number of working years left. Adjust this figure for inflation and expected returns to get the present value.

HLV = (Annual Family-Dependent Income) × (Remaining Working Years) (adjusted for inflation and time value of money)

Of course, a free HLV calculator does this for you in seconds, without any confusion or number-crunching!

Why is HLV Calculation Important?

Your income supports more than just your present lifestyle, it shapes your family’s future. That’s why understanding your HLV in insurance matters.

Here’s why HLV calculation is important:

  • Protects your family’s financial future: Knowing your human life value ensures that your life cover matches your family’s actual needs, not a random figure.

  • Avoids underinsurance: A policy that’s too small might leave your loved ones struggling with debts, education costs, or basic living expenses.

  • Guides smarter decisions: When you understand the HLV meaning in insurance, you’re more equipped to choose the right term plan or investment-linked insurance.

  • Aligns with life goals: As your income and responsibilities grow, your HLV can be recalculated to reflect changing needs.

In short, HLV is not just a number. It’s your promise of protection, backed by logic, care, and foresight.

HLV Calculator FAQs

You should recalculate your Human Life Value (HLV) every few years or when there’s a significant change in your financial life, like a new job, salary hike, marriage, a new loan, or the birth of a child. Your responsibilities evolve, and so should your insurance cover. A free HLV calculator can help you update your value in just a few minutes.

Calculating your HLV helps you understand the true value of the income you bring to your family over your working years. It ensures your life insurance coverage is aligned with your family’s future needs. Without this, you risk being underinsured, which can leave your loved ones financially vulnerable. That’s why tools like the HLV calculator are essential for smart insurance planning.

Yes, absolutely. Your human life value is unique to you. It depends on several personal factors, like your age, income, lifestyle, family responsibilities, and liabilities. That’s why a customised HLV calculator gives far more accurate results than using a general rule of thumb.

Several lifestyle changes can impact your HLV in insurance terms, such as:

  • A change in career or income level
  • Starting or expanding a family
  • Taking on new financial responsibilities (like a home loan)
  • Health-related changes or early retirement plans

Each of these can shift your human life value, and it's a good idea to revisit your coverage using a human life value calculator.

The concept of Human Life Value was popularised by Dr. Solomon S. Huebner, often referred to as the "father of insurance education." He introduced HLV to help individuals understand the economic value of human life and use it as a foundation for determining appropriate life insurance coverage.

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