1. What is your Human Life Value ?
Beyond all doubt, your life is invaluable. Yet, there is a certain worth that can be attributed to the financial support you offer to your parents, spouse or children. This worth is referred to as Human Life Value (HLV). In the future, if your family does not have the protective blanket of your presence, they will no longer be able to enjoy the benefits of the income you earned. Put simply, Human Life Value is the present value of your future earning.
2. Why should one calculate Human Life Value ?
Human Life Value should be calculated so one can accordingly invest in insurance plans that provide your dependants with adequate finances and hence security even in your absence.
3. How do you determine your Human Life Value?
Your Human Life Value is determined by 3 factors – your age, current and future expenses, current and future income. As a thumb rule, if you are 30 years of age, you should insure yourself for an amount approximately 8 times your annual income. At 35, your investment should be close to 6 times your income. Of course, the exact amount of your investment should be determined by the number of people who depend on you, your existing investments and your life stage. For example, if you are 30 years of age and have two children and parents to provide for, the amount you invest should be reflective of your requirements. We have worked our your Human Life Value to give you a closer look at how well inured your are.
|Your HLV v/s Present Cover
|Your Age (in years)
|HLV Multiple ( Corresponding to your age)
|Your Ideal Insurance cover
||HLV Multiple (12)* Current Annual Income