Human Life Value Calculator
What is HLV (Human Life Value) calculator?
Human life value calculator helps you assess the life insurance cover one would need to secure the financial need of their dependents in case of their absence. It calculates the present value of the individual’s potential future earnings, taking into consideration factors such as net income, current age, retirement age and inflation rate.
Why is it important to know your HLV?
Knowing your HLV helps you understand the adequate insurance cover one would require to safeguard the family in case of their absence. If you have dependents who rely on your income, having a sufficient life insurance coverage can help provide financial protection for them.
How is HLV calculated?
HLV calculation is based on input parameters such as net annual income, current age, retirement age and inflation rate. The first stage in HLV calculation is to determine the number of years till retirement and to calculate potential future earning, factoring the inflation rate estimated by the user to arrive at an estimate of their economic value.
How accurate is HLV calculator?
The accuracy of HLV calculations heavily depends on assumptions made about future earnings, inflation rates, and other economic factors, which are subject to change based on the input value.