Human Life Value (HLV) Calculator
Estimate the term life insurance coverage required to replace future household income and protect your family from outstanding liabilities.
Calculate Your Human Life Value (HLV)
Enter your current income, age, and liabilities below to compute your educational family risk protection estimate.
Estimated Life Insurance Cover:
Review Suitable Term Plan Options
Speak with a Qualified Insurance Sales Person (ISP) at RakshaPoint IMF to review suitable term policy options for your coverage estimate.
Understanding the Science of Human Life Value (HLV)
Introduced by American economist Dr. Solomon S. Huebner, Human Life Value (HLV) is the foundational concept underpinning all modern life insurance underwriting. It treats an individual's future earning capacity as a revenue-generating asset that must be capitalized and protected against sudden loss.
Why Arbitrary "10x Income" Thumb Rules Fail
Many generic online guides recommend buying "10 times your annual income". However, this simplistic rule fails to account for real-life dynamics:
- A 28-year-old with a ₹12 Lakh salary has 32 years of future earnings (₹3.84+ Crores) and a ₹40 Lakh home loan. A 10x cover (₹1.2 Crores) leaves their family under-insured by more than ₹1.5 Crores!
- A 55-year-old with a ₹25 Lakh salary has only 5 years of working life left and zero debt liabilities. A 10x cover (₹2.5 Crores) may be unnecessarily expensive.
Common HLV Calculation Mistakes
- Ignoring Outstanding Debt Liabilities: Always add home loans, car loans, and business liabilities to your baseline cover.
- Confusing Employer Group Life Cover with Personal Term: Corporate group term life cover ceases the day you resign or change jobs. Never rely on office insurance for long-term HLV security!
- Delaying Cover Purchase: Term insurance premium increases by 5% to 8% for every year you age. Locking in your HLV at age 28 or 30 saves lakhs over a 30-year policy tenure.