Human Life Value Calculator
Your HLV is the present value of your future earnings after self-consumption. It's the most defensible yardstick for life insurance cover.
What it means
Human Life Value (HLV) is an economic approach to sizing life insurance. It discounts your future net earnings (after your own consumption) to today's value. If your HLV is ₹3Cr, a ₹3Cr term policy restores your family's economic trajectory if something happens to you.
Summed over each year until retirement. d = discount rate.
Worked example
At ₹12L income, 30% self-use, 6% growth, 7% discount, age 32 retiring at 60 → HLV ≈ ₹2.2Cr in today's money.
Frequently asked questions
Why not just use 15× income?
15× is a shortcut. It ignores your remaining working years, income trajectory, and existing assets. HLV is the rigorous version insurance underwriters themselves use.
What discount rate should I use?
Use the long-term risk-free rate - 10-year G-Sec yield, currently ~7%. Higher rates give lower HLV (more conservative); lower rates give higher HLV.
Should HLV include non-working spouse?
Yes. Use replacement cost of their household work (childcare, cooking, logistics) - typically ₹40,000–80,000/month in metros. This is their HLV.
How often should I recompute HLV?
Every 3 years, or after any major life event - marriage, child, salary jump, or home purchase. Top up your term cover if HLV has grown.