Human Life Value Calculator
Your human life value is what your future earnings, net of what you spend on yourself, are worth today. It expresses in one number what your family would lose.
Results
Human life value
₹1,84,83,537
- Additional cover implied
- ₹1,34,83,537
- Yearly contribution to your family
- ₹8,40,000
- Working years left
- 28
- Value as a multiple of income
- 15.4 ×
Over the 28 years until you retire, you are expected to contribute about ₹8,40,000 a year to your family (rising 6%), which has a present value of ₹1,84,83,537. After existing cover of ₹50,00,000, ₹1,34,83,537 more would replace it.
Show the calculation steps
- Income kept by your family = ₹12,00,000 × (1 − 30% personal expenses) = ₹8,40,000 a year.
- That amount grows 6% a year for 28 years. Discounted at 8%, the present value is ₹1,84,83,537.
- Additional cover = human life value − existing cover = ₹1,84,83,537 − ₹50,00,000 = ₹1,34,83,537.
- Human life value is the present value of your future earnings that your family depends on. A higher discount rate lowers it. Treat it as a ceiling rather than a target, since it ignores assets you already have.
How it is computed
The calculator takes the part of your income that supports your family, grows it each year, and discounts it back to today. A higher discount rate or fewer working years makes the value smaller.
Use it as a ceiling
The human life value ignores assets you already have and inflation-linked expenses, so it is usually higher than what your family needs. Treat it as an upper estimate and compare with the needs-based calculators.
Formula
Yearly contribution = Income × (1 − personal expense %)
HLV = Σ Contribution × ((1 + growth) ÷ (1 + discount))^t for each working year t
Where:
- Growth
- = Yearly increase in income
- Discount
- = Rate used to compute present value
Example calculation
Age 32, ₹12 lakh income, 30% personal expenses
Inputs
- Your Age
- 32 years
- Retirement Age
- 60 years
- Annual Income
- ₹12,00,000
- Your Personal Expenses
- 30 % of income
- Yearly Income Growth
- 6 %
- Discount Rate
- 8 %
- Existing Life Cover
- ₹50,00,000
Result
- Human life value
- ₹1,84,83,537
- Additional cover implied
- ₹1,34,83,537
- Yearly contribution to your family
- ₹8,40,000
- Working years left
- 28
- Value as a multiple of income
- 15.4 ×
Step-by-step
- Income kept by your family = ₹12,00,000 × (1 − 30% personal expenses) = ₹8,40,000 a year.
- That amount grows 6% a year for 28 years. Discounted at 8%, the present value is ₹1,84,83,537.
- Additional cover = human life value − existing cover = ₹1,84,83,537 − ₹50,00,000 = ₹1,34,83,537.
Important notes
- This is a planning estimate, not a recommendation to buy a specific policy. Insurers assess income, age and health, and you should compare policies and read the terms.
Disclaimer: This calculator provides estimates for informational purposes and should not be considered financial advice. Actual figures from lenders, banks and investment products can differ because of fees, taxes, rounding rules and changing rates. Consult a qualified professional before making financial decisions.
Frequently asked questions
What is human life value?
The present value of the income you are expected to earn and share with your family until retirement.
How is it different from term insurance needs?
It values future income, while a needs-based calculation looks at what your family would actually need.
What discount rate should I use?
Something close to the long-term return you could expect on safe investments.
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