Part 1 —
HUMAN LIFE VALUE (HLV)
“What is your TRUE WORTH?”
🚗 You insure your car.
🏠 You insure your house.
But have you ever calculated the economic value of your own life to your family?
Your income supports their lifestyle, dreams and future.
Part 2 — What is HLV?
❓ What is Human Life Value?
HLV = The financial value of your future earning capacity and the fund your family would need if your income suddenly stopped.
It helps protect:
👨👩👧 Family Lifestyle
🎓 Children’s Education
🏠 Loans & Liabilities
💰 Future Financial Goals
🌅 Retirement Security
Emotional loss cannot be replaced.
Financial loss can be planned for.
Part 3 — Method 1
🧮 Income Replacement Method
A simple starting point:
Life Cover ≈ 15–20 × Annual Income
Example:
Annual Income = ₹25 Lakh
₹25 Lakh × 20 = ₹5 Crore
👉 This gives your family a financial corpus that can help replace your income.
But remember: This is only a starting point—not a complete HLV calculation.
Part 4 — Method 2
📋 Needs-Based Approach
Calculate your family's actual future requirements:
Future Expenses
Children’s Education & Marriage
Loans & Liabilities
Other Financial Goals
− Existing Investments / Assets
= Required Life Insurance Cover
🎯 This approach is more personalised because it is based on your family's actual financial needs.
Part 5 — Method 3
📈 Capitalization of Income
Your age + remaining working years + annual income can also be considered.
Example:
Age: 38
Retirement: 60
Working Years Left: 22
Annual Income: ₹15 Lakh
₹15 Lakh × 22 = ₹3.3 Crore
👉 This represents the basic future earning value before considering inflation, investments, liabilities and other needs.
Part 6 — Under-Insurance
🚨 Are You Under-Insured?
A ₹5 lakh or ₹10 lakh policy may sound reassuring…
But ask yourself:
“How long can my family actually survive on this amount?”
Inflation can quickly reduce the purchasing power of today's money.
❌ Insurance should not be selected only because it fits your budget.
✅ Insurance should be evaluated against your HLV and your family's financial responsibilities.
Part 7 — Doctors & Business Owners
🎯 HLV Is Not the Same for Everyone
For doctors, professionals and business owners, HLV calculation may need additional attention:
🏥 Clinic / Hospital investment
🏢 Business liabilities
🏠 Property & home loans
💰 Capital blocked in assets
👨👩👧 Lifestyle maintenance
🎓 Children’s future goals
Higher income + higher responsibilities = Higher financial protection requirement.
> Insurance planning should be based on your complete financial picture, not just your annual premium budget.
Part 8 —
📝 CHECK YOUR HLV TODAY
Ask yourself:
☑️ What is my annual income?
☑️ How much debt do I have?
☑️ What will my children need for their future?
☑️ What are my family's monthly expenses?
☑️ How much existing investment do I have?
☑️ Is my current insurance enough?
“You can know the value of your car because it has a bill.
But your value to your family is priceless.”
Calculate your HLV.
Protect your family's future.
Rajendra Solanki
IRDA Registered Insurance Advisor | MDRT USA Member
📞 9099100131
MAHEK Insurance & Investment
