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Calculate the economic value of your life based on your financial contributions, future earning potential, and your family needs. This calculator helps you calculate your living value by entering some basic information.
Human Life Value (HLV) is a financial measure that estimates the economic loss a family would face in the event of the earner's death. It considers:
HLV = PV(Future Income) - PV(Future Expenses) + Additional Factors
Where:
For each future year until retirement:
Year N Income = Current Income × (1 + Growth Rate)^N
PV of Year N Income = Year N Income ÷ (1 + Discount Rate)^N
For each future year until retirement:
Year N Expenses = Current Expenses × (1 + Inflation Rate)^N
PV of Year N Expenses = Year N Expenses ÷ (1 + Discount Rate)^N
Insurance Gap = Max(0, HLV - Existing Insurance Coverage)
This represents the additional life insurance coverage needed to fully protect your family's financial future. For other calculation, visit the home page.