Human Life Value Calculator

Measure your economic worth to protect your family

Though you can never put a value on human life, the economic value of human life may be measured through various financial factors. It can be difficult to make an accurate estimation by looking at income alone and having a calculator can take out any guesswork involved. This can be helpful to understand the financial loss your family may incur if anything were to happen to you, that way you can factor in how much life insurance protection you may need for your loved ones.
Protect your family from financial loss
By estimating the economic value of your life, you can identify the level of life insurance needed to protect your loved ones or dependents from financial difficulty if anything happens to you. The human life value approach is a concept universally adopted by insurance companies and underwriters to ensure a family’s standard of living does not get affected if the primary earner for the family dies or becomes disabled.
Using the human life value calculator
The human life value calculator is very easy to use and is designed to help you estimate the financial value of your life so that you can obtain the right level of life insurance.
The calculator only requires some basic details about yourself and information about your annual income and investment returns. Once added to the human life value calculator, you can view your human life value based on your income growth and see adjustments for inflation as well.
Using the human life value calculator
The human life value calculator is very easy to use and is designed to help you estimate the financial value of your life so that you can obtain the right level of life insurance.
The calculator only requires some basic details about yourself and information about your annual income and investment returns. Once added to the human life value calculator, you can view your human life value based on your income growth and see adjustments for inflation as well.
How accurate is the human life value calculator
The human life value approach is only suitable to determine life insurance needs for income producing family members and thus differs significantly from the needs approach. Unlike other calculators, this HLV calculator adjusts for income growth and inflation so you can accurately identify an income replacement value if something should happen to you.
However, the human life value approach is still subject to limitation due to the unpredictable nature of life and is not as widely used as the needs approach. Any unexpected changes to income can significantly impact an individual’s financial situation, making it difficult to estimate future earnings correctly.
How to use the human life value calculator – step by step
The human life value calculator is comprised of two parts: an information intake and integrated results. It requires certain information to produce accurate results. Let us review this together.
1. On the first line of the calculator you may add your years until retirement. This is the number of years you expect to continue working and earning for your family.
2. You should add your current annual income to the second line of the calculator, not factoring in any income from your spouse.
3. If you have any investments, add your rate of return to the third line of the calculator.
4. Finally, include a percentage of expected annual inflation and a percentage of expected annual income growth on the fourth and fifth lines of the calculator, respectively.
Once this information has been added to the calculator, you may proceed to view your HLV results.
Your human life value results
Human Life Value Calculator
Directly below the information intake you may view an integrated report of your human life value. Here you may see your HLV adjusted for your income growth in green, along side your HLV further adjusted for inflation in blue. This may be important in determining your family’s future financial security and potential insurance needs in many years times, depending on when it is that you plan to retire. You want to make sure your family will always be taken care of, not just a year or two after your passing.
Please remember to save the human life value calculator to your bookmarks so you can access this great tool as your finances change and use the share feature to provide this tool to any friends or family that may be looking into life insurance benefits.