Human Life Value (HLV) Calculator

What Are the Methods to Calculate HLV?

There are two methods of calculating Human Life Value. These are as follows,

  • Income Replacement Method: In this method, individuals have to opt for Life Insurance that can thoroughly replace the amount needed to support a family.
  • Need-Based Method: This method calculates the amount required to cover the needs in the event of the death of an earning member.

The below-mentioned table shows the calculation method of Human Life Value with an example,

Suppose Mr. Kumar (aged 40 years) receives a salary of ₹ 5 lakhs. After deducting his personal income of ₹ 1.3 lakh per annum, the remaining amount of ₹ 3.7 lakh stays with his family, which they spend for daily expenses. Here, the surplus value of ₹ 3.7 lakh is Mr. Kumar’s economic value. If Mr. Kumar invests this money for the working span, it will transform into his Human Life Value.

The calculation is as follows:



Gross Total Income

₹ 5 lakh

Personal Expenses

₹ 1 lakh

Insurance Premium

₹ 15,000

Tax Payable

₹ 10,000

Retirement Age

60 years

Surplus Income of the Family

₹ 3.7 lakh

Anticipated Rate of Return


Working Span

20 years

Human Life Value

₹ 3.9 lakh

Now that individuals know the calculation process of HLV, let’s understand the importance of HLV and the factors affecting it.

How to Use the Human Life Value Calculator?

Frequently Asked Questions