HLV Calculator

There are multiple ways Human Life Value (HLV) is calculated. However, we calculate it scientifically. We define HLV as the sum total of the monetary values of all future needs an individual's spouse and dependents have of him, along with the values of all outstanding liabilities. In short, while the conventional way of calculating HLV is by accounting for the income, we choose to follow the expense and financial commitment route, which in our view is more objective and realistic. Use our calculator below to calculate a realistic HLV.


What is the family's Monthly Household Expenditure?

Please Enter Amount.

What is the family's Annual Lifestyle Expenditure?

Please Enter Amount.

What percent of the monthly household expense is on you?

Enter Upto 2 decimal Please Enter Percentage.

What percent of the annual lifestyle expense is on you?

Please Enter Percentage. Enter Upto 2 decimal.

What Inflation do you expect on household expenses?

Please Enter Percentage. Enter Upto 2 decimal.

What return do you expect on risk free securities?

Please Enter Percentage. Enter Upto 2 decimal.

How many financial dependents do you have?

Please select.

Select Dependent Type

Please select.

What is the Dependent's Current Age?

Please Enter Age. Enter only number.

How many more years will they be dependent on you?

Please Enter Years. Enter only number.

What is the percentage of monthly household expense spent on the dependent?

Please Enter Percentage. Enter Upto 2 decimal.

What is the percentage of annual lifestyle expense spent on the dependent?

Please Enter Percentage. Enter Upto 2 decimal.

What specific Goals does the dependent have? (If any)

Specify Goal Here (graduation / post graduation/ marriage / other)

Please Enter Percentage.

Specify Goal Here (graduation / post graduation/ marriage / other)

Please Enter Amount.

Specify Goal Here (graduation / post graduation/ marriage / other)

Please Enter Amount. Please Enter Amount.

Total Monthly Expense on Dependent

Rs.

Financial Value of your Life to your Dependent

Rs.

Select Dependent Type

Please select.

What is the Dependent's Current Age?

Please Enter Age. Enter only number.

How many more years will they be dependent on you?

Please Enter Years. Enter only number.

What is the percentage of monthly household expense spent on the dependent?

Please Enter Amount. Enter Upto 2 decimal.

What is the percentage of annual lifestyle expense spent on the dependent?

Please Enter Amount. Enter Upto 2 decimal.

What specific Goals does the dependent have? (If any)

Specify Goal Here (graduation / post graduation/ marriage / other)

Please Enter Amount.

Specify Goal Here (graduation / post graduation/ marriage / other)

Please Enter Amount.

Specify Goal Here (graduation / post graduation/ marriage / other)

Please Enter Amount.

Total Monthly Expense on Dependent

Rs.

Financial Value of your Life to your Dependent

Rs.

Select Dependent Type

Please select.

What is the Dependent's Current Age?

Please Enter Age. Enter only number.

How many more years will they be dependent on you?

Please Enter Years. Enter only number.

What is the percentage of monthly household expense spent on the dependent?

Please Enter Amount. Enter Upto 2 decimal.

What is the percentage of annual lifestyle expense spent on the dependent?

Please Enter Amount. Enter Upto 2 decimal.

What specific Goals does the dependent have? (If any)

Specify Goal Here (graduation / post graduation/ marriage / other)

Please Enter Amount.

Specify Goal Here (graduation / post graduation/ marriage / other)

Please Enter Amount.

Specify Goal Here (graduation / post graduation/ marriage / other)

Please Enter Amount.

Total Monthly Expense on Dependent

Rs.

Financial Value of your Life to your Dependent

Rs.

Outstanding Loans

Please Enter Amount.

Other Liabilities

Please Enter Amount.

Contingency Funds that will be required by the family

Please Enter Amount.

Current Life Insurance that the client already has

Please Enter Amount.

Assets that the family will be able to financially use in case of clients demise

Please Enter Amount.

TOTAL INSURANCE REQUIREMENT

Rs.

What is Human Life Value (HLV)?

HLV of an earning member in the family is the amount that the family would require to retain the same standard of living in the absence of the earning member. This would be the optimum sum to indemnify risk to life. There are different ways to calculate the amount of insurance you require -but a comprehensive and scientific method is PersonalFN's HLV method.

 

PersonalFN’s HLV takes into account:

  • Life expectancy of your spouse
  • Number of children
  • How old the children are, and how many years they’ll be dependent on you
  • The financial goals you’re addressing for the dependents
  • Your monthly household expenses (excluding your personal expenses)
  • Lifestyle expenses
  • Contingency reserve (if any)
  • Assets
  • Current insurance (if any)
  • Outstanding loans
  • Cost of inflation

…amongst a host of others.

How to choose the right insurance product?

Once the HLV has been calculated, the next step is to choose the appropriate insurance product to cover your needs. There are a number of insurance products available in the market today - from term plans to ULIPs to endowment plans and so on. It is important to assess the available products and select the right insurance for your needs. At PersonalFN - we recommend opting for pure term insurance plans.

 

Also, it is seen that traditional policies such as endowment policies and money back policies provide very poor returns, giving a yield of less than 5% per annum over the entire term. This does not even match inflation and hence it is not recommended to take these products. Products like ULIPs and the like have hidden charges and high commissions, which lead to an inefficient use of your funds that could otherwise have been invested. Until these products become transparent, it is not advisable to opt for them.

What are Term Insurance Plans?

A term policy is a simple pure life insurance that provides a sum assured in case of the policy holder's unfortunate demise. Most people are not in favour of a term policy, as there is only a death benefit. Also, it is believed that since the insurance is available only for a particular term after which there is no cover, it is not a comprehensive policy. But the reality is that term policies are the purest form of insurance available today. They are very cheap compared to other insurance policies. The insurance cover you opt for should meet the HLV that you calculate.


 

Disclaimer : PersonalFN is not providing any investment advice through this service PersonalFN does not warrant that this service is complete, accurate, reliable, current, reliable, suitable, free from any virus, disruption or interruption and expressly disclaims all warranties and conditions of any kind, whether express or implied. The results may be based on certain assumptions. terms of Usebefore using this service.