What is Human Life Value or HLV

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Anupama Nair



What is Human Life Value or HLV? It is a number that tells the present value of future income expenses, liabilities and investments. The HLV number is taken usually to understand how much money would be required to secure the lives of your dependents with term insurance, in case you are no longer around.

Dr. Solomon S. Huebner had discovered the concept of human life value. Thus, he is credited with making HLV the standard method of calculating insurance value and need.

HLV = Retirement Age—Current age X annual CTC.

There are 7 points that are taken into account to assess your HLV. These are:


Your age
Your gender
Your occupation
Your target retirement age
Your annual income
Your employment benefits
Your financial information on spouse and children

HLV puts a number to an important question — what is the price of your life. In life insurance, it is important to measure your economic worth. This worth can be expressed in the form of human life value. Thus, HLV is the rupee value of your economic worth in terms of what you create for the people who depend on you. So, if your life is cut short then an amount equivalent to the HLV should be available so that the people dependent on you can lead their life properly.

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