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