Calculate Your Life Insurance Need
✓ 2 Methods - Income & expense based
✓ PV Calculation - Inflation & returns adjusted
✓ Risk Factor - Occupation-based multiplier
Working years left: 30 years
Life expectancy: 70 years
Risk multiplier: 1x
Family income: ₹7.00 L/year
Your Human Life Value
₹3.68 Cr
Recommended Life Cover
₹4.24 Cr
(With 20% safety buffer)
Working years left: 30 years
Your HLV
₹3.68 Cr
Existing Cover
₹15.00 L
Coverage Gap
₹3.53 Cr
Recommended
₹4.24 Cr
💰 HLV Breakdown (Income Replacement Method)
| Annual Income | ₹10.00 L |
| Personal Expenses (30%) | -₹3.00 L |
| Family-Dependent Income | ₹7.00 L |
| Working Years × PV Factor | 30 years |
| Total Present Value | ₹3.68 Cr |
| Occupation Risk (1x) | Applied |
| Gender Factor (1.0x) | Applied |
| Total Human Life Value | ₹3.68 Cr |
| Existing Savings | -₹5.00 L |
| Existing Insurance | -₹10.00 L |
| Coverage Gap (Need to Buy) | ₹3.53 Cr |
| Recommended Cover (+20% buffer) | ₹4.24 Cr |
💡 Calculation Details:
Human Life Value (HLV) is the present economic value of your future income that your family depends on. It helps determine how much life insurance coverage you need to financially protect your family in case of your untimely demise. HLV considers your age, income, expenses, inflation, and future financial goals.
Our calculator uses two methods: Income Replacement Method (calculates present value of your future earnings after personal expenses, adjusted for annual increments, inflation, and expected returns) and Expense/Needs Method (calculates total family needs including living expenses for remaining working years, children's education and marriage costs, outstanding loans, and future goals). Both methods include occupation risk multiplier for high-risk professions.
Best For:
Salaried individuals with stable income
✓Simple & quick calculation
✓Accounts for income growth
✓Adjusts for personal expenses
✓Present value calculated
💰 Formula: (Annual Income - Personal Expenses) × PV Factor × Working Years
Best For:
Families with specific goals & loans
✓More comprehensive coverage
✓Includes specific goals
✓Accounts for all liabilities
✓Higher accuracy
💰 Formula: Living Expenses + Education + Marriage + Loans
💡 Recommendation: Use Income Method for quick estimate. Use Expense Method for accurate, goal-based planning. Expense method typically gives 20-30% higher coverage.
| Parameter | Value |
|---|---|
| Annual Income | ₹10,00,000 |
| Personal Expenses (30%) | -₹3,00,000 |
| Family-Dependent Income | ₹7,00,000 |
| Working Years (Age 30-60) | 30 years |
| Annual Increment | 8% per year |
| Inflation Rate | 6% |
| Expected Return | 10% |
| Human Life Value | ₹1.2 Cr |
| Need | Amount |
|---|---|
| Living Expenses (₹50K/month × 30 years PV) | ₹90,00,000 |
| Child Education (Engineering/MBA) | +₹20,00,000 |
| Child Marriage | +₹10,00,000 |
| Outstanding Home Loan | +₹30,00,000 |
| Human Life Value | ₹1.5 Cr |
💰 Result: Income Method = ₹1.2 Cr, Expense Method = ₹1.5 Cr. Recommended coverage: ₹1.8 Cr (₹1.5 Cr + 20% buffer). Minus existing savings/insurance to get net requirement.
Human Life Value (HLV) is the present economic value of your future income that your family depends on. It's the scientific way to determine your life insurance requirement.
Why it matters:
💚 Example: Age 30, ₹10L income, 30 working years. HLV = ₹1.2-1.5 Cr. Most people only have ₹20-30L cover = huge gap!
Coverage needed = Your HLV - (Existing Savings + Existing Insurance) + 20% buffer
Rule of Thumb (Quick Estimate):
Annual Income × 10-15 years = ₹10L income → ₹1-1.5 Cr cover
HLV Method (Accurate):
Present value of future income/needs = Usually 15-20% higher than rule of thumb
Real Example:
Age 30, ₹12L income, 2 kids, ₹30L loan → HLV = ₹1.8 Cr. Existing: ₹20L + ₹10L savings. Gap = ₹1.5 Cr. Buy: ₹1.8 Cr (with buffer)
Income Replacement Formula:
HLV = Σ [(Annual Income - Personal Expenses) × (1 + Increment)^n] / (1 + Return - Inflation)^n
Where n = each year till retirement
Expense/Needs Formula:
HLV = Living Expenses (PV) + Education + Marriage + Outstanding Loans
PV = Present Value adjusted for inflation & returns
Occupation Risk Adjustment:
Final HLV = Base HLV × Risk Multiplier (1.0x Low, 1.2x Medium, 1.5x High Risk)
Result: Conservative estimate
Result: More accurate & higher
💜 Best Practice: Calculate both! Take higher value. Expense method typically 20-30% higher. Better to be over-insured than leave family struggling.
Inflation and expected returns are critical in HLV calculation as they determine the present value of future income/needs:
| Scenario | Inflation | Return | HLV Impact |
|---|---|---|---|
| Conservative | 4% | 6% | Lower HLV |
| Moderate (Realistic) | 6% | 10% | Medium HLV |
| Aggressive | 8% | 12% | Higher HLV |
⚠️ Why it matters:
Discount Rate = Return - Inflation. Lower discount = Higher PV = Higher HLV. Example: 10% return - 6% inflation = 4% discount. ₹1L after 10 years = ₹67,556 today.
💙 Recommendation:
Use moderate (6% inflation, 10% return) for realistic HLV. India's historical inflation = 5-7%, equity returns = 12-15%, debt returns = 7-9%.
Our Human Life Value (HLV) Calculator is the most comprehensive life insurance requirement calculator in India that helps you determine the exact life insurance coverage needed to protect your family's financial future using scientific income replacement method and expense/needs method with present value calculations adjusted for inflation, expected returns, and occupation risk factors.
The calculator features two calculation methods: Income Replacement Method (calculates present value of future income stream by taking annual income minus personal expenses, adjusting for annual increment rate 0-15%, multiplying by working years remaining from current age to retirement age, discounting by expected return minus inflation rate to get present value, applying occupation risk multiplier 1.0x for low-risk IT admin teaching, 1.2x for medium-risk sales healthcare engineering, 1.5x for high-risk construction mining police professions) and Expense/Needs Method (calculates comprehensive family needs by adding living expenses present value calculated as monthly family expense × 12 × working years adjusted for inflation and discounted by expected returns, children's education cost for engineering MBA medical professional courses, children's marriage expenses, outstanding home loan car loan personal loan liabilities, and other future financial goals, all adjusted by occupation risk multiplier for final HLV).
Advanced features include flexible financial assumptions: inflation rate options (conservative 4% for stable economy, moderate 6% for realistic India inflation matching historical 5-7% average, aggressive 8% for high inflation scenario), expected return options (conservative 6% for debt-heavy portfolio, moderate 10% for balanced equity-debt 60-40 portfolio matching long-term market returns, aggressive 12% for equity-heavy portfolio), annual income increment slider 0-15% (typical IT 8-12%, government 3-5%, business variable), personal expenses percentage 10-50% (bachelor 10-20%, married 20-30%, family 30-40%, dependents 40-50%), and complete present value calculation using compounding and discounting formulas for accurate time value of money adjustment across 20-40 working years horizon.
Perfect for all income earners whether you're salaried employee planning life insurance, business owner with irregular income, young professional starting career, family with children planning education marriage, homeowner with outstanding mortgage, sole breadwinner protecting dependents, or financial planner advising clients on insurance needs. The calculator provides detailed breakdown showing annual income family-dependent portion after personal expenses, working years calculation from current age 18-60 to retirement age 50-70, present value of future income stream year-by-year with increment and discount factors, occupation risk adjustment multiplier, existing coverage deduction from savings and insurance, coverage gap calculation showing net insurance needed, and recommended coverage with 20% safety buffer for comprehensive family protection. Use this tool for determining exact term insurance amount, comparing different insurance quotes, understanding impact of inflation on coverage, planning comprehensive financial protection, evaluating existing insurance adequacy, or making informed life insurance purchase decisions. 100% free, no registration required, mobile-responsive design, completely private calculations in browser, updated for 2025 with latest inflation rates and market returns, based on actuarial HLV calculation methods used by insurance companies and financial planners across India.