Human Life Value (HLV) Calculator

Calculate your Human Life Value (HLV) to determine the right life insurance cover. Based on future income, expenses, inflation, and investment returns.

Human Life Value (HLV) Calculator

Present value of your future earnings — the most accurate insurance need method

Annual income Rs 10L
Rs 2LRs 1Cr
Rs
Personal annual expenses Rs 2L

Your own spending — food, transport, entertainment — that family won't need

Rs 0Rs 50L
Rs
Expected salary growth 6%
0%15%
%
Discount rate 6%

Long-term risk-free return (10-yr govt bond rate)

4%12%
%
Working years remaining 30 yrs
540
yrs
Human Life Value
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recommended cover
10× income rule
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thumb rule comparison
15× income rule
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higher thumb rule
Annual income---
Personal expenses---
Net income for family---
Working years left---
HLV (recommended cover)---
HLV vs thumb rules
HLV: ---
10× income: ---

HLV is a planning estimate. Actual insurance need depends on existing assets, spouse income, and specific liabilities.

HLV by age — how cover need changes over career
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ThriftRupee Insight

HLV is the present value of all future income your family would lose if you die today. At age 30 earning Rs 10 lakh/year with 30 working years left, your HLV at 6% discount rate is approximately Rs 1.38 crore — the minimum your family needs to maintain their current lifestyle. Most Indians have less than 10% of their HLV insured.

Human Life Value (HLV) — The Scientific Way to Calculate Insurance Need

HLV is the present value of all future earnings your family would lose if you died today. Unlike the simple 10× income thumb rule, HLV accounts for your personal consumption (which your family won't incur), salary growth over your career, and the time value of money. It gives a more accurate — and often higher — cover recommendation, particularly for younger earners with long working years ahead.

Frequently asked questions

What is Human Life Value (HLV)?▼
HLV is the present value of your future earnings minus your personal expenses — what your dependents would actually lose financially if you died today. Formula: HLV = Annual income after personal expenses × Present Value factor (based on working years remaining and discount rate). It is the most scientifically accurate method for calculating life insurance needs.
How is HLV different from income replacement method?▼
The income replacement method (10–15× salary) is a quick thumb rule. HLV is more precise — it accounts for your personal consumption (which your family won't need after your death), the time value of money, salary growth, and inflation. HLV typically gives a more accurate (and often higher) cover requirement for younger earners.
What discount rate should I use for HLV?▼
Use the long-term risk-free rate — typically 6–7% (10-year government bond yield). This represents the return your family could earn by investing the insurance payout safely. A higher discount rate gives a lower HLV (the payout can compound to replace income with less corpus). Conservative planning uses 6%.

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