Human Life Value (HLV) Calculator
Estimate your human life value — the present value of the income your family would lose if you died today — and how much life insurance you need on top of the cover you already have.
How it works
Contribution to family A = income × (1 − personal share) · HLV = A × [1 − ((1 + g) ÷ (1 + d))ⁿ] ÷ (d − g), the present value of n years of income growing at g, discounted at d (if d = g: HLV = A × n ÷ (1 + d)) · gap = HLV − existing cover
Human life value (HLV) is the economic value of your future earnings to the people who depend on you — the method introduced by Solomon Huebner and used today by insurers and by the non-profit Life Happens. It projects the income you would earn until retirement, removes what you would have spent on yourself and on taxes, and discounts what is left back to today at a safe rate of return. Unlike the DIME or needs-analysis methods it ignores specific debts and goals and focuses only on lost income.
Worked example
A 35-year-old earning 60,000 a year who spends 30% on themselves and taxes contributes 42,000.00 to the family in the first year. Growing 3% a year for 30 working years and discounted at 6%, those contributions are worth 808,344.62 today — about 13.5× income. With 100,000 of cover already in place, the extra life insurance needed is 708,344.62.
Sources: Life Happens — Human Life Value calculator · Wikipedia — Present value of a growing annuity
Frequently asked questions
What is human life value in life insurance?
It is the present value of the income your family would lose if you died today: your expected earnings until retirement, minus your own consumption and taxes, discounted to today. Insurers often use it as the maximum cover they will issue.
How is HLV different from the DIME method?
DIME adds up Debts, Income replacement for a set number of years, the Mortgage and Education costs. HLV values your whole remaining working life as a stream of income, so it is usually larger for young earners.
Which discount rate should I use?
Use a conservative after-inflation-aware return your family could earn safely on the payout — often 4% to 7%. A lower discount rate raises the HLV.
Should I buy cover equal to my full HLV?
HLV is an upper guide. Subtract existing cover and savings, and compare with a needs-based estimate; many families settle between the two.
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Educational estimate, not insurance advice. Policy wording, deductibles, depreciation schedules, surcharges and clauses differ by insurer and country — read your policy and ask your insurer or a licensed agent before deciding.