Is HLV better than the 10x income rule?

The 10x rule is a quick heuristic; HLV reflects your actual earning trajectory and obligations, so it gives a sharper figure for higher incomes or those with large loans.

Should I include my spouse's income?

Compute HLV separately for each earning member. Insure both if both incomes are needed to maintain the family's lifestyle.

Should I subtract existing investments?

Yes, ideally. Any liquid savings or maturity benefits already earmarked for the family reduce the cover gap.

Does HLV change over time?

Yes. As income grows, loans are paid off, and children become independent, your required cover usually peaks in your 30s-40s and tapers.

Human life value calculator

Human Life Value is the financial value of your future earnings to your dependents. It is one of the cleanest ways to decide how much term insurance you actually need rather than guessing a round number.

Human life value (HLV) calculator

Determine the right term insurance cover based on your income and liabilities.

Annual income (₹)

₹12.0 L

Total outstanding liabilities

₹20.0 L

Current age

32 yrs

Existing life cover (₹)

₹5.0 L

Your HLV

₹1.66 Cr

income replacement + liabilities

Existing cover

₹5.0 L

Cover gap

₹1.61 Cr

additional cover needed

Income stream discounted at 7% p.a. for inflation. Liabilities added at face value. Final term cover recommendation = HLV − existing cover. Consult an advisor for dependant needs, education goals, and estate planning.

How this is calculated

Inputs you provide: current age, retirement age, annual income, annual expenses, expected income growth, and existing liabilities.
Future income till retirement is projected with annual growth.
Annual personal expenses are subtracted to get the surplus available to the family.
Surplus is discounted to today's value at a conservative rate.
Outstanding loans are added on top to give the total cover required.

Common questions

Is HLV better than the 10x income rule?: The 10x rule is a quick heuristic; HLV reflects your actual earning trajectory and obligations, so it gives a sharper figure for higher incomes or those with large loans.
Should I include my spouse's income?: Compute HLV separately for each earning member. Insure both if both incomes are needed to maintain the family's lifestyle.
Should I subtract existing investments?: Yes, ideally. Any liquid savings or maturity benefits already earmarked for the family reduce the cover gap.
Does HLV change over time?: Yes. As income grows, loans are paid off, and children become independent, your required cover usually peaks in your 30s-40s and tapers.