Many of you may be in dilemma on how to calculate human life value and how to decide the correct sum assured amount while purchasing a life insurance policy. In that case, you can use the human life value calculator which calculates the sum assured required based on the data entered. The human value calculator helps you identify your life insurance needs based on your annual income, expenses, liabilities, and other investments to secure your family’s future and prevent them from facing financial difficulties.
Human Life value calculators are decision-making tools that can help you determine how much life insurance coverage is needed to secure the financial future of your loved ones in case of your absence. They help you make decisions about your life by assessing the different options and outcomes that are available to you.
Many life value calculators in India are available on the internet. But not all of them are equally good. In this article, we will be looking at the best life value calculator in India and how to use it. It is important to note that a life value calculator is just a tool and it cannot predict anything with certainty. It is just a way to estimate your worth and help you plan for the future accordingly. The best human life value calculator in India is one that provides you with the most accurate results, which can then be used for planning purposes.
What is Human Life Value Calculator?
A human life value calculator is an online tool that helps to calculate the value of human life and that can help you find the right amount of insurance coverage you need. This calculator is used in cost-benefit analysis, which is an important tool for determining whether or not to purchase the right amount of coverage.
The life value calculator can be used to help make decisions about what types of risks are worth taking and what types of actions should be avoided. It can also be used in the process of determining how much amount of the sum assured is the right amount to secure the financial future of your loved ones in case of something happens to you.
How does a Human Life Value Calculator work?
The Human Life Value Calculator is a tool that is used by insurance companies to determine the value of an individual’s life. It is an indicator of your insurance requirement based on your income and its future worth. The calculator takes into account factors such as the number of dependents, income level, and age to calculate the value of an individual’s life. It is defined as the present value of your future earnings, liabilities, savings, and investments. This tool can help you understand how your death would affect the financial situation of your loved ones. This will subsequently help you decide the insurance benefit that you will need to assure as income replacement for your family to survive.
Why Human Life Value Calculator is Important?
There are many reasons why a human life value calculator is important. The first one is that it helps quantify the worth of human life. This is important because it helps people understand what they can do to save lives and how much they can spend on saving lives.
Here are the main reasons why the human life value calculator is important:
- The first reason is that it helps with decision-making in various scenarios.
- It helps in assessing whether your current life coverage is sufficient.
- It helps you analyze if you need additional life insurance requirements if any
- Helps you find out how much more insurance you require if you need an additional plan.
- It helps to measure how much money your family would need to sustain themselves in case of your death.
What are the Factors Affecting Human Life Value Calculator?
Many factors affect human life value calculators. Let us understand the factors to be considered for the human life calculator:-
- Current age – Age should be calculated based on the last birthday.
- Retirement age – At what age you would be retiring?
- Educational Qualification – Graduate and Non-graduate
- Annual income – Income from all the sources
- Monthly expense – All the expenses incurred in a month
- Existing insurance cover – if you have taken any other life insurance policy
- Liabilities- this can include any outstanding loans such as Home loans, Personal loans, and any other type of loans.
How to Calculate Human Life Value?
The human life insurance value calculator is the best tool to decide the sum assured to be taken by the customer as it takes into consideration all the factors. The Human Life Value Calculator can be found online for calculating the sum assured required.
Human life value is the monetary value of a person’s life. Evaluating the human life value in insurance before purchasing the life insurance policyis important as it determines how much coverage is required to cover both the present and future expenses of the family in case of the death of the sole bread earner. There are two different ways to calculate human life value; one is the income replacement method and the other is the need-based method.
Income Replacement Method: In the income replacement method, whatever income the family needs for support is calculated. This is the most popular method of calculating Human Life Value. It calculates the total amount of money that is needed to replace your current income for your entire life to sustain your family. In this method, all your future earnings are taken into account to calculate your Human Life Value.
Need-Based Method: In the need-based method, the amount needed to cover the needs of the family in case of the death of the sole breadwinner is calculated. This method calculates your life insurance requirement and then provides the total coverage that you may need in your entire lifetime based on your current income, lifestyle, dependents, and other factors.
Steps to Use Human Life Value Calculator
- Enter your details such as annual income, age, liabilities, etc.
- Provide details of your present life insurance cover, if any.
- Click on ‘Calculate’.
- Your Human Life Value will be displayed.
- If you want to recalculate, click on ‘Reset’.
- If you want to check your life insurance coverage premium, click on ‘Check Premium’.
Steps to Use Life Insurance Calculator at PolicyBachat
Step 1: The first step in using the online life insurance premium calculator in India is to click on the online life insurance premium calculator and proceed to the life insurance policy value calculator section.
Step 2: The next step in using the life insurance policy premium calculator is to enter the below details clearly and correctly.
- Gender of the applicant
- Tobacco consumption; Yes or No
- Annual income from the options given in the calculator
- Occupation type; Salaried or Self Employed
- Age of the applicant; to be entered as Date of Birth
- Name of the applicant and email id of the applicant.
Step 3: In this step, you can enter your requirements such as:-
- Sum assured required under the life insurance policy
- Tenure – maximum age at the coverage is required
- Premium payment type - Regular or Lump sum or Limited pay
- Premium payment frequency - Monthly Quarterly or Half-yearly or Yearly
- Payout type - Lump sum or Income or Combination of both
- Add-ons such as Critical Illness, Waiver of premium, and Accidental disability cover can be selected and the premium would change accordingly.
Step 4: This is the last and final step where you need to make payment to the insurance company and it only takes a few minutes to finish this process. The premium figure displayed may be changed subject to medical underwriting. Once the premium payment is made, the customer receives confirmation regarding the same and the next step would be the tele medicals or physical medical verification where the customer needs to undergo medical tests or declare health condition on the telephone to the insurance company before policy issuance.
Conclusion & Wrap Up
The Human Life Value Calculator is a powerful tool that can help you make better decisions in life. It takes into account many factors to calculate the value of your life. To know how to calculate human life value in insurance go through our portal and find the best life insurance calculator from different life insurance companies.
Related FAQs
Why Do You Need To Calculate Your Human Life Value?
The Human Life Value is the total amount of insurance coverage that insurance companies will provide you. It’s the maximum amount of coverage you might need, depending on various factors such as your income and assets, age, liabilities, etc. So, it is better to know about the total amount of insurance coverage you should have before you buy an insurance policy.
Why Do I Use Human Life Value Calculator?
The human life value calculator is a tool to help you decide if it's worth it for you to take a certain action. The calculator is not perfect, but it can be helpful in some situations. The human value calculator helps you identify your life insurance needs based on your annual income, expenses, liabilities, and other investments to secure your family’s future and prevent them from facing financial difficulties.
Will I Need to Purchase Additional Coverage if the HLV Calculator Displays So?
The Human Life Value Calculator is a tool that can be used to help you better understand the cost of your coverage and what you might need to purchase in addition to your current coverage. When assessing what kind of life insurance to invest in, it's up to you to choose. But, we advise you to go for enhanced coverage if your existing coverage becomes insufficient when checked with the human life calculator.
How Is Human Life Value Calculated?
Some of the key elements based on which your Human Life Value will be calculated are as follows:
- Age
- Annual income
- Monthly expenses
- Existing life cover
How Much Life Insurance Coverage Is Enough Coverage?
It is important to understand that your life insurance coverage will be your income replacement in case of your absence. So it is important to consider how much life insurance you need, as well as how long you will want it to last. Many factors play into this decision such as your age, health status, and family situation so make sure you do your research before choosing what kind of policy would be best for you.