Approach that Can Help You Make Better Choices in Financial Planning for Your Clients

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Financial Planning


Most people value human lives and want other people to as well, but it can be difficult to properly account for the value of human life in an insurance strategy. The human life value approach (HLV) is an insurance paradigm focusing on the benefits people receive from their lives rather than on their monetary loss from a specific event or circumstance.

Instead of simply insuring against loss, the HLV approach aims to create a positive experience for the insured and maximizes the human capital returned to society. The HLV approach has the potential to improve the lives of people with a wide range of needs and circumstances, including the elderly, people with disabilities, and the unemployed; those who are currently insured but are unhappy with their current coverage; and those who are now uninsured and would like to purchase insurance.

What is a Human Life Calculator?

Given that it considers all the variables, the HLV calculator is the finest tool for determining the customer’s desired sum. Use the HLV available online to determine the necessary sum insured for your clients:

  • The human life value approach is a person’s life’s value in money. Evaluating the HLV before purchasing a life insurance policy is critical since it indicates the coverage required to meet the family’s present and future needs if the sole source of income goes away.
  • The income replacement approach and the need-based method are used to determine HLV. The amount required to meet the family’s needs if the only breadwinner passes away is calculated using the need-based technique. At the same time, the income replacement approach insurance calculator determines the amount of income the family requires to support itself.

Factors influencing the HLV calculator:

  • Age at present: Age should be determined based on the last birthday.
  • What is your client’s retirement age?
  • Education Requirements: Graduate and/or Undergraduate.
  • Annual revenue – Total yearly income from all sources.
  • Expenses that are incurred each month as a whole.
  • Existing insurance coverage: If they have already purchased another life insurance policy.
  • Liabilities: This can contain any unpaid debts, including credit card balances and loans of any kind, including personal and home loans.

Importance of HLV Calculator:

  • It helps your client determine whether their current life insurance is adequate.
  • Enables them to determine whether any additional life insurance is necessary.
  • If they were ever to pass away, how much funds would be needed to keep their family fed and clothed?

Important considerations when determining the value of human life:

  • HLV should be reviewed annually because it is a shifting target. The goal should be to nail the overall trend instead of chasing the updated HLV each year, understanding that the natural and estimated will eventually diverge.
  • Inform your client that there is no need to be intimidated by the HLV values displayed. The “number” is only a starting point and needs to be considered considering their current capacity to save money.
  • Inform them to remain disciplined by always planning to ensure that their family will not have to make concessions to meet their unmet demands while they are away.


The human life value is the cost of sustaining your family if you pass away and cannot work. The overall money you might earn for your family throughout your life is simply an estimate.

This computation, too, is subject to several assumptions, and there is still no set formula for it. But it’s crucial to comprehend the HLV to keep things simple and estimate how much life insurance you’ll need overall.

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Wow! I can't believe we finally got to meet in person. You probably remember me from class or an event, and that's why this profile is so interesting - it traces my journey from student-athlete at the University of California Davis into a successful entrepreneur with multiple ventures under her belt by age 25

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