Human Life Value

Human life value refers to a method of assessing life insurance needs in the view of a person's income, expenses, remaining years of earning capacity and depreciation in the value of currency over the period of time. This is done for the purpose of life insurance. It is the present value of the share from the bread winner to the family and done to determine his future earnings incase of his death. His future income is calculated in terms of his present income. Using the present value, the worth of the money in a given number of years is calculated.

In simple words, the average annual income of an individual is estimated from his present age to his age of retirement. The amount that is not allocated to others is deducted. At this point, money spent for income taxes , life and health insurance premiums and remaining self-maintenance expenses should also be deducted.

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