What Is Human Life Value In Insurance?
12689 POINTSview profileTed RatliffOwner, SFS Associates,Simply put, your Human Life Value is the amount of income you will be expected to earn in your lifetime. A person earning $100,000 per year over a 30 year period, for example, would have an approximate Human Life Value of $3,000.000. So if that person wanted to protect his entire Human Life Value, he would need $3,000,000 in life insurance.Answered on June 15, 2013flag this answer
0 POINTSContact Meview profileDavid RacichPROFountain Hills, ArizonaHuman value is defined by the gross earning power of an individual over their expected lifetime; this should include Social Security benefits in retirement as well. That total earnings should also include an inflation rate, some underwriters use 3%. The total sum will give you an idea of the human value you can indemnify for life insurance purposes.Answered on June 15, 2013+01+1 this answer
0flag this answerview more answers by David Racich- 0 POINTSview profileJeff GalnerComptroller, Litigation Analytics, Inc.,Ted, I would like to respectfully disagree with your definition of what human life value is. Simply put, it is NOT the amount of income one is expected to earn in their lifetime. Earnings are a component of human life value, as are other factors, such as income taxes and personal consumption. One's HLV is their economic value to their dependents. It can be roughly estimated by taking one's expected gross earnings and subtracting income taxes and personal consumption. There's more to it than that, but that's an appropriate starting place. For a thorough explanation of what human life value is and why it's important, and to use a tool to estimate your own HLV, please visit www.humanlifevalue.comAnswered on November 15, 2013flag this answer
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