Net Worth Calculator

Human Life Value (HLV) /Net Worth Calculator

What is Human Life Value? In simple terms, it is financial loss due to untimely loss of life. If Mr A is aged 40 years and earning Rs 5 lacs p.a. and is expected to earn till his age 60, his sudden loss would cause a loss of Rs 5 lac x 20= 100 lacs to the family.But this 100 lacs was to be earned in next 20 years. So, its present value is the exact Human Life Value or Net Worth in simple terms.

Now, without falling into difficult jargon, let us talk practical.

What makes your family happy & going ? It is the INCOME which you bring in every month. We wont ask about your income. Your MONTHLY HOUSEHOLD EXPENSE (MHE) is more important in respect of quantum of your insurance.The family will need EXPENSES even in case of loss of bread winner.Let us assume, my family needs Rs.40000 pm i.e. 4.80 lacs yearly. Where from it comes in my absence?Remember, either a person can earn money or the money can earn money.To earn an income of 4.80 lacs increasing by 4% per year, in my absence, my wife needs a Bank FDR of approx 74 lacs at interest rate of 9%(full example on next page). If I have this much capital, I hardly need insurance. Else I have no choice but to have proper amount of insurance.

Below is the ACTUAL illustration of how an individual foresees the requirement, and how much under-insured one is, when it comes to LIFE INSURANCE:



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