Human Life Value
An estimate of the economic worth of a person’s future earnings to their family, used to size life insurance.
What does human life value mean?
It’s the present value of the income your family relies on over your working years. Along with the needs-based (DIME) method, it’s one of two common ways to decide how much life insurance to buy.
Put it to use
Human Life Value One of your most important assets is your ability to earn a paycheck. This calculator is designed to help you understand today's value of your future earning. Comprehensive Life Insurance Analysis How much life insurance do you need? This comprehensive life calculator includes detailed net worth analysis, budgeting and college savings helps you find out.
Related terms
Human Life Value — frequently asked
How much life insurance do I need?
A common rule is 10–12× your annual income, but a needs analysis is better: add up income to replace, debts, mortgage, and future costs like college, then subtract existing savings and coverage. The gap is roughly what you need.
What is the human life value method?
It estimates life insurance need by capitalizing your future earnings — the income your dependents would lose if you died. It values you as an economic engine, complementing the needs-based approach that tallies specific obligations.