What is the Life Insurance Cover?
Human Life Value (HLV) is the present value of the income your family would lose if you were no longer there. It is the most rigorous way to size life cover — more accurate than "10× income", because it accounts for how many working years remain and how income would have grown.
The convention is to replace about 70% of income, since your own consumption would no longer be a cost.
Formula & worked example
Cover needed = HLV − existing cover
Worked example: ₹12,00,000 income at 34 with 26 working years left, 6% salary growth discounted at 8% → HLV of roughly ₹1.71 crore, or about 14× income. Less ₹25 lakh of existing cover leaves an additional need of about ₹1.46 crore.
How to use this life insurance cover calculator
- Enter your annual income.
- Set the years you would have continued working.
- Use 6% for salary growth and 8% as the discount rate — a sensible default pair.
- Subtract existing cover, including employer group insurance.
Smart tips
- HLV usually lands at 12–18× income, well above the 10× rule most people use.
- Recalculate after every major life event: marriage, a child, a home loan or a large raise.
- Buy term cover only. Endowment and ULIP policies deliver poor returns and inadequate cover.
- Do not count employer group cover as permanent — it ends with the job.
- Cover the loans separately in your head: any outstanding home loan should be fully covered.
Frequently asked questions
What is human life value?
The present value of all future income your family would lose, discounted to today. It is the most accurate way to size life insurance.
Is 10 times income enough life cover?
Often not. HLV calculations typically produce 12–18× income once salary growth and remaining working years are included.
Should I include my home loan in the cover?
Yes. Ideally your cover clears all debt and still replaces income, so the family is not forced to sell the home.
Does life cover need to increase over time?
Yes, as income and responsibilities grow. Either buy an increasing-cover plan or add a second term policy every few years.
Want the theory behind the numbers? Read our insurance guides on the Money Blog.
Written by Gurjeet Singh, Sharpen Solutions. Last reviewed 30 Sep 2026. How we check these numbers.