Term Insurance Human Life Value (HLV) Calculator 2026
Calculate recommended term life insurance sum assured cover based on Human Life Value (HLV), inflation-adjusted living expenses, liabilities, and family goals
Financial & Profile Inputs
Child higher education, marriage, emergency fund
Mutual funds, EPF, savings, existing life cover
Based on 30 working years remaining till age 60
Human Life Value (HLV) Need Breakdown
| Requirement Component | Calculation Basis | Amount (₹) |
|---|---|---|
| Inflation-Adjusted Living Expenses | Monthly expense of ₹50,000 compounding at 6% inflation for 30 years | ₹4.74 Cr |
| Outstanding Loans & Liabilities | Home loan, car loan, credit card, personal debt balance | ₹30.00 L |
| Future Family Milestones | Children higher education, marriage, emergency Corpus | ₹20.00 L |
| Less: Current Assets & Cover | EPF, mutual funds, savings, existing active life insurance | - ₹10.00 L |
| Recommended Sum Assured (Rounded) | Net Cover rounded to standard insurance ₹25L brackets | ₹5.25 Cr |
HLV Protection Requirements Overview
Human Life Value (HLV) Methodology: Scientifically Sizing Your Term Life Cover
Term insurance is pure, unadulterated risk protection designed to replace your economic earning power if you pass away prematurely. A rule of thumb is securing a coverage sum assured equal to at least 10 to 15 times your annual take-home income plus all outstanding debts (home loans, car loans).
Term Life Insurance FAQs
Vital guidelines before purchasing pure protection policies in India.
What is Section 45 of the Insurance Act (the 3-Year Incontestability Clause)?
Under Section 45, an insurer cannot reject or question a life insurance death claim on any ground whatsoever after 3 full years have elapsed from the policy issuance date, provided all premiums were paid.
Authoritative Sources & Statutory Guidelines
- Insurance Regulatory and Development Authority of India (IRDAI) — Consumer protection guidelines & life insurance claim settlement regulations.
- Income Tax Department of India (Sec 80C & Sec 10(10D)) — Section 80C premium deduction up to ₹1.5 Lakhs & tax-free maturity/death benefit payouts under Sec 10(10D).
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