HLV is the framework life insurance companies use to determine the maximum death benefit a client can qualify for. It measures the economic value of a person’s life in terms of earning power and obligations.

Key factors:

Younger = higher multiples (more working years ahead).

Annual earned income is the foundation.

W-2 vs. business owner, stability of earnings.

Used for high-net-worth or retirees.

Personal, family protection, or business planning.

Age Range	Income Multiple	Example (Income $100,000)	Maximum Death Benefit
18–30	30–40×	$100,000 × 30–40	$3,000,000 – $4,000,000
31–40	25–30×	$100,000 × 25–30	$2,500,000 – $3,000,000
41–50	20–25×	$100,000 × 20–25	$2,000,000 – $2,500,000
51–60	15–20×	$100,000 × 15–20	$1,500,000 – $2,000,000
61–65	10–15×	$100,000 × 10–15	$1,000,000 – $1,500,000
65+	Net Worth Based*	N/A	Often 50–100% of net worth

* For high-net-worth or retirees, carriers use net worth justification (estate, liquidity, legacy).

Age-based multiple × annual income.

Net worth justification (50–100% of net worth).

be ready to show financials if applying for the high end.

25–30× multiple = $3.75M – $4.5M max

15–20× multiple = $2.25M – $3.0M max

Age: 33

Occupation: Business Owner (A-1 Fencing)

Income: $250,000

Net Worth: $5,265,000

Household Income: $850,000

Current Coverage: North American Term

25–30× $250,000 = $6.25M – $7.5M

50–100% of $5,265,000 = $2.6M – $5.2M

Personal/Family Protection: $6.25M–$7.5M (income-based).

Estate/Business Planning: Up to ~$5M more with ILIT/business justification.

Target Application: $7.5M (max per income).

If additional coverage needed, leverage net worth/business justification.

Remember: total coverage across all carriers (including existing term) must fit inside HLV allowance.