Human Life Value (HLV) Calculator & Guide
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.
Confidential & Non-binding
Human Life Value Calculator
Human Life Value Calculator
INCOME-BASED HLV
NET WORTH-BASED HLV
TARGET RECOMMENDATION (BLENDED)
“This figure represents the total economic justification across all carriers. If additional coverage is needed beyond this, we leverage business-specific net worth justification.”
WHAT HLV IS BASED ON
HLV is more than just a number; it is a holistic calculation of your current and future economic contribution to your dependents and business partners.
Age
Younger = higher multiples (more working years ahead).
Income
Annual earned income is the foundation.
Occupation & Stability
W-2 vs. business owner, stability of earnings.
Net Worth & Liabilities
Used for high-net-worth or retirees.
Purpose of Coverage
Personal, family protection, or business planning.
General Income Multipliers by Age
| 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).
CASE EXAMPLE
Real-world application of the HLV framework for a business owner with blended income and assets.
HNW / Retirees: Asset-based justification (50–100% of net worth).
Ready to Cover your true value?
Total coverage across all carriers (including existing term) must fit inside your HLV allowance. We help you structure your portfolio to maximize this allowance.
Example Scenarios
Age 35 – Income $150,000
25–30× multiple = $3.75M – $4.5M max
Age 60 – Income $150,000
15–20× multiple = $2.25M – $3.0M max
Case Example
Client Snapshot
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
Income-Based
HLV
25–30× $250,000 = $6.25M – $7.5M
Net Worth–Based HLV
50–100% of $5,265,000 = $2.6M – $5.2M
Blended Justification
Personal/Family Protection: $6.25M–$7.5M (income-based).
Blended Justification
Estate/Business Planning: Up to ~$5M more with ILIT/business justification.
FINAL RECOMMENDATION
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.
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