Life Insurance Needs Calculator India — Human Life Value Method 2026

Last updated: 29 April 2026 Reviewed by Deepa Krishnan, CFP

The **Human Life Value (HLV) method** calculates life insurance needs as the present value of all future income you would earn minus personal expenses, discounted at the risk-free rate. This gives a more precise insurance need than the simple 10x income rule. It accounts for your income growth, years to retirement, inflation, and existing assets and liabilities.

Annual Income (₹)

Current Age (Years)

Total Liabilities (₹)

Existing Assets (₹)

Annual Expense Growth Rate (%)

Recommended Life Cover —

Present Value of Future Income —

Coverage Gap (if any existing cover) —

View Year-by-Year Breakdown

Real-World Examples — 2026

35-year-old with family — HLV calculation

₹15 lakh annual income, 25 working years remaining. PV of income at 6% discount = ₹1.71 crore. Add ₹50 lakh home loan, subtract ₹20 lakh EPF+PPF = ₹2.01 crore total need. Round to ₹2 crore term cover.

Self-employed professional

Self-employed earning ₹25 lakh/year with no EPF/PF: HLV at 35 = ₹2.85 crore. With ₹80 lakh home loan: total need ₹3.65 crore. Irregular income makes comprehensive term insurance even more critical.

Frequently Asked Questions

What is the Human Life Value (HLV) method?

HLV calculates the present value of all future income your dependents would lose if you died today. It accounts for inflation and expected salary growth. HLV = present value of (future income × working years) + liabilities − existing assets. This is the most rigorous method for calculating life insurance needs.

Should I count EPF and PPF as existing assets?

Yes. Include all financial assets: EPF corpus, PPF, mutual funds, FDs, and existing life insurance. But don't count your home if your family will continue living in it — it's not a liquid asset for income replacement.

How often should I review life insurance coverage?

Review every 3–5 years or after major life events: marriage, childbirth, home loan, promotion (income increase). As you age, liabilities reduce and assets grow — you may need to adjust coverage. Review after 10 years of a term policy as circumstances change significantly.

Is this calculator free?

Yes, completely free on CalcPhi.

Are my inputs stored?

No. All calculations run in your browser.

Is it mobile-friendly?

Yes. Works on all modern smartphones.