Term Insurance HLV Calculator 2026
Calculate how much term life insurance cover your family needs using the Human Life Value (HLV) method.
Financial & Profile Inputs
Child higher education, marriage, emergency fund
Mutual funds, EPF, savings, existing life cover
Recommended Term Life Cover₹5,25,00,000
Based on 30 working years remaining till age 60
Estimated Monthly Term Insurance Premium₹4,528 – ₹6,943 / monthQualifies for up to ₹54,336 Section 80C tax deduction
Total Future Living Expenses:₹4,74,34,912
Total Outstanding Liabilities:₹30,00,000
Future Family Goals:₹20,00,000
Less: Existing Assets & Investments:- ₹10,00,000
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 | ₹4,74,34,912 |
| Outstanding Loans & Liabilities | Home loan, car loan, credit card, personal debt balance | ₹30,00,000 |
| Future Family Milestones | Children higher education, marriage, emergency Corpus | ₹20,00,000 |
| Less: Current Assets & Cover | EPF, mutual funds, savings, existing active life insurance | - ₹10,00,000 |
| Recommended Sum Assured (Rounded) | Net Cover rounded to standard insurance ₹25L brackets | ₹5,25,00,000 |
HLV Protection Requirements Overview
Human Life Value (HLV) Mathematical Formula
Net Life Insurance Cover Formula:
Net Cover = Σ (Annual Expense × (1 + Inflation)^t) + Liabilities + Future Goals - Existing Assets
Where t ranges from year 1 to remaining working years (Retirement Age - Current Age).
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).