RESUME APPLICATION PAY PREMIUM
Fund Performance

Fund Performance

Knowledge Center

Knowledge Center

About Us

About Us

Tools and Calculators

Tools & Calculators

Quick links

Mobile (Download app)
  • Webpages
  • Documents
  • HDFC Life ClassicAssure PlusInvestment
  • HDFC Life ClassicAssure PlusInvestment
  • HDFC Life ClassicAssure PlusInvestment

For NRI Customers

(To Buy a Policy)

(If you're our existing customer)

For Online Policy Purchase

(New and Ongoing Applications)

Branch Locator

For Existing Customers

(Issued Policy)

Fund Performance Check

RESUME APPLICATION PAY PREMIUM

What do you want to do?

Quick links

Mobile (Download app)

Download HDFC Life App

Buy plans, track your policy, make renewal payments & monitor fund performance with HDFC Life App, Download Now!

Apple Logo Go to Google Play Store

Human life value: know it and how to calculate

down-arrow
Human life value: know it and how to calculate
December 18, 2018
Life is full of uncertainties and unforeseen circumstances. As a responsible person with dependent family members or other relatives, it is very important for you to appreciate the role that financial freedom and core monetary strength plays. Everyone wants to secure the future of their loved ones at all times and for this purpose, the various financial activities are driven by the need of having enough so that the finances of the loved ones do not suffer, even in our absence. This is where insurance comes as a solution to the financial woes and relieves the money-related stress from our lives. Having an insurance plan in place allows you to retain your financial corpus, while enriching your monetary flexibility.
 
A standard, traditional life insurance policy is very beneficial as unlike term insurance plans, it offers plan maturity proceeds to the policy holder on completion of the policy term. Besides, the policy entitles the nominee(s) of the policy holder to receive the total sum assured in the event of the policy holder's demise within the plan term. It acts as a complimentary addition to your investment portfolio and provides an assured return against the premiums paid. Life insurance also serves as an instrument for tax benefits under Section 80C of the Income Tax Act, 1961 and additionally, offers several benefits (in the shape of riders) that can be purchased together with the main plan.
 
Before purchasing a life insurance policy, you must compare the different features that are being offered by various insurers. One of the most basic and important factors that must be considered at the very outset is the amount of coverage required. For getting the best idea regarding the coverage that you must seek, it is important to calculate the human life value. The tool for this is the human life value calculator. This tool makes use of following factors while calculating the amount of coverage that you should aim for:
  1. The salary of the person: For a better calculation, you must mention your net salary and exclude any additional benefits.
  2. Regular income from various sources, apart from salary, like gains made through investments etc. or earnings that you may have as the owner of any rented property.
  3. The person's current age
  4. The age at which the person will retire (for salaried persons)
  5. Your liquid savings: This includes savings in bank excluding any FDs or RDs (Recurring Deposits)
  6. You bank FDs
  7. Your gross savings (apart from the two mentioned in points 5 and 6)
  8. Your loans and liabilities etc: This includes any personal loans, any outstanding home loans, student loan, vehicle loan etc.
  9. Existing coverage: This factor takes into consideration the fact you may already be insured under any existing policies (for example, under term plans or under any joint family floater schemes). Therefore, your current coverage scope, if any, must be duly mentioned.

HDFC Life offers HDFC Life Human life value calculator - an online tool that answers your insurance related queries and helps you make an informed decision in line with your specific requirements. For details, click on the mentioned link: https://www.hdfclife.com/financial-tools-calculators/human-life-value-calculator.

 

CALCULATE PREMIUM

Show Full Article
Hide Full Article

Term Plan Articles Term Plan Articles

Investment Articles Investment Articles

Savings Articles Savings Articles

Life Insurance Articles Life Insurance Articles

Tax Articles Tax Articles

Retirement Articles Retirement Articles

ULIP Articles ULIP Articles

Health Plans Articles Health Plans Articles

Child Plans Articles Child Plans Articles

Popular Calculators Popular Calculators

Francis Rodrigues Francis Rodrigues

Francis Rodrigues has a decade long experience in the insurance sector, and as SVP, E-Commerce and Digital Marketing, HDFC Life, manages the online sales channel, as well as digital and performance marketing. He has had hands-on experience in setting up sales channels and functional teams from scratch over a career spanning 2 decades.

LinkedIn profile
Author Profile Written By:
Vishal Subharwal Vishal Subharwal

Vishal Subharwal heads the Strategy, Marketing, E-Commerce, Digital Business & Sustainability initiatives at HDFC Life. He is responsible for crafting and ensuring successful implementation of the overall organisation strategy.

LinkedIn profile
Reviewed By Reviewed By:

Here's all you should know about life insurance.

We help you to make informed insurance decisions for a lifetime.

Blue Chip Fund

Blue Chip Fund

"Blue chip fund invests in stocks / shares of well-established companies with credible financial performance, market capitalization & steady payout of dividends."

Diversified Equity Mutual Funds

Insurance Overload: Are You Hoarding Policies Instead of Securing Your Future?

Single Premium Term Insurance: Meaning, Benefits & Types

Explore the details of a Single Premium Policy in term life insurance. This guide provides insights into its meaning, benefits, and types, offering a comprehensive overview.

Single Premium Term Insurance: Meaning, Benefits & Types
Early Investment for Financial Security Previous
Are Money Back Policies Really Productive? Next
HDFC life
HDFC life

HDFC Life

Reviewed by Life Insurance Experts

HDFC LIFE IS A TRUSTED LIFE INSURANCE PARTNER

We at HDFC Life are committed to offer innovative products and services that enable individuals live a ‘Life of Pride’. For over two decades we have been providing life insurance plans - protection, pension, savings, investment, annuity and health.

Popular Search

Popular Searches