What is Human Life Value?


Human Life Value concept was founded by Dr. Solomon S. Huebner, the founder of ‘The American College of Life Underwriters’, in the 1920’s. HLV concept is used by various professionals like Underwriters, Courts, etc. for determining the economic value for a Human Life. For the victims of the ‘Terrorist attack of September 11, 2001’ on the twin towers, courts decided the amount of settlement based on this concept.

 Another method of insurance calculation is by applying a fixed multiplier on the annual income. Multiplier based on the age of the individual.

Age range Multiplier

20 – 30 20

31 – 40 18

41 – 50 15

51 – 60 10

So for example, a 41 year old making $100,000(male or female)
can get 1.5 million or more of insurance.

Really when you think about it here is a few factors to consider:

1. Annual Income of the life

2. Balance of active earning period till retirement

3. Personal Expenses

4. Inflation

5. Future increase in salary

5.5 Benefits (often the bread winner has benefits like dental, medical for the family covered by the company he/she works for…this may be gone at their death costing hundreds every month to get as a seperate coverage!)

6. Education for childern/income (support for disabilied dependents)…and many more I have not listed here.