Consumer pricing and coverage concepts

Human Life Value

Human life value is an estimate of the worth of a person's future earnings to their family, used to size life insurance. It is based on income, years left to work, and discount rates.

Why it matters

The approach turns future income into a present dollar figure. It is more detailed than a rule of thumb, but depends on assumptions. Planners may use it with the needs analysis. It does not count unpaid work like child care, which also has a cost. Treat it as an estimate.

Source: iii.org

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