Your life is invaluable. Yet, there is a certain worth that can be
attributed to the financial support you offer to your parents, spouse or children.
This worth is referred to as Human Life Value (HLV). In the future, if your
family does not have the protective blanket of your presence, they will no
longer be able to enjoy the benefits of the income you earned. Put simply, Human Life Value is the present value of your future earnings.
You should calculate your Human Life Value so you can accordingly invest in insurance plans that provide your family with adequate finances and security in your absence
You should calculate your Human Life Value so you can accordingly invest in insurance plans that provide your family with adequate finances and security in your absence
How do you determine your Human Life Value?
Your Human Life Value is determined by 3 factors:
1. Your age
2. Current and future expenses
3. Current and future income
As a thumb rule, You should insure yourself for an amount approximately 5 to 8 times your annual income.
Your Human Life Value is determined by 3 factors:
1. Your age
2. Current and future expenses
3. Current and future income
As a thumb rule, You should insure yourself for an amount approximately 5 to 8 times your annual income.
Of course, the exact amount of your investment
should be determined by the number of people who depend on you, your existing
investments, your expenses and your lifestyle.
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