Life in Digits: Human Life Value Calculated in 6 Easy Steps

August 3, 2018 at 2:32 PM Leave a comment

Your human life value refers to your economic worth, which is based on multiple factors. Knowing your human life value can help you determine that after you pass, how much your family would take a loss. This value can also help you to determine what your needs are in choosing life insurance to ensure your family is well taken care of.

Here’s how you can calculate your human life value:

  1. Keep in mind your current age

This first step is easy: simply knowing your current age. Your current age will be important in calculating your human life value because this can help determine how much longer you may be working before retirement.

  1. Estimate your retirement age

Knowing your potential retirement age is important as this will help you estimate the amount of income you would potentially be bringing in from now until you officially retire. Usually, the retirement age is 60 to 65; however, some may retire sooner or later. Just think of a general retirement age. It doesn’t have to be exact and can be tentative.

As you may have expected, your current age would be subtracted from your retirement age to give you the number of years you expect to still be working until you retire.

  1. Know your current annual income

The next step in calculating your human life value is determining what your current net annual income is. This would be your gross (total) income minus any deductions or taxes. In other words, this would be your take home pay or what you make.

  1. List your liabilities

Apart from what you make, it is equally as important to calculate the debts you have via different liabilities, also known as obligations.

Keep in mind the following types of liabilities along with the value of each:

  • Home loan
  • Education loan
  • Car loan
  1. Remember the types of assets you currently have

Next, it is important to calculate the amount of assets you own. Your number of assets is your equity plus your liabilities.

Keep in mind the following types of assets along with the value of each:

  • Savings A/c
  • Mutual funds
  • Jewellery
  • Life insurance
  • Bonds/Shares
  • Fixed deposits
  1. Use an online calculator to determine what your human life value is

After you have all the above information, a quick, accurate, and convenient way to retrieve your human life value is to use a human life value calculator online. In just seconds, your value will be determined after selecting or typing in the above information.

However, because assets, liabilities, expected retirement age, and the like may change, it is important that you adjust your life insurance plan and the rest of your estate plan to yours and your family’s wants and needs as well as what your current assets and any recent major events that have taken place.

According to the Insurance Information Institute, 1 in 5 adults with life insurance feel that they don’t have enough. But calculating your human life value can assist you in getting the most relevant plan for you in the moment being.


Calculating your human life value is important, as we discussed, but fortunately is not as difficult to calculate as it may sound. Best of all, there are plenty of resources online to assist you in determining what your value is. Once you have your human life value determined, this will make it clearer what type of life insurance you will require.

About AEGON Life

Launched in July 2008 with pan-India operations, AEGON Life Insurance Company Limited has a vision to be the most recommended new age life insurance company. As a joint venture between AEGON – world’s leading financial services and Bennett, Coleman & Company – India’s leading media house, AEGON Life Insurance adopts the power of global expertise to facilitate a direct to customer approach, leveraging digital platforms to bring transparent solutions, and to prioritize customer’s needs. Our product portfolio includes term life insurance plan, pension plans, unit-linked insurance plans (ULIPs), health insurance plans, child education plans, and more.


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