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
How do you determine your Human Life Value?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
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.
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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ReplyDeleteThanks for these important information,it is useful for us and those are looking for LIC in Hyderabad
ReplyDeleteThis is a helpful information and good for those looking for LIC in hyderabad
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