Like every material object, human life also has an “economic value”. It varies from person to person depends on their individual profile. But, in India most of us have not realized or calculated our own value. Human life value is becoming more and more familiar to us with the rapid growth of insurance sector. As the competition in the insurance industry is very high, the insurance companies are using Human Life Value as one of the marketing tool.
Human life value is the capitalized value of the net earning of an individual for the rest of his/her working span.
In short, Human Life Value is the present value of the total income of the individual, which is lost to the family in the event of his untimely death.
Let us take an example, Mr. A aged 30, earning a gross income of Rs. 300000 today, will retire at the age of 60. Out of his monthly salary of Rs.25000, he uses Rs.5000 p.m for income tax and personal expenses.
So, his per month salary is 20000 and annual salary is 240000. Assuming a 10% growth in his income each year, he would have a net earning of Rs.1, 76, 40,000 in the next 30 years till his retirement.
The present value of this net earning discounted @8% is Rs.44, 54,884.
If he doesn’t return home today, his family will lose this amount forever. Therefore Mr. A’s human life value is Rs. 44, 54,884.
"hi"
- SRIKANTH HASSAN CHANDRASHEKAR, 20th January 2009, Tuesday"1. Should this be considered as an expense. 2. Is their any time stipulation to pay the premium like 10 yrs, 15 yrs. 3. Will i be getting any returns after some years. 4. Which Insurance Company deals with the above insurance. "
- Arathi Naveen, 21st January 2009, Wednesday"what about 80 years and above dependents."
- prakashcs, 21st January 2009, Wednesday"This article is too good as the previous articles...please keep writing like this that will be increase our knowledge. "
- Rajib Ram Ganguly, 21st January 2009, Wednesday"The article on Personal Accident Insurance is comprehensive and simple to understand. It elucidates the basics even for a layman to understand."
- ramky, 21st January 2009, Wednesday"great..thanks!"
- sachin, 21st January 2009, Wednesday"How can anyone decide unless you also give the quantum of premium payable for the insurance?The most important piece of information is not given in your article!"
- S. Saran, 21st January 2009, Wednesday"Shall appreciate service/benfits ranked service provider of such policies for information and assessment. Thanks."
- Pushpakaran Thiyadi, 22nd January 2009, Thursday"Personal Accident Insurance policy details for Quinn India"
- Thrivikram, 22nd January 2009, Thursday"Its really good article , a layman can uderstand. Thanks for sharing with us."
- Manjunatha, 22nd January 2009, Thursday"Dear all Mamber Of the Insurance Team I read the article and feel the importance of that police of our daily life .That police is need for our life . I suggest all of the people who work in Industrial line may be insured themself with presonal accident insurance for their family secure. Thanks Amit Thapa Dehradun ,Uttrakhand"
- Amit thapa, 22nd January 2009, Thursday"Dear all Mamber Of the Insurance Team I read the article and feel the importance of that police of our daily life .That police is need for our life . I suggest all of the people who work in Industrial line may be insured themself with presonal accident insurance for their family secure. Thanks Amit Thapa Dehradun ,Uttrakhand"
- Amit thapa, 22nd January 2009, Thursday"thanks"
- rageshkuniyil, 22nd January 2009, Thursday"nice one"
- surjeet shantal, 22nd January 2009, Thursday"why not we reduce the cost of occuring the Accidents which reflects to give increae the cost of insurance and in other way they operating huge cycle for their net work this is also impact the increase of cost of insurance policy why dont you see in this direction."
- ssk ghattameneni, 22nd January 2009, Thursday"why not we reduce the cost of occuring the Accidents which reflects to give increae the cost of insurance and in other way they operating huge cycle for their net work this is also impact the increase of cost of insurance policy why dont you see in this direction."
- ssk ghattameneni, 22nd January 2009, Thursday"Contact me soon, inetersted, sudhakar 9704229392"
- sudhakar, 22nd January 2009, Thursday"fs"
- manjunatha, 23rd January 2009, Friday"sdfhdhj"
- , 23rd January 2009, Friday"good article, its really helps each and everyone. this accidental insurance really support financially...those who have month on month regular financial obligations, "
- VIKRAM KASIBHATLA, 23rd January 2009, Friday"pppp"
- deepaksharwal, 23rd January 2009, Friday"knowledge"
- salleen, 24th January 2009, Saturday"thanks"
- Bibekananda mohanty, 24th January 2009, Saturday"i have service a privt shipping company for paradip port.paradip,orissa "
- Bibekananda mohanty, 24th January 2009, Saturday"well written article in simple words. more such articles are required to educate comman people like us. wonderful job done."
- Sankara Narayanan, 25th January 2009, Sunday"thanks"
- stanley, 25th January 2009, Sunday"thanku"
- AJEET BALIYAN, 25th January 2009, Sunday"our discussions of 23rd Jan'09"
- sampath@robusthotels.com, 25th January 2009, Sunday"I am 54 years of age. what would be the annual premium payable by me for accidental insurance. I also hold three credit cards, is there any accidental insurance cover available through those as well?"
- Col Amarjit Singh(Retd), 26th January 2009, Monday"What premium covers , how much insurance details not available ?"
- janardhana Reddy, 27th January 2009, Tuesday"It is very good. It will be more useful if u give contact details of persons dealing with personal Accident Insurance. Thanks. "
- R.Vijayakumaran, 28th January 2009, Wednesday"we want family mediclaim polcy but member in my family eight person how much pay one year in polcy"
- MANOJ KUMAR, 28th January 2009, Wednesday"I would like to purchse this policy, kindly tell me premium."
- Avinash, 28th January 2009, Wednesday"Narayana Naik so Somla Naik NNP Thanda[v] Tatrakal[p] Vajrakarur[m] Anantapur[d] Andhraprades"
- Narayanar Naik, 30th January 2009, Friday"Interesting n useful. Thanx!"
- A.S. Rana, 9th February 2009, Monday"good article, its really helps each and everyone. this accidental insurance really support financially...those who have month on month regular financial obligations, "
- murugesan, 9th February 2009, Monday"A very good, exhaustie and authentic article for common person. Thanks a lot."
- anil chauhan, 9th February 2009, Monday"please send more details about Special Additional Benefits. can u pl. send details how can we get group accident insurance"
- man jain, 9th February 2009, Monday"very useful............"
- radhe, 11th February 2009, Wednesday"plz send more detail n name of the policies"
- namita, 13th February 2009, Friday"Sir, any deductions on Payment of Personal Accident Insurance Premium in Income Tax for an indudual. R.S.Sharma Mumbai"
- R.S.Sharma, 26th February 2009, Thursday"is it good to invest in the products like unit link."
- rustom balsara, 28th February 2009, Saturday"I am working in saudi arabia and want personal accident insurance of INR 10 Milion. Can you advice which company offer good policy"
- VRUJLAL, 1st March 2009, Sunday"Thanks"
- Sathya, 7th March 2009, Saturday"Kindly send more about policis which helps me in future life"
- Santosh Kumar Mahapatra, 8th March 2009, Sunday"Nice article"
- chandra, 9th March 2009, Monday"Kindly inform if any scheme is available for mediclaim+personal accident cover on lowest premium for a person of 42 years (family floater plan)"
- Dinesh Misra, 9th March 2009, Monday"pls get into some more intricacies on the basis of policy features like what kind of scheme should be chosen with different permutations & combinations of requirements or personnal choices"
- vaibhav jain, 24th March 2009, Tuesday"Hello everybody. Very nice article. For any kind of INSURANCE (Life, Health, Car, Two Wheeler, Accident, Factory, House) from any company (KOTAK, ICICI, BIRLA, AVIVA, AEGON RELIGARE, TATA, SBI, LIC, BAJAJ, MAX NEWYORK, METLIFE, RELIANCE, HDFC) Please contact 022-42444606"
- Sunita Agaskar, 25th March 2009, Wednesday"Whether the cover is worldwide? How the sum assured is calculated? What proof of income is required or not at all required? Whether medical expenses reimbursement benefit is given to any category of policyholder or employees only?"
- d b desai, 26th March 2009, Thursday"Article gives inside details of this type of Policy. I am providing one window service for "Life Insurance, Health Insurance, Travel Insurance, Mutual Funds, Indirect Taxation, etc." Just a call away in NCR."
- Mohan Sharma, 13th April 2009, Monday"very very useful and educative; any layman can understand the benefits of the scheme as the language is simple and lucid. thanks. vsdavey"
- vsdavey, 13th April 2009, Monday"Nice Article,, good frame work.. "
- Amit Sinha, 9th May 2009, Saturday"I want know PersonaL accident Insurance Premium and Coverage amount details "
- R.DEVARAJU, 25th May 2009, Monday"i have not any Personal Accident Insurance .so pls advise for good accident policy. Regards Ashish Patel "
- Ashish Patel, 26th May 2009, Tuesday"thanks"
- matavalam ramesh, 27th May 2009, Wednesday"good policyyyyyyyyy"
- devendra, 30th May 2009, Saturday"I want to purchase TATA-AIG Health plus policy. If anybody having this policy then share their experience about the policy."
- Ajay Maidasani, 1st June 2009, Monday"mughe insured hona h"
- dinesh, 3rd June 2009, Wednesday"anybody looking for any kind of insurance in BANGALORE plz feel free to contact"
- dhiraj goswami, 3rd June 2009, Wednesday"Thanks"
- shivan, 4th June 2009, Thursday"I Am 42 Yr old mechanical engineer working in mumbai, I want to purchase a PAI, Please advice which one is good"
- Rajendra Kumar Gupta, 5th June 2009, Friday"I Am 42 Yr old mechanical engineer working in mumbai, I want to purchase a PAI, Please advice which one is good"
- Rajendra Kumar Gupta, 5th June 2009, Friday"Like to know aboutvarious plans"
- anand, 16th June 2009, Tuesday"Pls go thru this article"
- Mahendra Patil, 17th June 2009, Wednesday" i Want to talk ur executive. I have some Question"
- Deepak Shukla, 17th June 2009, Wednesday"I want know PersonaL accident Insurance Premium and Coverage amount details "
- nmagendiran, 17th June 2009, Wednesday"Nice Article and useful also"
- renuka malik, 19th June 2009, Friday"Pl. let me know which company is the most attractively priced with maximum benefits. I'm 37 yrs old."
- Winston Adams, 10th July 2009, Friday"A useful information "
- sumusha, 2nd June 2010, Wednesday"Primeum amount for 10 lac & 20 lac for 30years terms"
- Dilip Kumar Singh, 19th September 2011, Monday"I had met with an accident and injured my elbow in which my elbow bone was crushed , I was operated and the bone was reconnected using wires, I am unable to work with my hand as I was before the accident . Can I claim benefits under Partial disability."
- Praveen , 27th March 2012, Tuesday"please tell me about human value and i earning per month 5000/ and my expensive for per month is 4000/ and i saving only one thousand per month. "
- ganesh m.n., 1st May 2012, Tuesday
