Human life value
Certified Financial Planner glossary · Certified Financial Planner
Definition
The capitalized present value of an insured’s future net economic contribution to survivors.
Human life value in plain English
A young parent asks "how much life insurance is enough?" and someone quotes a round multiple of salary. Human life value reframes the need as the capitalized present value of the insured's future net economic contribution to survivors: earnings, benefits, and services, net of personal consumption, discounted. It is a needs-analysis cousin focused on replacing economic contribution, not a burial-expense rider and not an estate-liquidity number. Capitalizing future net earnings for survivors puts you in human life value territory.
Practice Human life value
Which of the following best describes the core objective of the Needs Approach for the Parnells?
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