HLV estimates the economic value of future income a family would lose. SEBI investor-awareness modules use a simplified present-value approach for term insurance planning.

Loans still due after the earner's death increase the family's burden. Existing investments and life cover reduce the fresh insurance amount needed.

Monthly family income need is projected with inflation each year and discounted at an expected return on the insurance corpus — matching standard inflation-indexed income replacement.

Term plans are commonly recommended for pure protection. Endowment or ULIP products mix investment and cover — compare costs and disclosures in the policy document.

HLV capitalises future earning years at a discount rate, then adjusts for liabilities and assets. Enter income, working years and obligations to see an illustrative cover need — not a insurer underwriting decision.

Even before dependents, cover for loans and parents’ support can matter; needs usually rise after marriage/kids. Use HLV plus liabilities minus assets, and prefer pure term for cost efficiency. Educational estimate only.

HLV estimates protection need; it does not choose products. Many planners separate cheap term cover from investments (SIP/PPF). This calculator focuses on sum-assured need, not ULIP returns.