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📊 Actuarial Present Value Engine • Capital Needs Audit • Zero Server Storage

Human Life Value & Capital Needs Analyzer

Determine your exact financial value to dependents. Models Present Value (PV) future earnings, personal consumption offsets, debt amortization, and college inflation.

1. Earning Capacity & Timeline Actuarial Inputs
2. Consumption Offsets & Discount Rate Net Dependent Contribution
Self-maintenance & personal tax share
Expected risk-free / conservative yield
Current active group / individual cover
3. Liabilities, Mortgages & Education Buffer Immediate Capital Needs
Actuarial Life Insurance Need
$1,452,000
vs. 10x Rule: $950,000

Based on discounted cash-flow replacement of your earnings plus immediate debt payoff requirements, your family requires this capital to preserve living standards.

Present Value (PV) Earnings $0
Debt & College Add-ons $0
Existing Policy Credit -$0
Years to Retirement 33 Years
Capital Allocation Breakdown Needs Distribution
Optimal Policy Term Recommendation Term Structuring
Methodology: Present Value Discounting 100% In-RAM

Actuarial HLV vs. Crude Rule of Thumb

Why the traditional "10x annual income" calculation dangerously underinsures young families.

Dimension Actuarial HLV & Capital Needs Crude 10x Income Rule
Time Horizon Calculates exact years until youngest child's independence or retirement. Assumes uniform 10-year horizon regardless of whether you are 25 or 58.
Debt & Mortgages Separately provisions full debt payoff so survivor income isn't eaten by interest. Ignores debt load completely.
Inflation & College Accounts for salary growth vs. investment discount yields. Assumes zero inflation and static purchasing power.

The Mathematical Foundation of Human Life Value (HLV)

Pioneered by Dr. Solomon S. Huebner in 1924, Human Life Value (HLV) treats an individual's earning ability as an economic asset. In mathematical finance, your economic life value is the discounted net present value of your expected future earnings allocated to your dependents.

1. The Present Value Discounting Formula

If your net income dedicated to family support in year $t$ is $C_t$ and the investment discount rate is $r$, the capital pool required today to replicate that income over $n$ working years is:

$$HLV = \sum_{t=1}^{n} \frac{C_t}{(1 + r)^t} + \text{Debts} + \text{College Buffers} - \text{Existing Assets}$$

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Frequently Asked Questions

Why is personal consumption deducted from income?

Life insurance replaces the financial loss experienced by surviving dependents. Personal income taxes, personal vehicle expenses, and individual maintenance cease, so insuring 100% of gross earnings leads to overpaying for unnecessary coverage.

Is my salary or debt information uploaded to any server?

Never. All calculations execute 100% locally in your device's browser memory (RAM).