What is your Human Life Value?
Beyond all doubt, your life is invaluable. Yet, there is a certain worth that can be attributed to the financial support you offer 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. In simple terms, Human Life Value is the present value of your future earnings.
How do you determine your Human Life Value?
Your Human Life Value is determined by 3 factors:
- Your age
- Current and future expenses
- Current and future income
- As a thumb rule, if you are 30 years of age, you should insure yourself for an amount approximately 8 times your annual income. At 35, the investment should be close to 6 times your income. Of course, the exact amount of your investment should be determined by the number of people who depend on you, the existing investments and your life stage.
Why should you calculate your Human Life Value?
You should calculate your Human Life Value so you can accordingly invest in insurance plans that will provide your family with adequate finances and hence security, even in your absence.
What are the tax benefits available?
Life, Pension and Health insurance as a tax saving tool, offers savings under various sections of the income tax act. Some of the key tax benefits offered are as follows:
- Our Life Insurance policies are eligible for tax deduction under Sec. 80C.
- Our Pension policies are eligible for a tax deduction under Sec. 80CCC.
- Our Health Insurance policies/ riders are eligible for tax deduction under Sec. 80D.
- The proceeds of our Life Insurance policies are exempt under Sec 10(10D), subject to norms prescribed in that section.
© 2013, ICICI Prudential Life Insurance Co. Ltd. Registered Address: ICICI Pru Life Towers, 1089, Appasaheb Marathe Marg, Prabhadevi, Mumbai - 400025. Reg. No.: 105. Insurance is the subject matter of the solicitation. For more details on risk factors, terms and conditions, please read the sales brochure carefully before concluding a sale. Tax benefits under the policy are subject to conditions under section 80C, 80CCC, 80D, 10(10D) and 10(10A) of the Income Tax Act, 1961. Service tax and education cess will be charged extra as per applicable rates. The tax laws are subject to amendments from time to time
Fullerton India Credit Company Ltd. with registered office at Megh Towers, Third Floor, Old No. 307, New No.165, Poonamallee High Road, Maduravoyal, Chennai-600095 is a corporate agent of ICICI Prudential Life Insurance Company Limited ("ICICI Prulife'). The contract of insurance is with ICICI Prulife who is liable for all valid claims on the policy. Fullerton India Credit Company Ltd. customer's participation in the policy is entirely voluntary.advertisement code in CA/II/1682/2012-13
*The above coverage details are indicative and subject to change.
**Insurance is the subject matter of solicitation.