Determination of Human Life Value
The human-life approach is a method of calculating the amount of life insurance a family will need that is based on the financial loss the family would incur if the insured person were to pass away today. It is usually calculated by taking into account a number of factors, including, but not limited to, the insured individual's age, gender, planned retirement age, occupation, annual wage, employment benefits, as well as the personal and financial information of the spouse and/or dependent children.The human life value concept deals with human capital, which is a person's income potential.