The document discusses the concept of life need analysis and human life value (HLV) for insurance planning purposes. It defines HLV as the capitalized value of the portion of a person's income dedicated to dependents, accounting for factors like their career and health. Methods for calculating insurance needs based on HLV, income, expenses, assets, liabilities, and education/marriage costs are presented. An example calculation estimates a 30-year-old man's HLV at over $16 million based on his family's monthly costs, loans, medical/education funds, and expected returns.

1. LIFE NEED ANALYSIS AND CONCEPT OF HUMAN LIFE VALUE GROUP MEMBERS AMIT JOSHI ANIL KUMAR AVDHESH RAJPUT NIKHIL GUPTA NILESH KUMAR RAHUL SOODEY RISHAP KUNDRA

12. PARTICULARS VIVEKS AGE Years 30 AGE OF SPOUSE Years 27 LIFE EXPECTANCY OF SPOUSE Years 70 AGE OF CHILD Years 3 CHILDS SHARE OF MONTLY HOUSEOLD EXPENDITURE % 10 CHILD WILL REMAIN DEPENDANT TILL Years 22 Monthly household expenditure Rs 40000 Of the above, how much is spent on Vivek Rs 10000 Expected inflation in household expenditure % 5 Money to be set aside for child's education (in present value terms) Rs 1,000,000 Money to be set aside for child's marriage/other needs (in present value terms) Rs 750,000 Outstanding loans Rs 1,500,000 Other liabilities Rs 500,000 Medical expenditure/emergency fund Rs 500,000 Rate of return on low risk securities/deposits Rs 8 Human Life Value Rs 16,645,475 If the rate of return on low risk securities/deposits is 7 Revised Human Life Value Rs 18,183,996