Question

What is Human Life Value (HLV) in the context of life insurance?

a.

HLV represents the total income earned by an individual throughout their life.

b.

HLV is the amount of money paid by an individual to purchase a life insurance policy.

c.

HLV measures the economic loss a family would suffer if the wage earner were to die prematurely.

d.

HLV is the present value of a person's past earnings.

Posted under IC38 Life Insurance Agent Exam

Answer: (c).HLV measures the economic loss a family would suffer if the wage earner were to die prematurely. Explanation:Human Life Value (HLV) measures the economic loss a family would suffer if the wage earner were to die prematurely. It is based on an individual's expected net future earnings, taking into account their annual income, expenses, and prevailing interest rates.

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Q. What is Human Life Value (HLV) in the context of life insurance?
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