Concept of Human Life Value (HLV). It is basically about Insurance
To calculate HLV, you have to divide your annual income by the 1 year FD rates.
For example, if your annual income is 10 lakhs, and the FD rate is 7% then HLV = 10 lakhs/7% = 1.4285 crores.
It means that your annual insurance coverage should be nothing less than 1.42 crores.
In layman’s terms, if you “pass away” the insurance company pays you 1.42 cr as life insurance. The nominee then deposits this entire money in a bank Fixed Deposit. The interest the family receives per year will match your annual income.