Protecting Your Earnings: What is Human Life Value?

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Protecting your earnings is one of the chief reasons to buy both life and disability insurance. In fact, protecting your potential earnings is one of the cornerstones of financial planning and is in fact foundational in effective risk management. Anyone earning any kind of income, especially high income earners, should consider protecting their income earnings ability through life and disability insurance.

What is human life value?

Human life value is an economic concept that values your lifetime earnings ability to determine your economic value. For example, if your retirement age is 65, and you are age 40 earning $100,000 a year, you will earn $2,500,000 over the next 25 years. So your human life value to retirement is at least $2,500,000 assuming there are no cost of living increases and no bonuses. However, the human life value also assumes that you maintain your health and ability to work and earn a living.

Two potential threats to you realizing your true human life value are obviously death and disability. If you stop and think about how much income you will earn over your lifetime it really accentuates the need for life and disability insurance. In the example above, if you are age 40 earning $100,000 a year, you should strongly consider protecting your human life value of $2,500,000. Now that does not mean you should just go out and buy $2.5M of life insurance. You have to factor into the equation your specific goals and objectives, debts, retirement assets, savings accumulation, real estate income and potential inheritances, etc., but it certainly make sense to protect your human life value. For information, see “How Much Life Insurance Do I need?”

Along with the consideration for life insurance, disability income insurance is crucial to protecting your human life value. In fact, at most ages, a disabling injury or sickness is more likely to occur than death. Ask yourself this question, “how will I pay my mortgage if I were disabled?” If you do not have a plan to protect your human life value from the potential threat of disability, you have a significant foundational risk management problem that should be addressed immediately. For more information click here for a disability insurance quote.


The economic concept of human life value is simple: multiply your current income by your remaining working years to retirement. This is your true economic worth and for most people it is a considerable amount of money. Sadly, many never stop to consider their human life value and therefore do not have an effective plan for the threats to realizing their human life value potential. Life and disability insurance is the easiest way to guarantee that you can reach your human life value. Click here for an instant life insurance quote or a custom disability insurance quote or call MEG Financial today at (877) 583-3955.

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About Term Land

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