The value of Human Life

Can any one put a price on the life of a human being?

Every human being in this world is precious and invaluable to him and his family.Trying to to quantify the value of human life, may seem ridiculous.

But it is the first work of an underwriter to assess a human life in terms of money, in order to limit the amount of insurance that can be given to one person. Every person on this earth can assure itself a maximum possible, and that is the job of the insurance company to cut a line that limits, and even more important is the safeguarding of sub-problems insurance, which are countries like America now face.

Concept of Life Value:

Making the assumption that the person buys a car from the insurance Rs.100000 / - (2500 $) for a car with a value of Rs.800000 / - ($ 20000). The car responds to an accident and was totally damaged. Even if the insurance company full honors his request, he will receive only Rs.100000 ($ 2500). With this amount will he be able to buy the same car he had before the accident? The answer to this question is "no", because it did not ensure his car for its gross value. In simple terms, the car was not insured for what it was worth, but under-insured and to the "principle of compensation."

Under insurance sometimes leaves no trace of insurance when it fails to serve the purpose for which it was made. In the same way, the insurance on human life must take into account that the financial loss suffered by the family in the absence of that person, and that should be the amount of insurance. Instead of buying life insurance policies as a means of reducing the tax burden, pensions, to venture into the stock markets, small-scale, etc., it would make sense, if the insurance is sought from the angle of economic replacement value of human life.


Basically, human life is based on the value of the individual's earning capacity. This is the amount that the family is going to lose in his absence. By applying what we call human life as a concept of value, the amount of financial support given by the person of his family is determined.