--- title: How Much Term Life Insurance Do I Need? description: Try EGGRS free term life insurance calculators to estimate Human Life Value and Capitalization of Earnings to determine how much coverage you need. image: https://www.eggrs.com/hubfs/Blog%20Feature%20Images/How%20Much%20Term%20Life%20Insurance%20Do%20I%20Need%20-%20Blog%20Feature%20Images%20-%20EGGRS%20%281%29.png --- 3 min read # How Much Term Life Insurance Do I Need? [![Picture of EGGRS](https://www.eggrs.com/hubfs/EGGRS%20Logo/EGGRS%20Icon%20Logo.png) EGGRS ](https://www.eggrs.com/blog/author/eggrs) : Jan 19, 2023 10:24:27 AM [Term Life Insurance](https://www.eggrs.com/blog/tag/term-life-insurance) [Life Insurance](https://www.eggrs.com/blog/tag/life-insurance) [Calculators](https://www.eggrs.com/blog/tag/calculators) [Capitalization of Earnings](https://www.eggrs.com/blog/tag/capitalization-of-earnings) [Human Life Value](https://www.eggrs.com/blog/tag/human-life-value) ![How Much Term Life Insurance Do I Need?](https://www.eggrs.com/hubfs/Blog%20Feature%20Images/How%20Much%20Term%20Life%20Insurance%20Do%20I%20Need%20-%20Blog%20Feature%20Images%20-%20EGGRS%20%281%29.png) If you’re considering purchasing a [term life insurance policy](https://www.eggrs.com/blog/term-life-insurance-quotes-online), you likely have a lot of questions about how much [coverage](https://blog.kastnerinsurance.com/what-is-the-difference-between-dp1-dp2-dp3-coverage) is right for you and your [family](https://www.welcome-co.com/blog/the-founders-of-welcome-co) before you [request an insurance quote](https://www.eggrs.com/blog/how-to-request-an-insurance-quote-from-eggrs). Determining the right amount of [coverage](https://blog.kastnerinsurance.com/what-is-the-difference-between-dp1-dp2-dp3-coverage) that works for your budget and provides adequate [insurance](https://blog.syomortgage.com/hud-reduces-fha-mortgage-rates) protection can be intimidating, but is essential when determining the amount of coverage that's right for you and [your family](https://www.eggrs.com/blog/if-you-have-a-family-then-you-need-life-insurance) (if you're in the market for a [new home](https://www.syomortgage.com/), see the [benefits to shopping your own mortgage](https://blog.syomortgage.com/what-are-the-benefits-of-shopping-your-own-mortgage)). This blog post will provide insight into how much [term life insurance](https://www.eggrs.com/) you need and how to approach (and feel confident) making an informed decision about [insuring yourself](https://www.eggrs.com/blog/what-kind-of-life-insurance-do-i-need) and/or loved ones for the future. 1. [Human Life Value](https://www.eggrs.com/blog/how-much-term-life-insurance-do-i-need#human-life-value) 2. [Capitalization of Earnings](https://www.eggrs.com/blog/how-much-term-life-insurance-do-i-need#capitalization-of-earnings) [![What is term life insurance blog | EGGRS](https://hubspot-no-cache-na2-prod.s3.amazonaws.com/cta/default/22598335/8b4b2de8-cc2c-4f07-b1a2-b20c16d4d841.png)](https://hubspot-cta-redirect-na2-prod.s3.amazonaws.com/cta/redirect/22598335/8b4b2de8-cc2c-4f07-b1a2-b20c16d4d841) [![Life Insurance Calculators | EGGRS](https://hubspot-no-cache-na2-prod.s3.amazonaws.com/cta/default/22598335/bc90d708-3d32-43f0-a5a6-698ef71ca71a.png)](https://hubspot-cta-redirect-na2-prod.s3.amazonaws.com/cta/redirect/22598335/bc90d708-3d32-43f0-a5a6-698ef71ca71a) ## What is Human Life Value? The concept of [Human Life Value (HLV)](https://www.eggrs.com/calculators/human-life-value) was originated by Dr. Solomon S. Huebner, making HLV the standard method of [calculating insurance](https://www.eggrs.com/calculators) value and need. The Human Life Value approach (HLV), or Ideal Life Cover, is the total value that represents the current and future amount associated with day-to-day expenses, long term liabilities, and any investments you may have. When calculating how much [term life insurance](https://www.eggrs.com/term-life-insurance) you need, knowing your HLV is an invaluable way to ensure your dependents have enough money required for the future, in case you die. ### Why is Human Life Value important? HLV puts a value on the important question: what is the price of your life? When deciding on life [insurance](https://blog.kastnerinsurance.com/6-signs-that-you-are-working-with-a-high-performance-insurance-agent-), it is important to measure your economic worth. [Human Life Value](https://www.eggrs.com/calculators/human-life-value) is the dollar value of your economic worth in terms of what you create for the people who depend on you. This is calculated, so that when you die, an amount equivalent to the HLV should be available so that the people dependent on you can lead their life properly. ### How to Calculate Human Life Value There are seven main topics that are taken into account to calculate your HLV, which include: 1. Age 2. Gender 3. Occupation 4. Target retirement age 5. Annual income 6. [Employment benefits](https://www.eggrs.com/blog/group-term-insurance-might-not-cover-all-of-your-compensation) 7. Financial information regarding your spouse and children Looking for [term life insurance cost calculator](https://www.eggrs.com/calculators)? Try our [Human Life Value Calculator](https://www.eggrs.com/calculators/human-life-value) below! [![Human Life Value Calculator | EGGRS Term Life Insurance](https://hubspot-no-cache-na2-prod.s3.amazonaws.com/cta/default/22598335/5afd572f-fbdd-4e34-a85d-04c9aaea465e.png)](https://hubspot-cta-redirect-na2-prod.s3.amazonaws.com/cta/redirect/22598335/5afd572f-fbdd-4e34-a85d-04c9aaea465e) ## What is Capitalization of Earnings? Capitalized earnings is a methodology in the income valuation method, which** **converts an income stream into an indicator of market value. [Capitalization of earnings](https://www.eggrs.com/calculators/capitalized-earnings-approach) is used to determine the value of an organization or [business](https://www.vested.marketing/learning-center/how-to-effectively-leverage-relationships-in-business) by calculating the worth of its anticipated profits based on current earnings and expected future performance. ### Why is Capitalization of Earnings important? Calculating the Capitalization of earnings helps investors determine the potential risks and return of purchasing a company. This concept can also be applied to individual subsidiaries, product lines, products, and work centers to determine their value for further investment purposes, such as [term life insurance](https://www.eggrs.com/term-life-insurance). ### How to Calculate Capitalization of Earnings To calculate earnings by the [Capitalization of earnings approach](https://www.eggrs.com/calculators/capitalized-earnings-approach), the company takes future earnings and divides them by an expected Capitalization rate. The formula is Net Present Value (NPV) divided by Capitalization rate. The Capitalization rate is the rate of return an investor can expect on its investment. Higher risk companies, for example [specialty pharmacies](https://www.senderrarx.com/) and [Ketamine clinics](https://blog.neuromendcenter.com/is-ketamine-treatment-covered-by-health-insurance), and companies relying on [equipment](https://www.12eleven.com/news/what-are-the-different-types-of-oil-and-gas-separators), like [engineering](https://www.usdredge.com/learn/9-ways-technology-is-shifting-the-civil-engineering-industry), that depreciates over time have higher Capitalization rates. Learn more about [term insurance for business owners](https://www.eggrs.com/blog/term-insurance-for-business-owners-the-ultimate-guide). #### Understanding Capitalization of Earnings The results of this calculation must be understood in light of the limitations of this method. The [Capitalization of earnings approach](https://www.eggrs.com/calculators/capitalized-earnings-approach) requires research and data about the [business](https://www.eggrs.com/blog/life-insurance-for-business-owners). Depending on the nature of the [business](https://info.stonewallco.com/blog/7-tips-starting-engineering-firm), generalizations and assumptions might be required when calculating the value. The more structured the business is, the less impact any assumptions and generalizations my have. Startup companies, like our friends at [Vested Marketing](https://www.vested.marketing/), often lack large data sets for their [financial](https://blog.syomortgage.com/why-wealthy-people-refinance-their-mortgages) results. For these reasons, assumptions used in generating a figure for Capitalized earnings for a startup can have a significant impact of the calculation. Looking for [term life insurance cost calculator](https://www.eggrs.com/calculators)? This calculator uses an investment return that guarantees enough earnings each year, which makes this form much more efficient than others. Try our [Capitalization of Earnings Calculator](https://www.eggrs.com/calculators/capitalized-earnings-approach) below! [![Capitalization of Earnings Calculator | EGGRS Term Life Insurance](https://hubspot-no-cache-na2-prod.s3.amazonaws.com/cta/default/22598335/47a604eb-4fe2-4383-9d32-db3f9beed600.png)](https://hubspot-cta-redirect-na2-prod.s3.amazonaws.com/cta/redirect/22598335/47a604eb-4fe2-4383-9d32-db3f9beed600)   ## Term Life Insurance Calculators When searching for a [term life insurance policy](https://www.eggrs.com/term-life-insurance), it's important to understand the amount of coverage you need for [your beneficiaries](https://www.eggrs.com/blog/how-to-choose-a-beneficiary-for-your-term-insurance-policy). [EGGRS](https://www.eggrs.com/) [Human Life Value Calculator](https://www.eggrs.com/calculators/human-life-value) and [Capitalization of Earnings Calculator](https://www.eggrs.com/calculators/capitalized-earnings-approach) are the perfect tools in assessing your needs. Try our free [term life insurance premium calculator](https://www.eggrs.com/calculators) today! ### Interested in Term Life Insurance? [Our process](https://www.eggrs.com/our-process) is easy and hassle free. To [request a quote for term life insurance](https://www.eggrs.com/request-a-quote), click below to fill out an application! Interested in [convertible term life insurance](https://www.eggrs.com/blog/converting-a-term-life-insurance-policy)? [Click here!](https://www.eggrs.com/blog/converting-a-term-life-insurance-policy) Learn more about [term vs whole life insurance](https://www.eggrs.com/blog/term-vs-whole-life-insurance) here! What are insurance rates looking like in 2023? [View 2023 rates here](https://www.eggrs.com/blog/term-life-insurance-rates-in-2023)! [![New call-to-action](https://hubspot-no-cache-na2-prod.s3.amazonaws.com/cta/default/22598335/d9fefde3-ad25-43e8-88f4-c0474ef43bf1.png)](https://hubspot-cta-redirect-na2-prod.s3.amazonaws.com/cta/redirect/22598335/d9fefde3-ad25-43e8-88f4-c0474ef43bf1) --- [About EGGRS](https://www.eggrs.com/our-purpose) [![EGGRS Full Logo](https://www.eggrs.com/hs-fs/hubfs/EGGRS%20Logo/EGGRS%20Full%20Logo.png?width=100&height=100&name=EGGRS%20Full%20Logo.png)](https://www.eggrs.com)[EGGRS](https://www.eggrs.com/) understands the importance of preparing for unexpected changes while keeping your busy schedule in mind, so we have created an efficient [process](https://www.eggrs.com/our-process) that anyone can follow. Our ideal, uncomplicated process allows you to do everything online, including [requesting life insurance coverage](https://www.eggrs.com/request-a-quote) and receiving it within 20-30 business days. Our services include [term life insurance](https://www.eggrs.com/), [risk differentiating underwriting](https://www.eggrs.com/risk-differentiation-underwriting), [request a quote](https://www.eggrs.com/request-a-quote), and [free calculators](https://www.eggrs.com/calculators). [Contact EGGRS](https://www.eggrs.com/contact) for more information! - [Tweet](https://twitter.com/share) [![Term Life Insurance Rates in 2023](https://www.eggrs.com/hubfs/Blog%20Feature%20Images/Term%20Life%20Insurance%20Rates%202023%20-%20Blog%20Feature%20Images%20-%20EGGRS.png) ](https://www.eggrs.com/blog/term-life-insurance-rates-in-2023) #### [Term Life Insurance Rates in 2023](https://www.eggrs.com/blog/term-life-insurance-rates-in-2023) ![Picture of EGGRS](https://www.eggrs.com/hs-fs/hubfs/EGGRS%20Logo/EGGRS%20Icon%20Logo.png?width=30&name=EGGRS%20Icon%20Logo.png) [EGGRS](https://www.eggrs.com/blog/author/eggrs): Jun 27, 2023 1:08:31 PM Are you considering getting term life insurance to secure your family's future? Not only is it a highly effective solution, but it's also... [Term Life Insurance](https://www.eggrs.com/blog/tag/term-life-insurance) [Life Insurance](https://www.eggrs.com/blog/tag/life-insurance) [Request a Quote](https://www.eggrs.com/blog/tag/request-a-quote) [Rates](https://www.eggrs.com/blog/tag/rates) [Read More](https://www.eggrs.com/blog/term-life-insurance-rates-in-2023) [![What kind of life insurance do I need?](https://www.eggrs.com/hubfs/Blog%20Feature%20Images/What%20kind%20of%20insurance%20do%20I%20need%3F%20Blog%20Feature%20Images%20-%20EGGRS.png) ](https://www.eggrs.com/blog/what-kind-of-life-insurance-do-i-need) #### [What kind of life insurance do I need?](https://www.eggrs.com/blog/what-kind-of-life-insurance-do-i-need) ![Picture of EGGRS](https://www.eggrs.com/hs-fs/hubfs/EGGRS%20Logo/EGGRS%20Icon%20Logo.png?width=30&name=EGGRS%20Icon%20Logo.png) [EGGRS](https://www.eggrs.com/blog/author/eggrs): May 30, 2023 11:23:39 AM It's best to consider the financial dependencies and individual need of your loved ones when shopping for life insurance. Why? Your life insurance... [Term Life Insurance](https://www.eggrs.com/blog/tag/term-life-insurance) [Life Insurance](https://www.eggrs.com/blog/tag/life-insurance) [Read More](https://www.eggrs.com/blog/what-kind-of-life-insurance-do-i-need) [![Term Life Insurance Quotes Online](https://www.eggrs.com/hubfs/Blog%20Feature%20Images/Term%20Life%20Insurance%20Quotes%20Online%20-%20Blog%20Feature%20Images%20-%20EGGRS.gif) ](https://www.eggrs.com/blog/term-life-insurance-quotes-online) #### [Term Life Insurance Quotes Online](https://www.eggrs.com/blog/term-life-insurance-quotes-online) ![Picture of EGGRS](https://www.eggrs.com/hs-fs/hubfs/EGGRS%20Logo/EGGRS%20Icon%20Logo.png?width=30&name=EGGRS%20Icon%20Logo.png) [EGGRS](https://www.eggrs.com/blog/author/eggrs): May 12, 2023 9:29:32 AM If you are a young person, you probably don’t spend a lot of time thinking about life insurance. After all, you are young and healthy, and you have... [Term Life Insurance](https://www.eggrs.com/blog/tag/term-life-insurance) [Life Insurance](https://www.eggrs.com/blog/tag/life-insurance) [Request a Quote](https://www.eggrs.com/blog/tag/request-a-quote) [Read More](https://www.eggrs.com/blog/term-life-insurance-quotes-online) ```json { "@context" : "https://schema.org", "@type" : "BlogPosting", "author" : { "@type" : "Person", "name" : "EGGRS", "url" : "https://www.eggrs.com/blog/author/eggrs" }, "dateModified" : "2023-06-27T17:27:24.194Z", "datePublished" : "2023-01-19T15:24:27.000Z", "headline" : "How Much Term Life Insurance Do I Need?", "image" : [ "https://www.eggrs.com/hubfs/Blog%20Feature%20Images/How%20Much%20Term%20Life%20Insurance%20Do%20I%20Need%20-%20Blog%20Feature%20Images%20-%20EGGRS%20%281%29.png" ], "mainEntityOfPage" : { "@id" : "https://www.eggrs.com/blog/how-much-term-life-insurance-do-i-need", "@type" : "WebPage" }, "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "https://www.eggrs.com/hubfs/EGGRS%20Logo/EGGRS%20Full%20Logo.png" }, "name" : "EGGRS, LLC" } } ``` ```json { "@context" : "https://schema.org", "@type" : "NewsArticle", "author" : { "@type" : "Organization", "name" : "EGGRS", "url" : "https://www.eggrs.com" }, "dateModified" : "2023-01-19", "datePublished" : "2023-01-19", "description" : "Try EGGRS free term life insurance calculators to estimate Human Life Value and Capitalization of Earnings to determine how much coverage you need.", "headline" : "How Much Term Life Insurance Do I Need?", "image" : "https://cdn2.hubspot.net/hubfs/22598335/Blog%20Feature%20Images/How%20Much%20Term%20Life%20Insurance%20Do%20I%20Need%20-%20Blog%20Feature%20Images%20-%20EGGRS%20%281%29.png", "mainEntityOfPage" : { "@id" : "https://www.eggrs.com/blog/how-much-term-life-insurance-do-i-need?", "@type" : "WebPage" }, "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "https://cdn2.hubspot.net/hub/22598335/hubfs/EGGRS%20Logo/EGGRS%20Icon%20Logo.png?width=70&name=EGGRS%20Icon%20Logo.png" }, "name" : "EGGRS" } } ```