What’s Your Life Worth? Understanding Human Life Value and the Main Purpose of Life Insurance
- Keston Hackett
- Aug 6
- 4 min read
If someone depends on your income today, your partner, your child, or your parent, what would happen to them tomorrow if you were no longer here?
This is not meant to spark fear. It is meant to encourage preparation. Because there is a way to make sure your loved ones are protected, and your legacy continues even in your absence. That solution is life insurance, but not in the limited way most people think of it.
You Are Your Most Valuable Asset
Many people insure their car, their home, and even their phone. But very few stop to think: what about the income that pays for all of it?
Your ability to earn is your most powerful asset. It is what supports your family, pays your bills, builds your dreams, and keeps everything moving forward. That earning capacity has a value, and it can be protected.
This concept is known as Human Life Value. It represents the financial worth of your life in terms of the income you generate and the people who rely on it.
When Income Stops, the Bills Don’t
Losing a loved one is already difficult emotionally. But when that person was also the main provider, the situation becomes even harder financially. Without the right planning, families often find themselves struggling to:
Cover monthly bills and rent or mortgage
Pay off loans and credit card debt
Afford school fees or university costs
Maintain their standard of living
Handle medical bills or final expenses
This kind of financial stress adds pressure at the very moment your family needs peace. But the truth is, it does not have to be this way.
Why Many People Are Severely Underinsured
Here is the hard truth: many people are underinsured. They carry just enough coverage to meet a mortgage requirement or tick a box, without ever asking whether that amount truly reflects their economic value over a full working life.
Think about it. If you plan to work another 20 or 30 years, earning an income every month, that's millions of dollars in potential value. So why only leave behind $250,000, $500,000 or even $1,000,000?
Insurance should not just be about the bare minimum. It should reflect the maximum potential of what your life is financially worth, and that value should go to the people you love or causes you care about.
If you say you love your family, then your insurance should back that up. It should be enough to say: "If I had lived out my full life, this is the value I would have created, and I have made sure you still receive it."
This is about more than just protecting today. It is about maximising your lifetime financial contribution and ensuring your loved ones get the full benefit of your life’s worth, even if it ends unexpectedly.
Life Insurance Isn’t for You. It’s for Them
The real purpose of life insurance is not just about paying for a funeral. It is about making sure your family can carry on. It provides them with a financial cushion so they can:
Replace your lost income
Keep the lights on and food on the table
Preserve their goals and long-term plans
Avoid being forced to sell property or make hard sacrifices
It is a gift that says, “Even if I am not here, you will be okay.”
And one of the biggest benefits? The money your family receives from a life insurance policy is typically tax-free, and comes without the delays that other estate processes often involve.
How Much Life Insurance Do You Actually Need?
This is where a lot of people guess, and guess wrong. The right way to calculate how much life insurance you need is through a professional needs analysis and process.
This means we sit together and look at:
Your current income
Your debts and obligations
Your children’s needs
Your family's monthly expenses
Future goals like education or homeownership, etc.
From there, we build a clear plan that ensures your family’s financial life can continue uninterrupted if something happens to you
Why You Should Take Action Now
Here is the reality. Life insurance gets more expensive as you get older. And if your health changes, your options can become limited or unavailable altogether.
The best time to put protection in place is when you are young, healthy, and earning consistently. You lock in better rates, more flexible choices, and greater peace of mind.
Waiting until later often results in higher costs and more complications.
Your Family Deserves Security, Not Negative Surprises
We do not plan to leave our families behind. But we do plan for our children’s education, family vacations, our businesses, and our future homes. Is it not time we also plan for the unexpected?
Life insurance is one of the most thoughtful, responsible, and loving financial decisions you can make.
It says: "No matter what happens, I have made sure you are taken care of."
Let’s Discover Your Human Life Value
If you are ready to take the next step, start by finding out what your life is worth in real terms. I will guide you through my process so you can see exactly what level of protection is right for your situation.
Click the link below to Book A Life Strategy Session with me today, at no cost to you.
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