2. Every object has its own economic value :- may be a house may be a car may be a T.V. may be any other goods. In a materialistic environment one often thinks of the value of tangible assets. But, surprisingly, many tend to over look that one’s own life is a great economic value to one’s dependents. The head of the family is responsible for meeting the various social and financial needs of his wife, son, daughter and other dependents.

3. The bread winner is the nucleus around whom the dependents weave their dreams for a sound, secure and bright future. ******** Son expects a good education and sound start-in-life. ******** Daughter aspires for a good academic achievements and hopes to marry her prince charming befittingly. ******** Wife dreams of owing a house. These are in addition to his primary responsibility the basic necessities of the family. The net value of all these contributions in other words is the HUMAN LIFE VALUE

4. As long as the head of the family is alive and active, he provides the necessary financial support. If the bread winner unexpectedly wilts away, what happens to the hopes of his dependents for building a better and brighter future. Should they be caught in the whirlpool of sorrow and tears ? Should their aspirations for a rosy future disintegrate ? No, says the life insurance and it plays a vital role to continue the economic potential of the bread winner.

5. This view is gradually changing due to the economic conditions of the society. The human life value takes into account the earnings of a individual, earmarked for supporting his dependents and the future economic potential required for a long and financial sound foundation for the young members in the family. The agent should plan life insurance of his client in such a way that at least policy holder’s present monthly income is available to the family in case his family is deprived of his income due to any unforeseen event.

6. Agent should plan life insurance needs of his client in such a way that he creates an estate which will provide the average income needed by the family to maintain the standard of living that they were accustomed to, income to finance the education of children and, above all, the finance that may be required to clear the mortgages on properties and any other liabilities incurred by the client during the course of discharging his responsibilities. Life Insurance is the only means by which one can ensure total protection at one’s family in case the family gets orphaned due to untimely death of the breadwinner. We must give a serious thoughts to Human Life Value Concept while selling the Insurance.

7. Human Life Value can be defined as the capitalized value of the net future earnings of an individual after taking into account appropriate costs for one’s self-maintenance. Economic value is based training and education, character, health and above all his ability to work hard and his ambition based on self-image as successful man. All these years, our agents have been selling life tax benefits and not as insurance for life. We generally talk of our client of income tax benefits, high returns, reinvestments, Bonus rates, interest rates and so on but never about the basic security.

8. We have to shift our focus from tax-benefits to Human Life Value. How the Human Life Value Concept helps ? 1.When a prospect will come to know his income potential on numeric data, he will try to purchase life insurance to that extent for protecting his dependents. 2.He will try to reduce his personal expenses and hence tray ti insure to extent of such increased Human Life Value due to deduction in personal expenses. 3.The Bread-winner comes to know the increasing quantum of his Human Life Value and he continues his efforts to tailor his savings and insurance programmes accordingly. 4.Dependents of the Bread-winner also come to understand Human Life Value of his life and they start realizing the importance of the role of the Bread-winner for their welfare. It draws the attention and lays the foundation for prudent and sound financial planning for leading a successful economic life.l

9. Age – 30 yrs Balance service – 30 yrs Ann income – 70,000 Personal Expenses – 15,000 Insurance Premium, tax etc. – 5,000 Assuming a Discount rate of 8 % p.a. Period Factor 10 Years 6.7101 11 years 7.1390 12 years 7.5361 13 years 7.9038 14 years 8.2442 15 years 8.5595 16 years 8.8514 17 years 9.1216 18 years 9.3719 19 years 9.6036 20 years 9.8181 30 years 11.2578

10. Annual Income - 70,000 Remaining service - 30 Years Total expenses - 20,000 Net Annual Income – 50,000 Tot inc. for 30 Yrs - 15lacks Assuming 8 % discount for 30 years Ind. worth = 30 yrs X 11.2578 ) = 5,62,890 Economic Value of individual is 5,62,890 for which he should be given risk coverage so that the financial support for 30 yrs can be given to his dependents in the event of his untimely death.

11. 1.Policy lapsation will decrease substantially. 2.Rebate will slowly die its natural death. 3.The Right Types of plans will be sold. 4.Increase in Renewal income, Commission and Surplus Fund. 5.New Business would increase considerably. 6.Brightens the Image of LIC Agents.

12. The need of the hour, is to switch over to HUMAN LIFE VALUE BASED SELLING