What was the purpose of the human life value approach?

The human life value approach is specifically designed to estimate the economic value that an individual contributes to their family or dependents, particularly in the event of their untimely death. This method calculates the potential income that the deceased would have earned over their working life, taking into account factors such as age, occupation, and expected salary growth, in order to establish the financial impact of their loss on the family.

By focusing on this aspect, the human life value approach aids in determining the appropriate amount of life insurance coverage needed to replace the lost income and provide financial security for dependents. This approach underscores the importance of income generation in evaluating insurance needs, rather than simply assessing risks or property values, which are less relevant in this context. The emphasis here is on safeguarding the family's future financial stability by assessing the projected earnings of the income provider who has passed away.