Ask Us – Banking

What is Human Life Value?

Written by Adhil Shetty | Published:May 28, 2012 1:45 am

What is Human Life Value? My friend says I need to figure it out to have an idea of the kind of insurance amount I should apply for?

—Ramrattan Aggarwal,Pune

HLV or Human Life Value is the probable income of the insured person,or the total income the person is likely to earn during the remaining part of working life. For example,let us say a person aged 24 will work till 60 years of age. If he is expected to earn Rs 90 lakh throughout his life,then his HLV is Rs 90 lakh. This is not the actual income but rather the target that you should try to achieve in order to live a secure life and to take care of your dependents if the need arises.

I have taken up a job that requires frequent travel all over the world and need accessible funds at all times,I am curious to know what exactly a multi-currency card is and how it can help in my situation?

—Sukumar Roy,Kolkata

This is a card that works like plastic money,where you can make purchases with a quick swipe,just as you would with your credit card. You can use it at ATMs and recognised VISA enabled points of sale,is prepaid in nature and can be loaded with dollars,euros or pounds,but can be used in the local currency of any country you visit. It is ideal for someone who travels often,like you do. It is hassle free without having to run around trying to find money exchanges,cashing traveller’s cheques,or carrying wads of cash. It is anytime,anywhere instant access to funds.

How often will my credit report be updated? I am planning to apply for a home loan in a few months and intend to close all my pending credit card payments and wondering if it will be updated in time.

—Archi Mishra,Delhi

Updating the credit report is an ongoing process. Lenders send updated data regarding an account to CIBIL. It also depends on how many credit

accounts an individual has and when there is a change in the credit data. The moment there is a change in the credit data,it will reflect in the credit score. So in your case when your payments are made,the status will be updated. It is better to get a copy of your credit report and see if your status has been updated and confirm that your credit record is in good standing before you apply for your loan. If there is any discrepancy,you need to approach your bank and request them to notify CIBIL,you can then address the issue directly with CIBIL as well. Their website has a provision to communicate any issues you might have.

—The expert is CEO,Bankbazaar.com

For your personal finance queries please email at expressmoney@expressindia.com

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