Risk Shifting & Human Life Value

---

The concept of Human Life Value (HLV) evaluation was originally designed for the legal system to perform economic loss evaluations for personal injury and wrongful death cases.  It is widely accepted in federal and state courts across the country.  We utilize this process to help our clients and their professional advisors understand the true amount of life insurance necessary to replace an individual’s earning power (tangible and non-tangible) over their lifetime. This concept recognizes the importance of adequate income during retirement.

Collectively, this is known as your Human Life Value.  In the event of bankruptcy or many other factors your HLV would be impacted.   That is, you would lose your HLV.  In many cases, we can apply the same principles to one’s value at retirement.  While the applications differ, conceptually they are based upon the same issues that surround one’s earning potential and HLV over their lifetime.

For decades, the various elements of calculating HLV have been studied by researchers at major universities and techniques for their projection have been developed.  In fact, the Nobel Prize in economics was awarded in 1992 for work in this area.  Generally speaking, your HLV, or your net contribution, is what provides your future standard of living. Today, the courts are virtually unanimous regarding the concept and measurement  of HLV.

The amount of life insurance needed to protect your family fully against economic loss is simply the amount of money they would need to invest such that, with the principal  and interest,  could replace your HLV.  

The KANBAN Center combines the HLV income area with leverage and financial engineering shifting the risk to produce a guaranteed income stream in retirement without subjecting clients to market risk. Our focus is to control downside exposure. We know from historical and statistical actuary probability that this planning methodology guarantees performance. Unlike all other retirement programs, the KANBAN - Financial Engineering Methodology stands alone.

Tags: Wealth Planning KanbanUSA, Wealth Management, Human Life Value, Estate Planning