Which factor is NOT considered in the Human Life Value Approach?

In the Human Life Value Approach, which is a method used to determine the worth of an individual's future income stream for the purpose of life insurance, the focus is primarily on quantifying the economic value of a person's life based on their potential earnings and contributions to their family and beneficiaries.

One of the key considerations in this approach includes the years remaining until retirement, as this helps to estimate how much income the individual would have generated had they lived and worked to retirement age. The future value of current dollars is also a significant factor, as it allows for an understanding of how much those earnings would be worth over time due to inflation and investment growth. Additionally, annual salary and expenses are critical, as they provide insight into the current financial contributions of the person and their overall financial situation.

Family's immediate debts, on the other hand, are not directly considered in this approach. While outstanding debts are relevant to an overall financial picture and could impact the family's immediate needs, the Human Life Value Approach primarily aims to assess the long-term financial impact of an individual's loss based on future earning potential rather than existing liabilities. This focus helps in determining the life insurance coverage amount that reflects the economic contributions the individual would have continued to provide.