Human life value is defined as how much insurance is needed to cover what loss?

Human life value refers specifically to the economic value of an individual's future earnings and how those earnings contribute to the financial well-being of dependents or beneficiaries in the event of the insured's death. This concept focuses on the potential loss of income that the family or beneficiaries would face if the insured were no longer alive to provide financial support.

When considering life insurance, the objective is to determine how much coverage is necessary to replace the income that the insured would have earned throughout their working life. This involves estimating the present value of future earnings that would be lost and ensuring that the life insurance policy is sufficient to cover that loss. Therefore, the correct answer adequately captures the essence of why life insurance is often tied to the income-generating capacity of an individual.

In contrast, the other options do not reflect the economic impact of the insured's death on dependents. For instance, loss of personal belongings focuses on tangible assets rather than income, while loss of business capital pertains to a company's finances and not the individual beneficiary's livelihood. Lastly, loss of property refers to physical assets rather than the financial support that one generates through their work, which is essential for their family after their passing.