PAID UP VALUE,IRR,HLV QUESTIONS

Calculate surrender value:-
SA:-50,000
Term:- 30 yrs, Last Premium Paid (Half yearly) :15.12.2000.DOC:- 15.06.1986
BONUS as on 24.06.2000 is @ rs 750 per thousand OF SUM ASSURED
SV factor 52.3%

Calculate paid up value
SA:-1 lac, plan :- quarterly , term:- 20 yrs, DOC:-20.02.1995
LPP:-20.02.2000,Mode:- Quarterly . DOB:-20.02.1950

Sum assured:- 1 lac, doc:- 28.03.1985, LPP:-28.03.1999
Term:-30 yrs Bonus:- 800 per thousand Mode:-Qrtly
date of calculation:- 28.06.1999, S.V.Factor:- 72% for 14 yrs, 78% for 15 yrs, 80% for 16 yrs

Calculate paid up value
s.a.1,00,000 Term:- 25 yrs LUP:- 01.02.2002
DOC:- 01.08.1998, payment Half yearly

Laxman wants to calculate the requirement of additional Life insurance needed. He want to cover inflation adjusted expenses till Janke’s( wife) age of 50 and after that 75% of the expenses till her life.
Life expectancy of wife is 75 years
Life expectancy of self is 80 years
Current Age wife: 30
Current Age self-35
Inflation 7%
Discount Rate 10%
Existing insurance: 50 Lac
Current Monthly Expenses: 35000 Per Month

Policy A: 50 Lac sum assured with a premium paying term of 25 years and the annual premium is 7500 Per annum
Policy B: 50 Lac Sum Assured with a Premium Paying term of 25 years and an annual premium of 8600 with the return of purchase price
If the discount rate is 8.5% which option should one choose?

Sakshi is 32 years old. Her monthly expense is 50000 P.M. She needs insurance for an inflation-adjusted annuity until her expected life of 80 years. Apart from it, she needs 25 lac Rs for her son’s education after 15 years. She needs 150000 Rs per annum ( current value) inflation-adjusted for six years starting from 20 years from now. She wants to cover everything that would be her cover. Inflation rate is 6% and the discount rate is 9%.

Rakesh, currently 25 wants a life insurance on the basis of his income which is 1500000 out of which he accounts 20% for his personal expenses and taxes. His wife and kids policies amount to 100000. His retirement age is 65, What should be his cover if proceeds of cover is invested at 7.5% and the increment in the salary is considered at 8%.

Mr. Uday has given his personal details as follows:-
Current Age:-30 yrs plans to retire at age 65, Job profile Senior manager in telco ltd with an annual salary of rs 10,00,000. His annual cash outflows:-
professional tax:- 5,000
Income tax:- 1,95,000
Self maintenance:- 1,00,000 p.a.a
LI premium(self) Rs. 20,000 having a sum assured of Rs 20 lacs
LI premium for sulekha(wife) rs 13000 sum assured 5 lacs
Life insurance premium for Aditya(Son) rs 7000 having sum assured rs 2 lacs. Assuming the rate of interest for capitalization of future income at 10% as a financial planner recommends the insurance cover:

Shri Sanket is an assistant manager in a private firm. His present age is 35 years and he will retire at age 60. His present gross salary per annum is rs 2,40,000. Life insurance premium for self is rs 15,000 p.a. and for children and wife’s policies come to rs 5000 p.a.Income tax amount to rs 35,000. Reasonable self maintenance expenses including sports stand to rs 30000.calculated HLV .Assumed discount rate at 8%

An executive purchased an annuity for a lump sum Rs. 85 lakh when he was of 53 years and had in dependents a non-working spouse of age 48 and a son of age 25. On reaching age 60, he expects at least one, himself or his spouse, to survive till 80 years and contracts an immediate life annuity with return of purchase price at Rs. 10.15 lakh p.a. vested against the purchase price of Rs. 1.61 crore. What return is expected from the vesting date?

A family’s monthly expenditure is Rs. 40,000. The earner accounts for 15% of the expense. He wants to cover his family’s inflation-adjusted expenses for the next 40 years considering average inflation at 5.5% p.a. and the investment return at 7.5% p.a. The approximate life insurance needed is ______

A company has a retirement age of 58 years. An employee at age 35 expected increments of 7% p.a. as per company policy when his annual net earnings were Rs. 6 lakh. After 5 years, he got the next cadre and his annual net earnings became Rs. 9 lakh. The increments in the revised cadre are at 9% p.a. He had purchased a life cover by income replacement method at age 35. What additional cover is required if he expects his investments to yield 9.5% p.a.

A Money back policy of 15 years having a sum assured of 500000 having a premium of Rs. 40000. The policy gives Rs. 70 per thousand reversionary bonus and 200 per thousand as a terminal bonus. After every five years, 25% of the money back is given to the policyholder. Standalone 5 lac Rs insurance is available in Rs. 8000. Kindly calculate the IRR of the policy.

Gurpreet wants to know approx. Maturity value and return on investment of his Endowment Insurance plan. Assume Company has declared a reversionary bonus of Rs.55/1000 SA Per year for the first five years, Rs.60/1000 SA per year for the next five years, Rs.50/1000 for the remaining term, and also declared a terminal bonus of Rs.325/1000 SA. assume stand-alone policy for the sum assured cost approx. 20000/- in Gurpreet age. Sum assured:30 Lac. Premium annual: 175527.

In the money-back insurance policy of Sahanubhuti she is expected to get on surviving the policy a reversionary bonus of Rs. 48 per thousand plus a royalty of 12% of the sum assured. What would be the return on her surviving the policy? Sum Assured of Rs. 5 lakh, Term of 15 years, Annual Premium of Rs. 45,565, Purchased on 18th September 2012, terms of money back: 15% of SA at the end of 3rd/6th/9th & 12th year and 40% at maturity. (Total premium is being considered for calculating IRR).