TEST-1 (REPS)

As per your assessment, Venkatesh needs life insurance on the basis of human life value. How much Life Insurance does he require? (for calculations assume the same Income Tax treatment as it is prevalent now even for future years; the whole annual salary is coming at the end of the year; no existing investments taken into account, all calculations to be done at the end of the current year and the discounting factor is 8% p.a.).

1. Current Net take home annual salary is Rs. 12,00,000
Post tax salary to increase at an average rate of 10% annually
2. Personal expenses include petrol expenses for the community to work and other miscellaneous expenses Rs. 2,00,000 p.a. All expenses keep moving up 7% annually
3. Current age – 40 years and employable up to age 55 years.

ABC Ltd has retirement age as 58 years. Rahim, an employee, at age 32 expected increments of 7% p.a. as per company policy when his annual net earnings were Rs. 5.50 lakhs. After 6 years, he got next cadre and his annual net earnings became Rs. 9 lakhs. The increments in the revised cadre are at 9% p.a. He had purchased a life cover by income replacement method at age 32. What additional cover is required if he expects his investments to yield 10.25% p.a.?

Mohan wants to know what approximate additional life insurance cover he needs such that in case of any eventuality with his life today his family should receive their present monthly expenses net off Laxmi’s contribution as well as adjusted for inflation every month for the remaining expected life of Laxmi. Laxmi contributes Rs. 55,000 p.m. towards household expenses. Assume life insurance claim proceeds are invested by Pooja in risk free instruments.

Additional Info: 1. Current monthly household expenses are Rs. 120,000. 2. Current Age: Mohan – 40 years, Laxmi – 35 years. 3. Life Expectancy: Mohan & Laxmi is 80 years respectancy. 4. Inflation rate – 5% p.a., risk free return – 6% p.a. 5. Mohan already has a life cover of 35 Lakhs.

Manish has a health Insurance Plan with deduction of 100000 Rs. And a coinsurance provision of 80:20.
He has maximum out of pocket limit of 1.5 Lac for a policy year. What will the claim Paid?
If first Claim: – 150000
Second Claim: – 250000
What will be the amount Paid in second claim?.

Ram has taken a property insurance of 2.78 Cr where the current valuation of Building is 3 Cr. With 90% co insurance provision if there is a loss of 1 Cr what shall be the claim amount settled.

Dashrath had bought a home in July2014 where the land was purchased in 50 Lac and construction cost was 1 Cr. During this period the construction cost has increased with 8% and if depreciation (SLM) is charged at the rate of 2% then What sum insured would you recommend to Sarita at the time of her renewal of the policy in July 2021?l

Ajay has two kids Sakshi and Pratham …aged 6 and 8 respectively…Ajay will need 5 lac (Current Price) for a four year degree course starting from age 18. Education expenses are increasing with 8% . Ajay wants to know what amount he should he invest per month till the last requirement with the rate of 11% to achieve this goa.

Combination of traditional protection and savings function of life insurance with the growth potential of equity.

Insurance contract is drafted by company and it is signed by Policy holder who has no power to negotiate or modify the terms and conditions of the said contract. It’s because insurance being a contract of.

The insured pays the premiums without receiving anything in return besides coverage until the policy pays out. In the event of a payout, it can far outweigh the premiums paid. . It’s because insurance being a contract of.

if a solid gold pendent is valued at $2,000 and a value policy was taken at $2000, the value of the item actually declined to $1,000 and its stolen. What is the amount of Claim will be Paid ?

At which type of Insurance Principal of Indemnity does not apply ?.

Which is among is a Pure Risk ?

A deductible is a form of

A policy in which Premiums may even be skipped occasionally as long as the cash value has enough funding to cover the expense and mortality charges to keep the policy in force

All Life Insurance contracts are based on the principle of Utmost Good Faith. In which of the following cases has a material fact been concealed by the prospect?