INSURANCE QUESTIONS

Q. 26 A client has the need to provide for his child's college education costs. He envisages that four annual payments of Rs 20,000/-, in current money terms, would be needed beginning 15 years from now. Assuming level of inflation rate at 5% per annum and that the fund earns 8% per annum returns throughout; calculate the present value to be placed on this liability when carrying out a needs analysis for this client. (Round of your answer to the nearest '000') 4 A Rs. 49,000/B Rs. 50,000/- CORRECT C Rs. 24,000/D Rs. 23,000/Q. 12Sajid has a pension policy details of which are given as under; 28 year PPT; Non Participating policy; Yearly Premium Rs. 10,000; guaranteed returns of Rs. 50/1,000 SA; SA during accumulation phase Rs. 3 Lakh; No riders. What will be the value of the accumulated corpus just on completion of the premium paying term? A) Rs. 5.58 Lakh B) Rs. 4.80 Lakh C) Rs. 4.20 Lakh CORRECT D) Rs. 7.20 Lakh Q. 14 Ram had taken an endowment plan for 35 years on 20/05/1990 for a sum assured of Rs. 2.5 lakh, wherein premium Payable is Rs. 2,000 quarterly. He dies on 18/08/2006. Quarterly premium due in August 2006 was paid on 06/08/2006. Bonus vested: Rs. 1, 44,000, Interim Bonus declared after valuation on 31/03/2005 is Rs. 68 per Thousand. What is the amount of claim payable under the policy? A) Rs. 4, 11,000 B) Rs. 4, 07,000 CORRECT C) Rs. 3, 57,600 D) Rs. 3, 54,600