Calculation of Insurance

1. Lisa is 48 years old. Her annual premium (P) is $1,100 for a $100,000 whole
life policy. The cash surrender value of her policy at the end of the most
recent completed policy year was $4,400; the previous year, it was $3,800.
The annual dividend for the most recent policy year was $40, and she uses
the list of benchmark prices to determine the assumed yearly price per
$1,000 of protection. She wants to find out if the rate of return shes
receiving on the savings component of her policy is reasonable.

2. Albert is 52 years old. His annual premium (P) is $2,000 for a $200,000
whole life policy. The cash surrender value of her policy at the end of the
most recent completed policy year was $6,400; the previous year, it was
$5,600. The annual dividend for the most recent policy year was $100, and
he uses the list of benchmark prices to determine the assumed yearly price
per $1,700 of protection. He wants to find out if the rate of return hes
receiving on the savings component of his policy is reasonable.

3. Ram is 40 years old and plans to retire at 60. His current salary is Rs 3 lakhs
and is expected to remain same every year. His personal expenses, life
insurance premiums that he pays and taxes are around Rs 1.25 lakhs. Ram
dies at the age of 45 years. Calculate the life cover which he needs to take.

4. Archana is 50 years old and plans to retire at 60. His current salary is Rs 6
lakhs and is expected to remain same every year. Her personal expenses, life
insurance premiums that she pays and taxes are around Rs 4 lakhs. Archana
dies at the age of 53 years. Calculate the life cover which she needs to take.