AAFM Exam GLO_CWM_LVL_1 Topic 6 Question 91 Discussion

Actual exam question for AAFM's GLO_CWM_LVL_1 exam

Question #: 91
Topic #: 6

Sachin aged 35 years is married and is working as a manager in M/s Birla Mill Ltd. His most likely retirement age is 60 years. His present salary is Rs. 3,00,000/- pa. His self-maintenance expenses are 30,000/- per year. Life insurance premium paid is 15,000/-. Income tax & professional tax amount to Rs. 20000/-. Rate of interest assumed for capitalization of future income is 8%. Calculate Sachin's HLV to recommend adequate insurance cover

ARs. 20 lakh

BRs. 35 lakh

CRs. 45 lakh

DRs. 27 Lakh

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Suggested Answer: D

by Marilynn at Sep 16, 2024, 05:07 AM

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Breana

3 months ago

Forget the HLV, I'm more concerned about Sachin's life expectancy. At 35, he's practically a dinosaur already! Better start planning the funeral arrangements.

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Johnna

3 months ago

I'm going with C) Rs. 45 lakh. Gotta go big or go home, right? Who needs a roof over their head when you can have a million-dollar insurance payout?

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Herschel

3 months ago

D) Rs. 27 Lakh, for sure. I've got this one down, no doubt about it. It's like second nature to me at this point.

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Beatriz

2 months ago

D) Rs. 27 Lakh, for sure. I've got this one down, no doubt about it. It's like second nature to me at this point.

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Magnolia

2 months ago

I'm going with B) Rs. 35 lakh

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Evan

2 months ago

I think it's C) Rs. 45 lakh

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Della

2 months ago

D) Rs. 27 Lakh

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Annice

3 months ago

C) Rs. 45 lakh

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Dominga

3 months ago

B) Rs. 35 lakh

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Amber

3 months ago

A) Rs. 20 lakh

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Tonja

3 months ago

Hmm, I'm not sure about this one. I'll have to go over the formula again to make sure I'm doing it right. Maybe I should have paid more attention in that insurance class.

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Xuan

2 months ago

That sounds right. Let's double check our calculations before making a final recommendation.

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Corinne

2 months ago

I think the answer might be Rs. 35 lakh. What do you think?

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Joseph

3 months ago

Don't worry, I can help you with that. Let's go over the formula together.

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Brock

4 months ago

I'm not sure, but I think the answer might be C) Rs. 45 lakh, considering all the expenses and future income.

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Weldon

4 months ago

I agree with Venita, because Sachin's future income needs to be capitalized at 8% to calculate his HLV.

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Alpha

4 months ago

I think the answer is B) Rs. 35 lakh. The question provides all the necessary information to calculate the HLV, and I've double-checked my calculations.

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Johanna

3 months ago

Yes, calculating the Human Life Value is crucial to recommend the right insurance cover for Sachin's family's financial well-being.

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Susana

3 months ago

I think it's important to consider all the expenses and future income to ensure Sachin's family is financially secure in case of any unforeseen events.

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Merilyn

4 months ago

I agree with you, the answer is B) Rs. 35 lakh. Sachin's future income needs to be capitalized to determine the adequate insurance cover.

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Venita

4 months ago

I think the answer is B) Rs. 35 lakh.

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