AAFM Exam GLO_CWM_LVL_1 Topic 7 Question 90 Discussion

Actual exam question for AAFM's GLO_CWM_LVL_1 exam

Question #: 90
Topic #: 7

Sunil, aged 33 years, is having a policy of Rs. 1 Lac sum assured and is paying premium of Rs. 1,800/- for the last 10 years. The cash surrender value of this policy is at the end of previous year was Rs. 20,000. It is estimated that by this year end, the cash surrender value of this policy would be Rs. 22,900.

There is another term insurance of sum assured of Rs. 80,000 costs Rs. 300/- per annum which is available to him . If rate of interest is 6%, then first calculate the CPT of existing and new policy respectively and then advise Sunil if it is better to continue this policy or to discontinue it?

A2.69 ,3.77.Continue this policy

B3.45,4.33.Continue this policy

C3.19 ,2.89.Discontinue this policy

D4.13 ,3.97.Disontinue this policy

Show Suggested Answer

Suggested Answer: A

by Theresia at Sep 18, 2024, 10:32 PM

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Ligia

8 days ago

I believe option B is the correct answer, as it suggests continuing the policy.

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Glory

10 days ago

Ah, the age-old dilemma of insurance policies. I'd say go with option D just to keep things interesting. Who needs money when you can have excitement, right?

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Gearldine

10 days ago

Wait, so we're supposed to calculate the CPT? I thought this was a simple question about insurance. I'm just going to go with option A and hope for the best.

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Jacob

12 days ago

Hmm, I'm not sure about this one. The calculations seem a bit complex, but I think I'd go with option B. Seems like the better choice to continue the policy.

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Claudio

20 days ago

I agree, it's important to compare the CPT before making a decision.

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Lura

24 days ago

I think Sunil should calculate the CPT of both policies first.

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