New Year Sale 2026! Hurry Up, Grab the Special Discount - Save 25% - Ends In 00:00:00 Coupon code: SAVE25
Welcome to Pass4Success

- Free Preparation Discussions
Mail Us support@pass4success.com
Location US
Mob_nav_barsMENU

AAFM CWM_LEVEL_2 Exam - Topic 3 Question 10 Discussion

Actual exam question for AAFM's CWM_LEVEL_2 exam
Question #: 10
Topic #: 3
[All CWM_LEVEL_2 Questions]

Section C (4 Mark)

Read the senario and answer to the question.

By calculating HLV of Mahesh indicate the shortfall in his life insurance coverage using the given data:

Mr. Mahesh age 52, retirement age 60, paying professional tax of Rs. 5800 and income tax subject to allowable deductions as Rs. 230000, reasonable self maintenance expenditure estimated Rs. 140000 p.a., life insurance premium for self Rs. 25000 with total sum assured Rs. 1200000. He also pays insurance premium of Rs. 15500 and Rs. 7000 for life insurance policy of his wife and son respectively. Rate of interest assured for capitalization of future income is at 7%

Show Suggested Answer Hide Answer
Suggested Answer: A

by Frederica at May 04, 2022, 04:36 AM

Limited Time Offer

25%

Off

Get Premium CWM_LEVEL_2 Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

0/2000 characters
Submit Cancel
Susy
4 months ago
Based on his expenses, he should definitely reassess his coverage.
upvoted 0 times
...
Simona
5 months ago
I disagree, Rs. 30.23 lakh seems too high for his needs.
upvoted 0 times
...
Lashaunda
5 months ago
Surprised he’s only got Rs. 12 lakh at age 52!
upvoted 0 times
...
Owen
5 months ago
I think he needs way more coverage than that!
upvoted 0 times
...
Ronny
5 months ago
Mahesh's total life insurance is only Rs. 12 lakh.
upvoted 0 times
...
Luisa
5 months ago
I think the clear dome is the safest bet - it's unlikely to negatively impact the image quality compared to the other options.
upvoted 0 times
...
Candra
5 months ago
Okay, this looks like an HLV (Human Life Value) calculation. I'll need to break down his income, expenses, and tax deductions carefully.
upvoted 0 times
...

Save Cancel