AAFM GLO_CWM_LVL_1 Exam - Topic 2 Question 12 Discussion

Actual exam question for AAFM's GLO_CWM_LVL_1 exam

Question #: 12
Topic #: 2

Mahesh earns 1,20,000 pa. He has total debt of Rs. 2,00,000 and have two dependants. Interest rate is 7%, and assumes 80% of his pre-death salary is the estimated requirement to maintain his family after paying the loan. Calculate the life insurance cover needed under multiple approach method.

A18 lakhs

B15 lakhs

C12 lakhs

D16 lakhs

Show Suggested Answer

Suggested Answer: D

by Merissa at May 06, 2022, 01:00 AM

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Nathan

10 months ago

Totally agree, 16 lakhs sounds about right!

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Haydee

11 months ago

Wait, how can he need 18 lakhs? That seems too much!

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Salina

11 months ago

I think the cover should be higher than 15 lakhs.

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Arminda

11 months ago

He has a debt of 2,00,000.

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Luis

11 months ago

Mahesh's salary is 1,20,000 pa.

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Ty

11 months ago

Defining valid values and saving case data - those are the two situations where I would configure local data storage. I'm feeling good about this one.

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Veronika

12 months ago

Okay, multiple approach means I'll calculate income replacement and debt clearance separately.

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