AAFM GLO_CWM_LVL_1 Exam - Topic 6 Question 14 Discussion

Actual exam question for AAFM's GLO_CWM_LVL_1 exam

Question #: 14
Topic #: 6

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 Deandrea at May 07, 2022, 01:30 AM

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Sheridan

4 months ago

Not sure about those numbers, they seem a bit too optimistic.

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Bonita

5 months ago

I agree with Melodie, continuing seems wise!

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Rose

5 months ago

Wait, how can the CPT of the new policy be lower? That seems off.

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Celestina

5 months ago

I think option C makes sense, better to discontinue.

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Melodie

5 months ago

The cash surrender value is increasing, that's a good sign!

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Kathryn

5 months ago

Hmm, I'm not too sure about this one. I'll need to think it through carefully and review the options. Let me see if I can eliminate any of the choices first.

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Avery

5 months ago

I'm not entirely sure, but I think we looked at a question similar to this that suggested MSPs could actually enhance security in some cases.

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Anika

5 months ago

This seems straightforward to me. The scenario mentions that Noah lost money on a stock investment due to a lack of understanding about the risks. The Dodd-Frank Act, which was passed in response to the financial crisis, would be the most applicable law to protect consumers in a situation like that.

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Val

5 months ago

I can't recall clearly, but I feel like malformed packets filtering was mentioned as a feature in one of our sessions.

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Tish

5 months ago

Hmm, this is a tricky one. I'm not totally sure what "tracing a requirement" means. Is it just about linking the requirement to other related things, or is there more to it? I'll have to think this through carefully.

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