Insurance needs analysis: 1. Rajat, 35 years is a doctor and has an annual income of Rs. 10 lakh p.a.

his wife Smriti is 33, She is also a doctor but has not been working since a son was born to them 1 year ago. She has no immediate intention to return to work. His familys expense details are as follows Total Family expenses Rs. 7 Lakhs Rajats personal expense Rs. 2 Lakhs Smirits personal expense Rs. 1 lakh You can assume: Rajat & Smriti to have a life expectancy of 80 years Rajat will retire at the age of 55 Inflation - 6 %, Expected return -11% Rise in Rajats annual income - 10% Estimated funeral expenses, in case of death - 2 Lakhs The couple has following assets and liabilities Assets: House - 50 lakhs Mutual funds - 5 lakhs FDs - 7 Lakhs Liabilities: Home loan: 26 lakhs Car loan : 6 lakhs They also expect their son to become a doctor when he grows up. Expected education cost for MBBS today is 10 lakhs and for further education is 15 lakhs. Son is expected to go for MBBS at 17 and specialization at 22. Considering all of the above factors, how much additional life insurance would you recommend to Rajat using HLV method, Need based - capital liquidation and preservation methods. Premium calculation:
A group of 5000 persons each aged 43 years wish to apply for term insurance for a one year period for a sum of Rs. 7,50,000. If mortality tables show that out of 90,00,000 people 48,000 die within a year, find the premium to be paid by each of the 5000 applicants.

Principles
An insurance company pays the insured the sum for the goods destroyed in his godown. There is still some salvage in the godown and the value would be around of Rs. 5000. In this situation the share of the insurance company is :

A building is worth Rs. 10 crore. A person insures it for Rs. 15 crores with company A and 5 crores with company B. There is an earthquake that completely destroys the building. In this case which insurance company will how much A godown that is worth Rs. 20 Lakhs. A person insures it for Rs. 10 Lakhs with company A and 5 lakhs with company B. There is a fire that completely destroys the godown. In this case which insurance company will pay how much? In the above question if the fire destroys only a part of the building and loss is estimated to be 6 lakhs then what will be your answer. A property worth Rs. 125000 has an insurance policy that has an excess of Rs. 5000 and a sum assured of Rs. 1 Lakh. When there is a loss of Rs. 55000 then the insurance company will pay a sum of _____