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Question
Solve the following :
A 35-year old person takes a policy for ₹1,00,000 for a period of 20 years. The rate of premium is ₹76 and the average rate of bonus is ₹7 per thousand p.a. If he dies after paying 10 annual premiums, what amount will his nominee receive?
Solution
Given, Policy value = ₹1 lakh,
Period of the policy = 20 years
But, the person dies after paying 10 annual premiums.
∴ Nominee will get entire Policy value of ₹1,00,000 on account of death. Also, rate of bonus is ₹7 per thousand per annum
∴ Bonus (per year) = `(7)/(1,000) xx 1,00,000` = ₹7,00
∴ Bonus for 10 years = 700 x 10 = ₹7,000
∴ Amount received by his nominee
= Policy value + Bonus
= 1,00,000 + 7,000
= ₹1,07,000
∴ Amount received by his nominee is ₹1,07,000.
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Property value = ₹ 12,50,000
Rate of premium, r = ₹ 3%
If property is fully insured, the policy value is same as property value therefore policy value = `square`
Premium = `"r"/100 xx "policy value"`
= `square/100 xx 12,50,000`
= `square`
Policy value = ₹ 80,000
Period of policy = 20 years
Amount of money paid in 10 years = `square`
Annualized average rate per bonus = ₹ 20 per thousand per year
For one year, bonus = `square/1000 xx 80,000`
= ₹ 1,600
Bonus for 10 years = `10 xx square`
= ₹ 16,000
Total amount after 10 years = `square + 16000`
= ₹ `square`
Property value = ₹ 12,50,000
Rate of premium, r = ₹ 3%
If property is 80% insured
Policy value = 80% of its property value
= `square/100 xx 12,50,000`
= ₹ 10,00,000
Premium = `square/100 xx 10,00,000`
= ₹ `square`
