Page 24 - Life Assurance
P. 24
6- In contrast to years past, many women
now, both married and single are employed
outside the home:
a) In your opinion, does the earning capacity
of a working wife give rise to economic value for
which she should be insured.
b) Should the life of a wife and mother not
employed outside the home be insured? Why or
why not?
7-(a) using the capitalization of income
approach and a 7 percent interest assumption,
calculate the present value of A's life. A earns
L.E 20,000 a year, his age is 40, and expects to
retire at age 60. Personal maintenance is L.E
8000 a year. (Use English life table A 24-29 ult).
(b) If considered a typical will A have
enough life insurance? Why?
8-(a) In what way does the death of a partner
or of a stockholder in a closely held corporation
cause a loss to the business firm?
(b) How can life insurance offset this loss?
Life21/life/life08
41
now, both married and single are employed
outside the home:
a) In your opinion, does the earning capacity
of a working wife give rise to economic value for
which she should be insured.
b) Should the life of a wife and mother not
employed outside the home be insured? Why or
why not?
7-(a) using the capitalization of income
approach and a 7 percent interest assumption,
calculate the present value of A's life. A earns
L.E 20,000 a year, his age is 40, and expects to
retire at age 60. Personal maintenance is L.E
8000 a year. (Use English life table A 24-29 ult).
(b) If considered a typical will A have
enough life insurance? Why?
8-(a) In what way does the death of a partner
or of a stockholder in a closely held corporation
cause a loss to the business firm?
(b) How can life insurance offset this loss?
Life21/life/life08
41
