Planit:Life and Disability Insurance in One Policy Exercise

From Planipedia

Solve for the following problem:

Ren and Shou Bai want to know the implication of event-based scenarios on their ability to reach their life goals. They have given you some summary insurance information. Ren tells you that he owns permanent life coverage of a value of $120,000, and disability insurance that provides a non-indexed $2,000 monthly benefit. He has Group coverage through his work that pays out $100,000 if he were to die or become disabled. Shou has no permanent life insurance, but has a Term Life policy worth $110,000. While active, this policy pays out $30,000 as a lump sum on disability. She has additional disability insurance that provides non-indexed benefits of $1,500 each month.

Solve for the following problem:

Note: This exercise uses Takaful type insurance as well as conventional insurance.

Abdul Haqq tells you that he owns permanent life coverage of a value of RM 200,000, and he has Group takaful coverage through his work that has a sum assured of RM 75,000 and a participant’s account with RM 5,000. In the event of his disability, both of these policies immediately pay out their full amount. Maznita Omar has no permanent life insurance or takaful, but has family takaful that has a sum assured of RM 90,000 that she plans on participating in until she retires. Another RM 30,000 is from her own participant’s account. It is due to expire in about five years. While active, this policy also pays out its full lump sum on her complete disability. You estimate her participant’s account will grow at 7.0% annually based on her contributions and dividend on investments.

Check the accuracy of your client against the answer key.