Calculate how much insurance is required under income replacement method?

Posted by: Pdfprep Category: GLO_CWM_LVL_1 Tags: , ,

Mohan is a manager in ABC Co. Ltd. His family consists of his wife and child. It is assumed that his family needs a minimum of Rs. 10,000 per month to maintain current standard of life in unfortunate case of demise of Mohan. The interest rate is 6% pa.

Calculate how much insurance is required under income replacement method?
A . 20 lakhs
B . 15 lakhs
C . 25 lakhs
D . 18 lakhs

Answer: A