Income replacement for life insurance
Computing the cover required as the present value of the income the earner would have produced over the remaining working years, discounted at the inflation-adjusted return, less existing cover.
This one is not written up yet
The definition above is the short version. A full explanation — how it works, a worked example and the exam traps — is still being written. In the meantime the chapter below covers it in context.
Written up from the same chapter
- Co-payA fixed percentage of every admitted claim that the insured pays out of pocket — a proportional share of the loss, applied after any deductible, in exchange for a lower premium.
- DeductibleThe portion of a claim the insured bears before the insurer pays anything — a fixed rupee threshold that lowers the premium and keeps small claims out of the system.
- PMT functionThe spreadsheet function that converts a target corpus into the fixed periodic saving needed to reach it — the arithmetic behind every "how much should I invest a month" answer.
- PV functionThe spreadsheet function that converts a stream of future payments into the single lump sum needed today — the tool the workbook uses to size a retirement corpus and a life insurance cover.
Where this is taught
Free preparation for NISM Series X-B← All terms