MANAGEABLE PREMIUM PAYMENTSPay for at least 10 years or opt to increase your fund's value through top-ups or excess payments on top of your regularpremium.Note: Benefits indicated above are subject to the specific guidelines set by Sun Life and the actual provisions of the insurance policy contract.

With the limited payment policy, you pay premiums up to a certain age and after that age has been reached you:

Fill in the Blank QuestionFill in the blank question.Under the guaranteed renewable policy provision, the insurance company cannot raise premiums unless it raises premiums for all members in your .

A PPF account can be extended in a block of 5 years once the tenure of 15 years is completed. For how long one can continue extending the PPF account

Suppose the policy does not have any death benefit, which means if the insured dies thepolicy stops making payments (i.e., ignore Column 3 and 4). Assume the policyholder doesnot surrender the policy before death. (10’)(a) Calculate the internal rate of return (IRR) of this policy for buyers of 65 (the buyer isright before his 65th birthday). Assume the first payment starts one year later. Thatis, the buyer can receive 5800 × 12 at the end of every year. Note: the IRR is such thatthe PV of premium equals the PV of expected benefits. (8’)(b) Suppose there is another financial instrument (e.g., a bond) that can achieve the samelevel of IRR as you calculate in part (a). What is the benefit of the annuity plan,compared with the alternative instrument? (2’)2. Death benefit and IRR. (20’)The death benefit we consider is simpler than the death benefit from the actual plan (ifyou read the document through the link). Assume that if the insured dies within the5

An entity's financial year ends on 30 June 2015. On 1 April 2015 it pays a 12-month insurance premium of $16 000. Under the accrual system of accounting, how much of the premium will be recognised as an asset for the year ended 30 June 2015?