Thursday, February 9, 2017

Review of eBook titled - Certified Actuarial Analyst (CAA) Module 0 Practice Papers (With Solutions) By Vijay Malhotra

It is Kindle Edition or eBook, which can be read on any device whether it is kindle or computer/laptop or even a smart phone. It comprise of three Practice Exams (mock tests) of two hours duration each. Current Syllabus for Module 0 has been considered while preparing these mock tests.

Obviously, this is not an online examination practice in strict sense, but is quite similar to the same. As one can read the questions on his/her kindle/computer and solve as usual with paper and pencil and then note down the answers on a sheet instead of clicking on the computer screen. The recommended calculator and book on Formulae and Tables for Actuarial Examinations can also be used while taking these test(s). The answers have been given latter in the eBook with detailed solution to each and every practice question. One can take as an exam or mock test and then evaluate its knowledge and knowhow. The solutions are further training in the material one is supposed to know for Module 0 of CAA. Here practice exams/tests are designed to give you a realistic sort of mock test for your exam preparation. Each practice exam contains 60 (earlier it used to have 65 questions) original exam-style questions and has full solutions. Questions have been classified topic wise and the syllabus of each topic of the Module 0, as mentioned above. The same can be referred in the CAA Module 0 Resource guide available on the website of the bodies supposed to have the final exams. The Study solutions do give you a guide to solve each topic of the Module including the required shortcuts in order to help you study efficiently and have valuable experience in taking the exam too. The solutions do give the formulae used to solve the problems selected for the purpose. These various Tests for each topic helps you to decide how much time you need to spend in attempting the exam questions. As you go through these three mock tests, progress of exam preparation can be ascertained and build the confidence in taking the final online exams. Each Practice Exam contains 60 questions, as they are to be in the final exam, it will give you a realistic assessment of your chances of success as well. Top of it the candidates would have very good practice in taking similar exams and may help them in successfully passing the same.  

Tuesday, February 2, 2016

By having Public Provident Fund (PPF) Account a Young Person can have more than Thirty Two Million of Rupees after Thirty Five Years i.e., after his Retirement

As far as possible we should save money with strict discipline than what we normally do.  PPF is a way to save and make more tax free and secured savings. We should save money not for sake of it. We should save so that we can afford better and planned future. After retirement, we can then afford to maintain one self and become financially independent. Some after retirement even go for reverse mortgage of their house in which they are living. Not because you want to hoard all your cash, but because you want to use it for good in future. Think about your own retirement.

Suppose that there is an individual who has started his career and his income is such that he needs to save the maximum permissible at present (say one hundred and fifty thousand rupees annually) in order to save income tax on the said amount. One of the avenues for this is to deposit in Public Provident Fund (PPF). In case of PPF, the present rate of interest is 8.7% (this interest is tax free in the hands of the individual) and maximum amount one can deposit in this account is one hundred and fifty thousand rupees annually. One benefit is that the depositor will be saving tax not only on the present income, but also on its proceeds of all the subsequent 15 years, which is also extendable for once or more in a block of 5 years each time. The account holder can retain the account after maturity for any period without making any further deposits too. The balance in the account will continue to earn interest at normal rate as admissible on PPF account till the account is closed.

If the person deposits the entire saving amount of 0.15 million rupees in the beginning of the financial year (say by 5th of April) and continues to do the same every year till say for thirty-five years, then he will be getting (tax-free) amount of about 33 million rupees. Supposing that the individual starts this process at the age twenty-five, he becomes a multi milliner at age of sixty years – which is the retirement age for many corporate employees or self-employed persons. This amount is realistic and remains secure with the Indian Government in either Post Offices or many designated bank branches, if the interest rate remains 8.7% throughout. If the rate of interest increases, this amount would be more.  Mind it one should not draw any amount from the stated corpus. This may be noted that one is only depositing 5.25 million rupees in equal parts annually and is getting more than 32.8663 million rupees after thirty-five years. Thus, by adopting strict discipline in managing the finance, one can be in the upper strata even after one’s retirement.  There are options to have closing or not extending the said account after 15, 20, 25, 30 years as well and then the person would be having Rupees over 4.67, 8.06, 13.21 and 21.01 millions respectively.  Besides the above amount, every year the person is saving Income Tax too on 0.15 million saving under Section 80C of IT Act.  

Thursday, January 28, 2016

How people are dying in the World?

As per WHO, in 2012 an estimated 56 million people died worldwide. 

Non-communicable diseases (NCDs) were responsible for 68% of all deaths globally in 2012, and have been increasing over years. The four main NCDs are cardiovascular diseases, cancers, diabetes and chronic lung diseases.

Communicable, maternal, neonatal and nutrition conditions collectively were responsible for 23% of global deaths, and injuries caused 9% of all deaths. 

Cardiovascular diseases are the number 1 cause of death throughout the world. Cardiovascular diseases killed 17.5 million people in 2012 that is 3 in every 10 deaths. Of these, 7.4 million people died of Ischemic heart disease and 6.7 million from stroke.

In terms of number of deaths, 28 million (about three quarters) of the 38 million of global NCD deaths in 2012 occurred in low and middle-income countries.
In terms of proportion of deaths that are due to NCDs, high-income countries have the highest proportion – 87% of all deaths were caused by NCDs – followed by upper-middle income countries (81%). The proportions are lower in low-income countries (37%) and lower-middle income countries (57%).
Tobacco use is a major cause of many of the world’s top killer diseases – including cardiovascular disease, chronic obstructive lung disease and lung cancer. In total, tobacco use is responsible for the death of about 1 in 10 adults worldwide. Smoking is often the hidden cause of the disease recorded as responsible for death.
In high-income countries, 7 in every 10 deaths are among people aged 70 years and older. People predominantly die of chronic diseases: cardiovascular diseases, cancers, dementia, chronic obstructive lung disease or diabetes. Lower respiratory infections remain the only leading infectious cause of death. Only 1 in every 100 deaths is among children under 15 years.
In low-income countries, nearly 4 in every 10 deaths are among children under 15 years, and only 2 in every 10 deaths are among people aged 70 years and older. People predominantly die of infectious diseases: lower respiratory infections, HIV/AIDS, diarrhea diseases, malaria and tuberculosis collectively account for almost one third of all deaths in these countries. Complications of childbirth due to prematurity, and birth asphyxia and birth trauma are among the leading causes of death, claiming the lives of many newborns and infants.
In 2012, 6.6 million children died before reaching their fifth birthday; almost all (99%) of these deaths occurred in low- and middle-income countries. The major killers of children aged less than 5 years were prematurity, pneumonia, birth asphyxia and birth trauma, and diarrheal diseases. Malaria was still a major killer in sub-Saharan Africa, causing about 15% of fewer than 5 deaths in the region.
About 44% of deaths in children younger than 5 years in 2012 occurred within 28 days of birth – the neonatal period. The most important cause of death was prematurity, which was responsible for 35% of all deaths during this period.
How has the situation changed in the past decade?
Ischaemic heart disease, stroke, lower respiratory infections and chronic obstructive lung disease have remained the top major killers during the past decade.
Non-communicable diseases (NCDs) were responsible for 68% (38 million) of all deaths globally in 2012, up from 60% (31 million) in 2000. Cardiovascular diseases alone killed 2.6 million more people in 2012 than in the year 2000.
HIV deaths decreased slightly from 1.7 million (3.2%) deaths in 2000 to 1.5 million (2.7%) deaths in 2012. Diarrhea is no longer among the 5 leading causes of death, but is still among the top 10, killing 1.5 million people in 2012.
Tuberculosis, while no longer among the 10 leading causes of death in 2012, was still among the 15 leading causes, killing over 900 000 people in 2012.
Maternal deaths have dropped from 427 000 in the year 2000 to 289 000 in 2013, but are still unacceptably high: nearly 800 women die due to complications of pregnancy and childbirth every day.

Injuries continue to kill 5 million people each year. Road traffic injuries claimed nearly 3500 lives each day in 2012 – more than 600 more than in the year 2000 – making it among the 10 leading causes in 2012.

Monday, January 25, 2016

Probability of Death across the World

Probability of Death across the globe
The following is as per the data provided by WHO for the year 2012. 
Imagine a diverse international group of 1000 individuals representative of the women, men and children from all over the globe who died in 2012.
Of those 1000 people,
  • 133 would have come from low-income countries, 356 from lower-middle-income countries, 302 from upper-middle-income countries and 209 from high-income countries.
  • 143 would have been children under 15 years of age, 407 adults aged 15-69 years old and 450 adults aged 70 years and older.
·       More than half (514) of these 1000 deaths would have been caused by the following 10 top conditions given below:
Cause of Death
Percentage to Total No. of Deaths
Ischemic Heart Disease
Chronic Obstructive Pulmonary Disease (COPD)
Lower Respiratory Infections
Trachea Bronchus Lung Cancers
Diarrheal Diseases
Diabetes Mellitus
Road Injury
Hypertensive Heart Disease
Thus the above implies for a global person that
  • The probability of dying is the lowest if the person belongs to low-income countries and is highest if the person belongs to lower-middle-income countries and the same are 0.133 and 0.356 respectively.  The same is 0.302 and 0.209 if one belongs to upper-middle-income countries and to high-income countries respectively.
  • The probability of dying is the lowest if one is child under 15 years of age and is 0.143.  The probability of dying for adults aged 15-69 years old is 0.407 and 0.45 for adults aged 70 years and older.
  • The probability of dying is 0.514 for individuals with any of the above listed ten top causes of death in the world.