ISR3702
Assignment 2
Semester 2 2024
QUESTIONS WITH COMPLETE ANSWERS
[School]
[Course title]
, ISR3702 Assignment 2 Semester 2 2024
Question 1 (46 marks)
Latu Life Insurance Company provides financial services in the Republic of South Africa. In
January 2024 the company received the following applications:
1.1 Indicate an appropriate life policy or policies for each application and substantiate your
answer. (22)
1.2 Classify each of the applications into an underwriting class and substantiate your answer.
(22)
1.3 Name one variable that is missing from the applications but that could be used to answer
question 1.2 above. (2)
1.1 Indicating Appropriate Life Policies for Each Application (22 marks)
Here, you will be presented with various life insurance applications. The objective is to
recommend an appropriate life policy for each applicant based on their needs and
circumstances. Here's a guideline on how to approach it:
• Types of Life Insurance Policies you may need to choose from:
1. Term Life Insurance: Provides coverage for a specified period (e.g., 10, 20
years). If the insured dies during this period, the beneficiary receives a death
benefit. Ideal for individuals who need protection for a limited time (e.g., to cover
a mortgage or until children are grown).
Assignment 2
Semester 2 2024
QUESTIONS WITH COMPLETE ANSWERS
[School]
[Course title]
, ISR3702 Assignment 2 Semester 2 2024
Question 1 (46 marks)
Latu Life Insurance Company provides financial services in the Republic of South Africa. In
January 2024 the company received the following applications:
1.1 Indicate an appropriate life policy or policies for each application and substantiate your
answer. (22)
1.2 Classify each of the applications into an underwriting class and substantiate your answer.
(22)
1.3 Name one variable that is missing from the applications but that could be used to answer
question 1.2 above. (2)
1.1 Indicating Appropriate Life Policies for Each Application (22 marks)
Here, you will be presented with various life insurance applications. The objective is to
recommend an appropriate life policy for each applicant based on their needs and
circumstances. Here's a guideline on how to approach it:
• Types of Life Insurance Policies you may need to choose from:
1. Term Life Insurance: Provides coverage for a specified period (e.g., 10, 20
years). If the insured dies during this period, the beneficiary receives a death
benefit. Ideal for individuals who need protection for a limited time (e.g., to cover
a mortgage or until children are grown).
