[Company name]
ISR3702
Assignment 2
Semester 2 2024
QUESTIONS AND ANSWERS
, 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)
To answer this question, each application scenario would need to be provided to
determine the appropriate life policy. If you can share the specific details for each
application, I can help identify the suitable life insurance policies and explain why they
are appropriate for each case.
In general, the following are some common life insurance policies:
1. Term Life Insurance: Provides coverage for a specified term (e.g., 10, 20, or 30
years) and pays a death benefit only if the insured dies during the term. It's
suitable for individuals who want to provide financial protection for their families
for a specific period.
2. Whole Life Insurance: Offers lifelong coverage and includes a cash value
component that grows over time. It's appropriate for those who want permanent
coverage with a savings element.
3. Endowment Policy: Pays out a lump sum after a specific term or upon death. It's
suitable for individuals who want to save towards a particular financial goal while
also having life insurance coverage.
ISR3702
Assignment 2
Semester 2 2024
QUESTIONS AND ANSWERS
, 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)
To answer this question, each application scenario would need to be provided to
determine the appropriate life policy. If you can share the specific details for each
application, I can help identify the suitable life insurance policies and explain why they
are appropriate for each case.
In general, the following are some common life insurance policies:
1. Term Life Insurance: Provides coverage for a specified term (e.g., 10, 20, or 30
years) and pays a death benefit only if the insured dies during the term. It's
suitable for individuals who want to provide financial protection for their families
for a specific period.
2. Whole Life Insurance: Offers lifelong coverage and includes a cash value
component that grows over time. It's appropriate for those who want permanent
coverage with a savings element.
3. Endowment Policy: Pays out a lump sum after a specific term or upon death. It's
suitable for individuals who want to save towards a particular financial goal while
also having life insurance coverage.
