ISR3702
Assignment 2
Semester 2 2024
QUESTIONS WITH 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)
In order to determine the appropriate life insurance policy for each application received by Latu
Life Insurance Company in January 2024, it’s important to analyze the details of each scenario
and match the application to the type of life insurance that best suits the applicant's needs. Since
you haven’t provided the individual applications, I’ll outline common life insurance policies and
the situations where each is appropriate. You can then apply these to your case scenarios.
Common Types of Life Insurance Policies:
1. Term Life Insurance:
o Best for: Temporary needs, such as covering a mortgage, child’s education, or
other significant but time-limited obligations.
o Details: Provides coverage for a specific term (e.g., 10, 20, or 30 years). If the
policyholder passes away during the term, the beneficiaries receive the death
benefit. If the policyholder survives the term, there is no payout.
o Example Substantiation: A young family with children might purchase a 20-year
term policy to ensure that, in the event of the policyholder's death, the family can
Assignment 2
Semester 2 2024
QUESTIONS WITH 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)
In order to determine the appropriate life insurance policy for each application received by Latu
Life Insurance Company in January 2024, it’s important to analyze the details of each scenario
and match the application to the type of life insurance that best suits the applicant's needs. Since
you haven’t provided the individual applications, I’ll outline common life insurance policies and
the situations where each is appropriate. You can then apply these to your case scenarios.
Common Types of Life Insurance Policies:
1. Term Life Insurance:
o Best for: Temporary needs, such as covering a mortgage, child’s education, or
other significant but time-limited obligations.
o Details: Provides coverage for a specific term (e.g., 10, 20, or 30 years). If the
policyholder passes away during the term, the beneficiaries receive the death
benefit. If the policyholder survives the term, there is no payout.
o Example Substantiation: A young family with children might purchase a 20-year
term policy to ensure that, in the event of the policyholder's death, the family can
