ISR3702
Unique No:
Assignment 2
Due 2025
, Life Insurance
Question 1: Life Policies Covered by National Health Insurance (2 marks)
The National Health Insurance (NHI) is not a traditional life insurance product. Instead,
it is a government-funded health financing system aimed at guaranteeing all South
Africans access to essential healthcare services (National Department of Health, 2021).
The NHI provides coverage for:
1. A wide range of healthcare services, including disease prevention, health
promotion, treatment, and rehabilitation.
2. Hospitalisation and access to specialist care. Unlike life insurance, which pays
out cash upon death or disability, the NHI is designed to provide direct healthcare
services (South African Government, 2023).
Question 2: Five Policy Clauses of Life Insurance That Do Not Apply to NHI (10
marks)
1. Beneficiary Clause – In life insurance, benefits are paid to nominated
beneficiaries.
o Under the NHI, there are no beneficiary payments; instead, the scheme
directly covers healthcare expenses.
2. Sum Assured / Death Benefit Clause – Life insurance provides a lump-sum
payout on the death of the insured.
o The NHI does not pay death benefits; its role is to finance healthcare
services.
3. Premium Payment Clause – Life insurance policies require members to pay
regular premiums.
o The NHI is mainly funded by taxation and payroll contributions rather than
voluntary premiums (McIntyre & Ataguba, 2018).
4. Policy Loan or Surrender Value Clause – Some life policies accumulate a cash
value, which can be withdrawn or borrowed against.
Unique No:
Assignment 2
Due 2025
, Life Insurance
Question 1: Life Policies Covered by National Health Insurance (2 marks)
The National Health Insurance (NHI) is not a traditional life insurance product. Instead,
it is a government-funded health financing system aimed at guaranteeing all South
Africans access to essential healthcare services (National Department of Health, 2021).
The NHI provides coverage for:
1. A wide range of healthcare services, including disease prevention, health
promotion, treatment, and rehabilitation.
2. Hospitalisation and access to specialist care. Unlike life insurance, which pays
out cash upon death or disability, the NHI is designed to provide direct healthcare
services (South African Government, 2023).
Question 2: Five Policy Clauses of Life Insurance That Do Not Apply to NHI (10
marks)
1. Beneficiary Clause – In life insurance, benefits are paid to nominated
beneficiaries.
o Under the NHI, there are no beneficiary payments; instead, the scheme
directly covers healthcare expenses.
2. Sum Assured / Death Benefit Clause – Life insurance provides a lump-sum
payout on the death of the insured.
o The NHI does not pay death benefits; its role is to finance healthcare
services.
3. Premium Payment Clause – Life insurance policies require members to pay
regular premiums.
o The NHI is mainly funded by taxation and payroll contributions rather than
voluntary premiums (McIntyre & Ataguba, 2018).
4. Policy Loan or Surrender Value Clause – Some life policies accumulate a cash
value, which can be withdrawn or borrowed against.
