ISR3702
ASSIGNMENT 2 SEMESTER 2 2025
UNIQUE NO.
DUE DATE: SEPTEMBER 2025
, Life Insurance
Question 1: Life policies covered by National Health Insurance (2 marks)
National Health Insurance (NHI) is not a life policy in the traditional sense; it is
a public health financing system aimed at providing universal healthcare to all
South Africans (National Department of Health, 2021).
The NHI mainly covers health-related benefits such as:
1. Comprehensive healthcare services – preventive, promotive, curative,
and rehabilitative.
2. Hospitalisation and specialist services – unlike life insurance which
pays out cash on death/disability, NHI focuses on medical treatment
access (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, payouts are made to named
beneficiaries.
o NHI does not pay beneficiaries; it funds healthcare services directly.
2. Sum Assured/Death Benefit Clause – Life insurance provides a fixed payout
upon death.
o NHI does not provide lump-sum payouts; it funds medical treatment.
3. Premium Payment Obligation – Life insurance requires monthly premiums by
policyholders.
o NHI is funded through taxes and payroll deductions, not voluntary
premiums (McIntyre & Ataguba, 2018).
4. Policy Loan or Surrender Value Clause – Life policies may have cash values
or loans against policies.
o NHI has no investment or surrender value; it is purely a service-based
scheme.
ASSIGNMENT 2 SEMESTER 2 2025
UNIQUE NO.
DUE DATE: SEPTEMBER 2025
, Life Insurance
Question 1: Life policies covered by National Health Insurance (2 marks)
National Health Insurance (NHI) is not a life policy in the traditional sense; it is
a public health financing system aimed at providing universal healthcare to all
South Africans (National Department of Health, 2021).
The NHI mainly covers health-related benefits such as:
1. Comprehensive healthcare services – preventive, promotive, curative,
and rehabilitative.
2. Hospitalisation and specialist services – unlike life insurance which
pays out cash on death/disability, NHI focuses on medical treatment
access (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, payouts are made to named
beneficiaries.
o NHI does not pay beneficiaries; it funds healthcare services directly.
2. Sum Assured/Death Benefit Clause – Life insurance provides a fixed payout
upon death.
o NHI does not provide lump-sum payouts; it funds medical treatment.
3. Premium Payment Obligation – Life insurance requires monthly premiums by
policyholders.
o NHI is funded through taxes and payroll deductions, not voluntary
premiums (McIntyre & Ataguba, 2018).
4. Policy Loan or Surrender Value Clause – Life policies may have cash values
or loans against policies.
o NHI has no investment or surrender value; it is purely a service-based
scheme.
