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 life insurance policy in the usual
sense. Instead, it is a publicly funded healthcare financing system designed to
ensure that every South African has access to essential health services (National
Department of Health, 2021).
The NHI covers health-related benefits, including:
1. Comprehensive healthcare services such as prevention, promotion,
treatment, and rehabilitation.
2. Hospital and specialist medical care. Unlike life insurance, which pays a
cash benefit upon death or disability, the NHI focuses on providing direct
access to medical treatment (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 The NHI does not make payments to beneficiaries; it instead covers
healthcare costs directly.
2. Sum Assured / Death Benefit Clause – Life policies provide a lump-sum payout
upon the insured’s death.
o The NHI does not provide cash benefits; its focus is on funding treatment
services.
3. Premium Payment Clause – Life insurance requires policyholders to make
regular premium payments.
o The NHI is financed mainly through general taxation and payroll
deductions, not voluntary premiums (McIntyre & Ataguba, 2018).
4. Policy Loan or Surrender Value Clause – Life insurance may accumulate a cash
value or allow loans against the policy.
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 life insurance policy in the usual
sense. Instead, it is a publicly funded healthcare financing system designed to
ensure that every South African has access to essential health services (National
Department of Health, 2021).
The NHI covers health-related benefits, including:
1. Comprehensive healthcare services such as prevention, promotion,
treatment, and rehabilitation.
2. Hospital and specialist medical care. Unlike life insurance, which pays a
cash benefit upon death or disability, the NHI focuses on providing direct
access to medical treatment (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 The NHI does not make payments to beneficiaries; it instead covers
healthcare costs directly.
2. Sum Assured / Death Benefit Clause – Life policies provide a lump-sum payout
upon the insured’s death.
o The NHI does not provide cash benefits; its focus is on funding treatment
services.
3. Premium Payment Clause – Life insurance requires policyholders to make
regular premium payments.
o The NHI is financed mainly through general taxation and payroll
deductions, not voluntary premiums (McIntyre & Ataguba, 2018).
4. Policy Loan or Surrender Value Clause – Life insurance may accumulate a cash
value or allow loans against the policy.
