ISR3702
Assignment 2
Semester 2
2024
, Question 1
1.1 Appropriate Life Policy for Each Application
1. Presh (24, Female, Construction Worker, Net Worth: R560,000,
Dependants: 2)
o Policy Recommendation: Term Life Insurance
o Substantiation: As a young individual with dependants, a term life
insurance policy would provide financial security to Presh’s dependants
in the event of her premature death. This is an affordable option for a
construction worker, and the cover can be aligned with her net worth.
2. Premita (36, Male, Lawyer, Net Worth: R330,000, Dependants: 1)
o Policy Recommendation: Whole Life Insurance
o Substantiation: Given his profession and age, a whole life insurance
policy ensures lifelong coverage and builds cash value. This policy
would provide a safety net for his dependant, even beyond his working
years.
3. Kgabu (48, Male, Medical Doctor, Heart Attack, Net Worth: R1 million,
Dependants: 0)
o Policy Recommendation: Critical Illness Insurance
o Substantiation: Due to his previous heart attack, Kgabu should
consider critical illness insurance, which provides a lump-sum payout if
he is diagnosed with another serious condition. It complements regular
life insurance by specifically addressing his health risks.
4. Tshivhase (56, Male, Teacher, Diabetes, Net Worth: R203,000,
Dependants: 0)
o Policy Recommendation: Final Expense Insurance
o Substantiation: Given his age, occupation, and medical condition
(diabetes), a final expense insurance policy is appropriate. It covers
funeral costs and other final expenses, ensuring that he leaves no
financial burden on others.
Assignment 2
Semester 2
2024
, Question 1
1.1 Appropriate Life Policy for Each Application
1. Presh (24, Female, Construction Worker, Net Worth: R560,000,
Dependants: 2)
o Policy Recommendation: Term Life Insurance
o Substantiation: As a young individual with dependants, a term life
insurance policy would provide financial security to Presh’s dependants
in the event of her premature death. This is an affordable option for a
construction worker, and the cover can be aligned with her net worth.
2. Premita (36, Male, Lawyer, Net Worth: R330,000, Dependants: 1)
o Policy Recommendation: Whole Life Insurance
o Substantiation: Given his profession and age, a whole life insurance
policy ensures lifelong coverage and builds cash value. This policy
would provide a safety net for his dependant, even beyond his working
years.
3. Kgabu (48, Male, Medical Doctor, Heart Attack, Net Worth: R1 million,
Dependants: 0)
o Policy Recommendation: Critical Illness Insurance
o Substantiation: Due to his previous heart attack, Kgabu should
consider critical illness insurance, which provides a lump-sum payout if
he is diagnosed with another serious condition. It complements regular
life insurance by specifically addressing his health risks.
4. Tshivhase (56, Male, Teacher, Diabetes, Net Worth: R203,000,
Dependants: 0)
o Policy Recommendation: Final Expense Insurance
o Substantiation: Given his age, occupation, and medical condition
(diabetes), a final expense insurance policy is appropriate. It covers
funeral costs and other final expenses, ensuring that he leaves no
financial burden on others.
