, ISR3702 Assignment 2 (COMPLETE ANSWERS)
Semester 2 2024 - DUE September 2024 ; 100%
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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)
Policy Options:
The policies considered for each applicant are based on individual risk
factors such as occupation, medical condition, net worth, and
dependants.
1. Presh (24, Female, Construction worker, Not stipulated
medical condition, Net worth: R560,000, 2 dependants)
o Suggested Policy: Whole Life Insurance or Term Life
Insurance.
o Reasoning: Presh works in a physically demanding job
(construction), which has higher occupational risks. She has
two dependants, making life insurance essential. Given her
younger age, a Whole Life policy could offer lifetime
coverage, or a Term Life policy could provide affordable
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