Exam (elaborations)
ISR3702 Assignment 2 Semester 2 2024
- Course
- Life Insurance (ISR3702)
- Institution
- University Of South Africa
ISR3702 Assignment 2 Semester 2 2024 QUESTIONS WITH ANSWERS
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[Date]ISR3702 Assignment
2 Semester 2 2024
QUESTIONS AND ANSWERS
, ISR3702 Assignment 2 Semester 2 2024
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)
1.2 Classify each of the applications into an underwriting class and substantiate
your answer. (22)
1.3 Name one variable that is missing from the applications but that could be used
to answer question 1.2 above. (2)
Question 1.1 Indicate an appropriate life policy or policies for each
application and substantiate your answer (22 marks)
Here’s a detailed explanation of potential policies based on the typical
characteristics of applicants:
Example Applicant A: A young, single professional in their mid-20s with no
dependents
Appropriate Policy: Term Life Insurance
• Justification: Term life insurance is the most affordable option for younger
individuals, especially those without dependents. It provides temporary
coverage, which might be suitable for someone without long-term financial
obligations. It ensures protection for a specific period (e.g., 10 or 20 years)
in case of premature death. Since Applicant A has no dependents, they don’t
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