SAQA All qualifications and part qualifications registered on the National Qualifications Framework are public property. Thus the only payment that can be made for them is for service and reproduction. It is illegal to sell this material for profit. If the material is reproduced or quoted, the South African Qualifications Authority (SAQA) should be acknowledged as the source.
SOUTH AFRICAN QUALIFICATIONS AUTHORITY 
REGISTERED UNIT STANDARD: 

Indicate the scope of life insurance in South Africa 
SAQA US ID UNIT STANDARD TITLE
117146  Indicate the scope of life insurance in South Africa 
ORIGINATOR
SGB Insurance and Investment 
PRIMARY OR DELEGATED QUALITY ASSURANCE FUNCTIONARY
-  
FIELD SUBFIELD
Field 03 - Business, Commerce and Management Studies Finance, Economics and Accounting 
ABET BAND UNIT STANDARD TYPE PRE-2009 NQF LEVEL NQF LEVEL CREDITS
Undefined  Regular  Level 3  NQF Level 03 
REGISTRATION STATUS REGISTRATION START DATE REGISTRATION END DATE SAQA DECISION NUMBER
Reregistered  2018-07-01  2023-06-30  SAQA 06120/18 
LAST DATE FOR ENROLMENT LAST DATE FOR ACHIEVEMENT
2024-06-30   2027-06-30  

In all of the tables in this document, both the pre-2009 NQF Level and the NQF Level is shown. In the text (purpose statements, qualification rules, etc), any references to NQF Levels are to the pre-2009 levels unless specifically stated otherwise.  

This unit standard replaces: 
US ID Unit Standard Title Pre-2009 NQF Level NQF Level Credits Replacement Status
8996  Indicate the scope of life insurance in South Africa  Level 3  NQF Level 03  Complete 

PURPOSE OF THE UNIT STANDARD 
This unit standard introduces the basic concepts of life insurance that all employees in the life insurance industry ought to know.
  • The qualifying learner is capable of:
  • Explaining the concept of life insurance.
  • Explaining the roles of different parties to an insurance contract.
  • Recognising the factors that affect the insurance premium.
  • Explaining what life insurers do with their policy holders' money.
  • Describing the role of the Life Offices Association (LOA) 

  • LEARNING ASSUMED TO BE IN PLACE AND RECOGNITION OF PRIOR LEARNING 
    It is assumed that the Learner is competent in:
  • Mathematical Literacy at NQF Level 2
  • Communication at NQF Level 2 

  • UNIT STANDARD RANGE 
    The typical scope of this unit standard is:

    1. Life policies, endowments, retirement annuities, income protection and new generation products.
    2. Special risks that affect insurance premiums include education, socio economic, location, health, and hazardous occupational and recreational pursuits.
    3. Risk categories are high, medium and low risk.
    4. Investments include, but are not limited to bonds, cash, equities and property.
    5. The allocation of premium includes, but is not limited to, the allocation of premium to administration expenses, commission, risk, reserves, investment and claims. 

    Specific Outcomes and Assessment Criteria: 

    SPECIFIC OUTCOME 1 
    Explain the concept of life insurance. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    Different terms associated with life insurance are explained with reference to a specific policy. 

    ASSESSMENT CRITERION 2 
    The structure of pure risk/investment products and new generation products is compared in terms of the advantages and disadvantages of selecting a pure risk and new generation investment product. 

    ASSESSMENT CRITERION 3 
    The advantages and disadvantages of selecting a life insurance product are listed for a selected product. 

    ASSESSMENT CRITERION 4 
    The concepts of surrender, withdrawal and loan value of a policy are explained with reference to a selected policy and tax legislation. 

    ASSESSMENT CRITERION 5 
    The role of underwriters is explained with reference to the factors that influence the underwriting decision and the implications of non-disclosure for the individual and the underwriting decision. 

    SPECIFIC OUTCOME 2 
    Explain the roles of different parties to an insurance contract. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    The concepts life insured, payer, beneficiary, policy holder and cessionary are explained with examples of the rights to information of each party. 

    ASSESSMENT CRITERION 2 
    The obligations of the parties to a contract are tabulated and the consequences of not meeting those obligations are indicated with reference to relevant legislation. 

    ASSESSMENT CRITERION 3 
    The difference between a collateral and an absolute cession are explained in terms of ownership of a ceded policy. 

    ASSESSMENT CRITERION 4 
    The concept of insurable interest is explained with reference to offering life cover and two examples are provided of what constitutes insurable interest. 

    SPECIFIC OUTCOME 3 
    Recognise the factors that affect the insurance premium. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    Two life policies are compared with reference to the relationship between the purpose of the policy and the structure of the premium. 

    ASSESSMENT CRITERION 2 
    The impact of age, gender of the life insured and the term of policy is explained with reference to the associated risk and life cover premium. 

    ASSESSMENT CRITERION 3 
    Risks that affect the insurance premium are named with examples. 

    ASSESSMENT CRITERION 4 
    The difference in premium in relation to frequency of payment is compared with examples. 

    ASSESSMENT CRITERION 5 
    The affect of inflation on an insurance premium is explained with examples. 

    ASSESSMENT CRITERION 6 
    Automatic benefit and contribution increases are explained and an indication is given of the advantages and disadvantages of this practice. 

    ASSESSMENT CRITERION 7 
    The expense a life insurance company incurs when setting up a life insurance policy is explained with reference to the effect on a life premium. 

    SPECIFIC OUTCOME 4 
    Explain what life insurers do with their policy holders' money. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    The structure of a life insurance premium is illustrated graphically with reference to the effect of inflation on a policy 

    ASSESSMENT CRITERION 2 
    Different avenues of investment used by life insurance organisations are named with examples of how each impacts on risk. 

    ASSESSMENT CRITERION 3 
    The role of reinsurance in life insurance is explained with examples. 

    ASSESSMENT CRITERION 4 
    The social responsibility programme of a particular insurance organisation is identified with reference to the source of funding. 

    SPECIFIC OUTCOME 5 
    Describe the role of the Life Offices Association (LOA). 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    Reasons why the LOA code is necessary are explained and an indication is given of the implications if the LOA did not have such a code. 

    ASSESSMENT CRITERION 2 
    The LOA code of practice in respect of the replacement of a policy is explained with reasons why the code is necessary. 

    ASSESSMENT CRITERION 3 
    The LOA code of practice on the limitation of disability benefit is explained with an indication of why it excludes some events. 

    ASSESSMENT CRITERION 4 
    The LOA HIV protocol is explained and an indication is given of the affect of the protocol on marketing and administration. 


    UNIT STANDARD ACCREDITATION AND MODERATION OPTIONS 
    Accreditation for this Unit Standard shall be obtained from the relevant Education and Training Quality Assurance Body, through summative and formative assessment by a registered assessor.
  • Assessors must be registered as an Assessor with the relevant ETQA, or with an ETQA that has a Memorandum of Agreement with the relevant ETQA.
  • Moderators must be registered as assessors with the relevant ETQA, or with an ETQA that has a Memorandum of Agreement with the relevant ETQA.
  • Training providers must be accredited by the relevant ETQA or with an ETQA that has a Memorandum of Agreement with the relevant ETQA.

    Moderation should include both internal and external moderation where applicable. 

  • UNIT STANDARD ESSENTIAL EMBEDDED KNOWLEDGE 
    N/A 

    UNIT STANDARD DEVELOPMENTAL OUTCOME 
    Learners can participate as responsible citizens of the organisation in demonstrating an understanding of the information rights of the parties to a contract and the consequences of violating these rights. 

    UNIT STANDARD LINKAGES 
    N/A 


    Critical Cross-field Outcomes (CCFO): 

    UNIT STANDARD CCFO COLLECTING 
    Learners are able to collect, organise and evaluate information when comparing the advantages and disadvantages of automatic benefits and contribution increases. 

    UNIT STANDARD CCFO COMMUNICATING 
    Learners can communicate effectively when graphically presenting an illustration of the structure of a life insurance premium, the concept of cover and breakout and the parties to a policy. 

    UNIT STANDARD ASSESSOR CRITERIA 
    N/A 

    REREGISTRATION HISTORY 
    As per the SAQA Board decision/s at that time, this unit standard was Reregistered in 2012; 2015. 

    UNIT STANDARD NOTES 
    This unit standard has replaced 8996 which was "Indicate the scope of life insurance in South Africa", Level 3, 3 credits. 

    QUALIFICATIONS UTILISING THIS UNIT STANDARD: 
      ID QUALIFICATION TITLE PRE-2009 NQF LEVEL NQF LEVEL STATUS END DATE PRIMARY OR DELEGATED QA FUNCTIONARY
    Core  49649   Further Education and Training Certificate: Long-term Insurance  Level 4  NQF Level 04  Reregistered  2023-06-30  INSETA 
    Core  66609   Further Education and Training Certificate: Retail Insurance  Level 4  NQF Level 04  Reregistered  2021-06-30  As per Learning Programmes recorded against this Qual 
    Elective  49089   National Certificate: Financial Services  Level 3  NQF Level 03  Reregistered  2023-06-30  INSETA 
    Elective  49529   Further Education and Training Certificate: Long-Term Risk Assessment  Level 4  NQF Level 04  Reregistered  2023-06-30  INSETA 


    PROVIDERS CURRENTLY ACCREDITED TO OFFER THIS UNIT STANDARD: 
    This information shows the current accreditations (i.e. those not past their accreditation end dates), and is the most complete record available to SAQA as of today. Some Primary or Delegated Quality Assurance Functionaries have a lag in their recording systems for provider accreditation, in turn leading to a lag in notifying SAQA of all the providers that they have accredited to offer qualifications and unit standards, as well as any extensions to accreditation end dates. The relevant Primary or Delegated Quality Assurance Functionary should be notified if a record appears to be missing from here.
     
    1. Alcari Learning Centre (Pty) Ltd 
    2. CKP Development Agency (Pty) Ltd. 
    3. Executive People Development Solutions (Pty) Ltd 
    4. Faisit (Pty) Ltd 
    5. Intec College 
    6. Intelligo Solutions Pty (Ltd) 
    7. Invuya Institute of Learning (Pty) Ltd 
    8. Masifunde Training Centre (Pty) Ltd 
    9. Outsurance Insurance Company Ltd 
    10. Sanlam Life Insurance Ltd 
    11. Sanlam Life Insurance Ltd. 
    12. The Institute of Health Risk Managers (Pty) Ltd 



    All qualifications and part qualifications registered on the National Qualifications Framework are public property. Thus the only payment that can be made for them is for service and reproduction. It is illegal to sell this material for profit. If the material is reproduced or quoted, the South African Qualifications Authority (SAQA) should be acknowledged as the source.