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: 

Apply knowledge of business insurance to propose a Long-Term financial solution for a business entity 
SAQA US ID UNIT STANDARD TITLE
242589  Apply knowledge of business insurance to propose a Long-Term financial solution for a business entity 
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 6  Level TBA: Pre-2009 was L6  10 
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 does not replace any other unit standard and is not replaced by any other unit standard. 

PURPOSE OF THE UNIT STANDARD 
This Unit Standard focuses on the needs of a business that can be addressed with Long-Term insurance products. It is intended for Intermediaries, Financial Planners, Accountants, Lawyers, Broker Consultants, Sales Managers in Long-Term Insurance organisations and Key Individuals who oversee advice for people who report to them.

The qualifying learner is capable of:
  • Researching different types of business entity.
  • Analysing the Long-Term business insurance needs of an entity.
  • Valuating a business for Long-Term business insurance purposes.
  • Proposing a Long-Term business insurance solution. 

  • LEARNING ASSUMED TO BE IN PLACE AND RECOGNITION OF PRIOR LEARNING 
    It is assumed that learners are competent in Communication and Mathematical Literacy at NQF Level 4 and are working towards or have a Level 5 Financial Services Qualification or equivalent. 

    UNIT STANDARD RANGE 
    The typical scope of this Unit Standard is:
  • Business entities include sole proprietor, incorporated, closed corporations, partnerships, public and private companies and family companies.
  • Possible Long-Term insurance solutions include, but are not limited to, loan account cover, loan account redemption plans, buy and sell agreements, surety, deferred compensation, preferred compensation and key person insurance.
  • Information includes, but is not limited to, continuity of business, key person, preferred and deferred compensation, business contingency plan and sinking fund.
  • The business insurance plan includes, but is not limited to, contracts, ownership of policy, impact on accounting practice, amendments or additions to existing contracts and funding options.
  • Trigger events include, but are not limited to, death, disability and retirement.
  • Tax includes income tax and CGT. 

  • Specific Outcomes and Assessment Criteria: 

    SPECIFIC OUTCOME 1 
    Research different types of business entity. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    The different types of business entity that are legal in South Africa are researched with reference to the characteristics of each and the implications for Long-Term insurance. 

    ASSESSMENT CRITERION 2 
    The ownership structure of an entity is represented graphically and an indication is given of the implications of trigger events on owners or directors. 

    SPECIFIC OUTCOME 2 
    Analyse the Long-Term business insurance needs of an entity. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    The financial statements of an entity are analysed to determine the risk areas of the business that can be covered by Long-Term insurance. 

    ASSESSMENT CRITERION 2 
    All relevant documents are analysed and questions are asked to elicit information and uncover all the potential Long-Term insurance needs of the business. 

    SPECIFIC OUTCOME 3 
    Valuate a business for Long-Term business insurance purposes. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    Different models used to valuate a business are researched and an indication is given of when each is appropriate. 

    ASSESSMENT CRITERION 2 
    A model is applied to a selected business entity to determine the value. 

    SPECIFIC OUTCOME 4 
    Propose a Long-Term business insurance solution. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    A solution to address each of the long-Term business insurance needs is proposed and motivated for a selected entity. 

    ASSESSMENT CRITERION 2 
    The tax and estate duty implications of each of the proposed Long-Term business insurance solutions are explained for the proposed solution. 

    ASSESSMENT CRITERION 3 
    The implementation of the Long-term business insurance plan is explained to the client. 


    UNIT STANDARD ACCREDITATION AND MODERATION OPTIONS 
  • Anyone assessing a candidate against this Unit Standard must be registered as an assessor with the relevant ETQA or ETQA where a Memorandum of Understanding (MOU) exists with the relevant ETQA.
  • Any institution offering learning that will enable achievement of this Unit Standard must be accredited as a provider through the relevant ETQA or ETQA where a Memorandum of Understanding (MOU) exists with the relevant ETQA.
  • Moderation of assessment will be overseen by the relevant ETQA according to the moderation guidelines and the agreed ETQA procedures. 

  • UNIT STANDARD ESSENTIAL EMBEDDED KNOWLEDGE 
    N/A 

    UNIT STANDARD DEVELOPMENTAL OUTCOME 
    N/A 

    UNIT STANDARD LINKAGES 
    N/A 


    Critical Cross-field Outcomes (CCFO): 

    UNIT STANDARD CCFO IDENTIFYING 
    The learner is able to identify and solve problems in which responses show that responsible decisions using critical and creative thinking have been made in proposing a Long-Term business insurance solution. 

    UNIT STANDARD CCFO COLLECTING 
    The learner is able to collect, organise and critically evaluate information in analysing the Long-Term business insurance needs of an entity. 

    UNIT STANDARD CCFO COMMUNICATING 
    The learner is able to communicate effectively using valuating a business and proposing and motivating a Long-Term business insurance solution. 

    UNIT STANDARD CCFO DEMONSTRATING 
    The learner is able to see the world as a set of related systems in analysing the risks areas in a business entity and proposing a business insurance solution. 

    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 
    Search words: business insurance, business assurance, business entities, key person insurance, buy and sell, surety, loan account, deferred compensation, preferred compensation. 

    QUALIFICATIONS UTILISING THIS UNIT STANDARD: 
      ID QUALIFICATION TITLE PRE-2009 NQF LEVEL NQF LEVEL STATUS END DATE PRIMARY OR DELEGATED QA FUNCTIONARY
    Elective  66611   National Certificate: Wealth Management  Level 5  Level TBA: Pre-2009 was L5  Reregistered  2021-06-30  As per Learning Programmes recorded against this Qual 


    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. AFRICAN UNION SKILLS DEVELOPMENT PTY LTD 
    2. ALCARI 233 CC T/A ALCARI (Eversdal)(TP) 
    3. Boland Public FET College - Central Office 
    4. CKP Development Agency (Pty) Ltd. 
    5. COLLEGE OF CAPE TOWN 
    6. College of Cape Town - Central Office 
    7. False Bay College 
    8. Intec College 
    9. Masifunde Training Centre (Pty) Ltd 
    10. North Link College 
    11. Old Mutual Life Assurance Company South Africa 
    12. Ray Strodl Consulting (Pty) Ltd 
    13. Ripple Effect 4 (Pty) Ltd 
    14. Sanlam Life Insurance Ltd 
    15. Sanlam Life Insurance Ltd. 
    16. South Cape College 
    17. South Cape Public FET College - Central Office 
    18. The Institute of Health Risk Managers (Pty) Ltd 
    19. Umfolozi FET College - Central Office 
    20. Universal Healthcare Services (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.