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 THAT HAS PASSED THE END DATE: 

Describe life insurance 
SAQA US ID UNIT STANDARD TITLE
8988  Describe life insurance 
ORIGINATOR
SGB Financial Services 
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
Passed the End Date -
Status was "Registered" 
2002-02-13  2004-08-11  SAQA 0540/02 
LAST DATE FOR ENROLMENT LAST DATE FOR ACHIEVEMENT
2005-08-11   2008-08-11  

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 is replaced by: 
US ID Unit Standard Title Pre-2009 NQF Level NQF Level Credits Replacement Status
114983  Describe life insurance  Level 3  NQF Level 03  Complete 

PURPOSE OF THE UNIT STANDARD 
This unit standard introduces the basic concepts of life insurance that all workers in the insurance industry ought to know.

The qualifying learners is capable of:
  • Knowing and understanding the concept of life insurance.
  • Identifying different products that a life insurance company markets.
  • Categorising life insurance according to type.
  • Recognising the long term nature of life insurance.
  • Recognising factors that affect the insurance premium.
  • Applying knowledge of customer profiles and risk to life insurance.
  • Illustrating information graphically.
  • Formulating questions to obtain information. 

  • LEARNING ASSUMED TO BE IN PLACE AND RECOGNITION OF PRIOR LEARNING 
    There is open access to this unit standard. Learners should be competent in communication and mathematical literacy at Level 2. 

    UNIT STANDARD RANGE 
    The typical scope of this unit standard is:
    1. Life policies, endowments, retirement annuities and income protection.
    2. Special risks that affect insurance premiums include socio-economic, location, hazardous and recreational pursuits.
    3. Risk categories are high, medium and low risk. 

    Specific Outcomes and Assessment Criteria: 

    SPECIFIC OUTCOME 1 
    Know and explain the concept of life insurance. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    1. The structure of a life insurance premium is illustrated graphically. 

    ASSESSMENT CRITERION 2 
    2. The difference in premium in relation to frequency of payment is compared using authentic examples. 

    ASSESSMENT CRITERION 3 
    3. The concepts of cover and break out are illustrated graphically. 

    ASSESSMENT CRITERION 4 
    4. Different terms associated with life insurance are understood and explained with reference to a specific policy. 

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

    ASSESSMENT CRITERION 6 
    6. The implications for a company of not being reinsured are explained using a particular example. 

    ASSESSMENT CRITERION 7 
    7. The role of the actuary is explained in terms of the development of insurance products and risk premium rates. 

    ASSESSMENT CRITERION 8 
    8. Automatic benefit and contribution increases are explained and an indication is given of the advantages and disadvantages of this practice. 

    ASSESSMENT CRITERION 9 
    9. The concept of surrender and loan value of a policy is explained with reference to a policy. 

    ASSESSMENT CRITERION 10 
    10. Indemnity and non-indemnity are compared as they apply in an insurance policy. 

    SPECIFIC OUTCOME 2 
    Know and explain the parties to an insurance contract. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    1. The concepts life insured, payer, beneficiary, policy owner and cessionary are described and illustrated in a diagram. 

    ASSESSMENT CRITERION 2 
    2. The difference between a collateral and an absolute cession are explained in terms of ownership of a ceded policy. 

    ASSESSMENT CRITERION 3 
    3. The information rights of each party to a contract are presented in a table and the consequence of providing information to the incorrect party are indicated with reference to case studies. 

    ASSESSMENT CRITERION 4 
    4. The obligations of the parties to a contract are presented in a table and the consequences of not meeting those obligations are indicated with reference to relevant legislation. 

    ASSESSMENT CRITERION 5 
    5. The advantages and disadvantages of life insurance are listed from the point of view of a policy holder. 

    ASSESSMENT CRITERION 6 
    6. The concept of insurable interest is explained with reference to a life policy and two examples are provided of what constitutes insurable interest. 

    SPECIFIC OUTCOME 3 
    Identify the different products that a life insurance company markets. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    1. The different insurance products such as life policies, endowments, retirement annuities and income protection are named with examples of each. 

    ASSESSMENT CRITERION 2 
    2. Products marketed as life insurance are researched and two similar products are
    compared in terms of security for the customer. 

    ASSESSMENT CRITERION 3 
    3. The investment portfolio of the different products is compared based on the volatility/risk profile of the portfolio. 

    ASSESSMENT CRITERION 4 
    4. The basis for the classification of a life policy is indicated according to its structure and purpose. 

    ASSESSMENT CRITERION 5 
    5. The risk element of term and whole life policies is compared and reasons are given for the difference in risk. 

    ASSESSMENT CRITERION 6 
    6. The cover type of a policy is identified by the amount allocated to risk and/or investment. 

    SPECIFIC OUTCOME 4 
    Recognise the factors that affect the insurance premium/contribution. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    1. Special risks that affect the insurance premium are named with examples. 

    ASSESSMENT CRITERION 2 
    2. The impact of the term of policy is explained with reference to the life cover premium. 

    ASSESSMENT CRITERION 3 
    3. The age at entry and gender of the life insured is explained in terms of the risk premium. 

    ASSESSMENT CRITERION 4 
    4. 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 5 
    Apply knowledge of customer profiles and risk to life insurance. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    1. Questions are asked to establish a basic customer profile based on needs. 

    ASSESSMENT CRITERION 2 
    2. The risk categories used in life insurance are named and an indication is given of the risk category most likely to apply to the customer. 

    ASSESSMENT CRITERION 3 
    3. The needs of the customer are matched to an insurance product. 

    ASSESSMENT CRITERION 4 
    4. A list is compiled indicating the advantages and disadvantages of selecting a particular life insurance product. 


    UNIT STANDARD ACCREDITATION AND MODERATION OPTIONS 
    This unit standard will be internally assessed by the provider and moderated by a moderator registered by INSQA or a relevant accredited ETQA. The mechanisms and requirements for moderation are contained in the document obtainable from INSQA, INSQA framework for assessment and moderation. 


    Critical Cross-field Outcomes (CCFO): 

    UNIT STANDARD CCFO IDENTIFYING 
    A learner is able to identify and solve problems by matching the needs of a customer to an insurance product. 

    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 using visual, mathematics and language skills 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 CCFO DEMONSTRATING 
  • 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.
  • Learners can demonstrate an understanding of the organisation as a set of related systems by identifying the key roles of specialist functions required in a long-term insurance organisation and their reliance on one another. 

  • UNIT STANDARD NOTES 
    This unit standard has been replaced by unit standard 114983, which is "Describe life insurance", Level 3, 3 credits, as from 11 Aug 2004 

    QUALIFICATIONS UTILISING THIS UNIT STANDARD: 
      ID QUALIFICATION TITLE PRE-2009 NQF LEVEL NQF LEVEL STATUS END DATE PRIMARY OR DELEGATED QA FUNCTIONARY
    Core  20177   National Certificate: Insurance  Level 3  NQF Level 03  Passed the End Date -
    Status was "Registered" 
    2004-10-10  Was INSETA until Last Date for Achievement 
    Core  20774   National Certificate: Insurance: Long Term: Risk Assessment  Level 4  NQF Level 04  Passed the End Date -
    Status was "Registered" 
    2004-12-05  Was INSETA until Last Date for Achievement 
    Core  20773   National Certificate: Long Term Insurance  Level 4  NQF Level 04  Passed the End Date -
    Status was "Registered" 
    2004-12-05  INSETA 
    Elective  48493   National Certificate: Financial Services: Wealth Management  Level 4  NQF Level 04  Passed the End Date -
    Status was "Registered" 
    2007-02-11  Was INSETA until Last Date for Achievement 


    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. Discovery Life Ltd 
    2. Faisit (Pty) Ltd 
    3. Intec College 
    4. Invuya Institute of Learning (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.