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: 

Indicate the scope of life insurance in South Africa 
SAQA US ID UNIT STANDARD TITLE
8996  Indicate the scope of life insurance in South Africa 
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  3 
REGISTRATION STATUS REGISTRATION START DATE REGISTRATION END DATE SAQA DECISION NUMBER
Passed the End Date -
Status was "Registered" 		 2002-02-13  2004-12-02  SAQA 0540/02 
LAST DATE FOR ENROLMENT LAST DATE FOR ACHIEVEMENT
2005-12-02   2008-12-02  

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
117146  Indicate the scope of life insurance in South Africa  Level 3  NQF Level 03  4   

PURPOSE OF THE UNIT STANDARD 
This unit standard builds on the concepts introduced in the unit standard, Describe life insurance. It introduces some theoretical concepts and requires a wide range of knowledge and skills that will enable learners to be informed workers in the life industry.

The qualifying learner is capable of:
  • Explaining long term insurance and concepts related to long-term insurance.
  • Describing ancillary benefits that may be added to a life cover.
  • Indicating the role of intermediaries in life insurance.
  • Explaining what life insurers do with policyholders' money.
  • Describing the role of the Life Offices Association. 
    		•

    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 NQF Level 2. Learners should:
  • Understand the basic concept of life insurance.
  • Know the types of life insurance and some of the products marketed by life insurance organisations.
  • Recognise factors that affect the premium of a life policy. 
    		•

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

    Intermediaries: Consultants, Broker Consultants, Brokers, Franchises, Direct Marketing. 

    Specific Outcomes and Assessment Criteria: 

    SPECIFIC OUTCOME 1 
    Explain long term insurance. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    1. An explanation is given as to what constitutes long term insurance and the different classes of long term insurance are compared with reference to different products marketed. 

    ASSESSMENT CRITERION 2 
    2. Reasons are given to explain why a customer should consider taking out a long term insurance policy using two different types of policy as an illustration. 

    ASSESSMENT CRITERION 3 
    3. The relationship between life insurance and legislation is explained with reference to the Income Tax Act and its application to life policies. 

    ASSESSMENT CRITERION 4 
    4. The Long Term Insurance Act is identified as the legislation governing life insurance and the application to life policies is explained with an indication of the consequences of breaching the Act. 

    ASSESSMENT CRITERION 5 
    5. The Pension Fund Act is identified as legislation governing life insurance and the application to life policies is explained with an indication of the consequences of breaching the Act. 

    SPECIFIC OUTCOME 2 
    Describe ancillary benefits. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    1. The concept of an ancillary benefit is explained and examples are given to illustrate the concept. 

    ASSESSMENT CRITERION 2 
    2. The effect of a premium increase on the addition of an ancillary benefit after the inception date of a contract is explained with reference to legislation. 

    ASSESSMENT CRITERION 3 
    3. The reasons for the addition of disability to life cover is explained with an example of the value it adds to a policy. 

    ASSESSMENT CRITERION 4 
    4. Reasons why disability would/would not be paid are given with reference to case studies. 

    ASSESSMENT CRITERION 5 
    5. The limitations of automatic contribution and benefit increases are explained with reference to legislation. 

    ASSESSMENT CRITERION 6 
    6. The reasons for the inclusion of dread disease in life cover is explained in terms of cover for medical conditions. 

    ASSESSMENT CRITERION 7 
    7. Age limitations on ancillary benefits marketed by an organisation are indicated with reference to particular products. 

    ASSESSMENT CRITERION 8 
    8. The effect on life cover after a claim against an ancillary benefit is explained in terms of acceleration of death benefits and additional benefit payments. 

    ASSESSMENT CRITERION 9 
    9. The effects of cancellations and additions of ancillary benefits on a policy are explained using an authentic policy as an illustration. 

    SPECIFIC OUTCOME 3 
    Know and understand concepts related to long-term insurance. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    1. The implications of not paying a policy premium and ways in which a policy owner who can no longer pay premiums can be helped are explained for different case studies. 

    ASSESSMENT CRITERION 2 
    2. The concept of a withdrawal is explained with reference to requirements for withdrawal and tax legislation. 

    ASSESSMENT CRITERION 3 
    3. The concept of contractual capacity is explained and an indication is given of who may not enter into a contract and the rights of a policy holder to effect changes or disperse money 

    ASSESSMENT CRITERION 4 
    4. The effect of inflation on a policy is explained with reference to the Consumer Price Index (CPI). 

    SPECIFIC OUTCOME 4 
    Describe the role of intermediaries in marketing life insurance. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    1. Different types of intermediaries are identified and compared as players in the long- term insurance market. 

    ASSESSMENT CRITERION 2 
    2. Sources of new life insurance business are indicated with reasons why the sources
    could be interested in a life insurance policy. 

    ASSESSMENT CRITERION 3 
    3. The role of intermediaries in the life insurance industry is examined with reference to current legislation. 

    ASSESSMENT CRITERION 4 
    4. The advantages and disadvantages to the customer of using or not using an intermediary are listed and an indication is given of how the Internet and other forms of direct marketing could change the relationship. 

    ASSESSMENT CRITERION 5 
    5. The relationship between the intermediary and an insurance organisation is described from the perspective of the life insurance industry. 

    ASSESSMENT CRITERION 6 
    6. Legislation governing the role of intermediaries in life insurance is named and the implications for people providing financial advice are explained in terms of individual and company responsibility. 

    SPECIFIC OUTCOME 5 
    Explain what life insurers do with their policy holders' money. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    1. The allocation of premium to administration expenses, commission, risk, reserves, investment and claims is explained with reference to an annual report. 

    ASSESSMENT CRITERION 2 
    2. Different avenues of investment used by life insurance organisations are named and compared to investments in other financial services providers. 

    ASSESSMENT CRITERION 3 
    3. Treaty reassurance and facultative insurance as they apply to life insurance are explained and compared with examples of each. 

    ASSESSMENT CRITERION 4 
    4. Identify the social responsibility programme of a particular insurance organisation and investigate the source of funding. 

    SPECIFIC OUTCOME 6 
    Describe the role of the Life Offices Association (LOA). 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    1. The reasons for the LOA index are explained and an indication is given of the type of information contained in the index. 

    ASSESSMENT CRITERION 2 
    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 
    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 
    4. Reasons why the code is necessary are explained with an indication of the implications if the LOA did not have such a code. 


    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 
  • Learners can identify the advantages and disadvantages of using science and technology in the direct marketing of life insurance.
  • Learners can develop entrepreneurial opportunities when identifying new sources of life insurance business. 
    		•

    UNIT STANDARD CCFO COMMUNICATING 
    Learners can communicate effectively using visual, mathematics and language skills when explaining and giving examples to illustrate the concept of ancillary. 

    UNIT STANDARD CCFO SCIENCE 
    Learners can become socially sensitive and aware through researching the social responsibility programmes of a particular insurance organisation. 

    UNIT STANDARD CCFO DEMONSTRATING 
    Learners can demonstrate an understanding of the world as a set of related systems by explaining the relationship between life insurance and legislation governing the industry. 

    UNIT STANDARD CCFO CONTRIBUTING 
    Learners can participate as responsible citizens of an insurance community by understanding and complying with the regulations of the LOA. 

    UNIT STANDARD NOTES 
    This unit standard has been replaced by 117146, "Indicate the scope of life insurance in South Africa", Level 3, 4 Credits. 

    QUALIFICATIONS UTILISING THIS UNIT STANDARD: 
      ID QUALIFICATION TITLE PRE-2009 NQF LEVEL NQF LEVEL STATUS END DATE PRIMARY OR DELEGATED QA FUNCTIONARY
    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  48494   National Certificate: Financial Services Management  Level 3  NQF Level 03  Passed the End Date -
    Status was "Reregistered"     		 2012-06-30  INSETA 
    Elective  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 
    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.
     
    NONE 


    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.