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SOUTH AFRICAN QUALIFICATIONS AUTHORITY 
REGISTERED UNIT STANDARD: 

Describe life insurance 
SAQA US ID UNIT STANDARD TITLE
114983  Describe life insurance 
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
8988  Describe life insurance  Level 3  NQF Level 03  Complete 

PURPOSE OF THE UNIT STANDARD 
This Unit Standard introduces some theoretical concepts related to life insurance and requires a wide range of knowledge and skills that will enable learners to be informed workers in the life insurance industry.

The qualifying learner is capable of:
  • Explaining long term insurance.
  • Identifying the different products that a life insurer markets.
  • Describing ancillary benefits.
  • Describing the role of intermediaries in marketing insurance. 

  • LEARNING ASSUMED TO BE IN PLACE AND RECOGNITION OF PRIOR LEARNING 
    Learners should be competent in Communication and Mathematical Literacy at NQF Level 2. 

    UNIT STANDARD RANGE 
    The typical scope of this Unit Standard is:
  • Intermediaries as defined in FAIS, including Consultants, Broker Consultants, Brokers, Franchises, Direct Marketing.
  • Legislation that impacts on long term insurance includes, but is not limited to, the Income Tax Act, the Pension Fund Act, The Long Term Insurance Act, Matrimonial Affairs Act, FAIS and FICA.
  • Ancillary benefits include, but are not limited to, income replacement and dread disease. 

  • Specific Outcomes and Assessment Criteria: 

    SPECIFIC OUTCOME 1 
    Explain long term insurance. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    The concept of long term insurance is explained and the different classes of long term insurance are compared with reference to different products. 

    ASSESSMENT CRITERION 2 
    Reasons why a customer should consider taking out a long term insurance policy are explained with reference to two different types of policy. 

    ASSESSMENT CRITERION 3 
    The impact of Legislation on Long Term Insurance is explained with examples. 

    SPECIFIC OUTCOME 2 
    Identify the different products that a life insurer markets. 

    ASSESSMENT CRITERIA
     

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

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

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

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

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

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

    SPECIFIC OUTCOME 3 
    Describe ancillary benefits. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    The concept of an ancillary benefit is explained with examples. 

    ASSESSMENT CRITERION 2 
    The affect 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 
    Reasons for the addition of ancillary benefits to life cover are explained and any age limitations are indicated with reference to particular products. 

    ASSESSMENT CRITERION 4 
    The affect 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 5 
    The effects of cancellations and additions of ancillary benefits on a policy are explained using an authentic policy as an illustration. 

    ASSESSMENT CRITERION 6 
    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 7 
    Reasons why ancillary benefits would not be paid are given with reference to case studies. 

    ASSESSMENT CRITERION 8 
    The limitations of automatic contribution and benefit increases are explained with reference to legislation. 

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

    ASSESSMENT CRITERIA
     

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

    ASSESSMENT CRITERION 2 
    Possible sources of new life insurance business are identified and an indication is given as to why the sources could be interested in a life insurance policy. 

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

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

    ASSESSMENT CRITERION 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. 


    UNIT STANDARD ACCREDITATION AND MODERATION OPTIONS 
    This Unit Standard will be internally assessed by the provider and moderated by a moderator registered by a relevant accredited ETQA or an ETQA that has a Memorandum of Understanding with the relevant accredited ETQA. 

    UNIT STANDARD ESSENTIAL EMBEDDED KNOWLEDGE 
    N/A 

    UNIT STANDARD DEVELOPMENTAL OUTCOME 
  • Learners can participate as responsible citizens of an insurance community by understanding and complying with the regulations of the LOA.
  • Learners can develop entrepreneurial opportunities when identifying new sources of life insurance business. 

  • UNIT STANDARD LINKAGES 
    N/A 


    Critical Cross-field Outcomes (CCFO): 

    UNIT STANDARD CCFO IDENTIFYING 
    Learners can identify the potential impact of changing technology and the Internet on the marketing of life insurance. 

    UNIT STANDARD CCFO COMMUNICATING 
    Learners can communicate effectively when explaining and giving examples to illustrate the concept indicated in the different assessment criteria. 

    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 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 replaces unit standard 8988, "Describe life insurance", Level 3, 2 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  49529   Further Education and Training Certificate: Long-Term Risk Assessment  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  48783   National Certificate: Financial Services  Level 2  NQF Level 02  Reregistered  2023-06-30  INSETA 
    Elective  49089   National Certificate: Financial Services  Level 3  NQF Level 03  Reregistered  2023-06-30  INSETA 
    Elective  48494   National Certificate: Financial Services Management  Level 3  NQF Level 03  Passed the End Date -
    Status was "Reregistered" 
    2012-06-30  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. ACADEMY OF LEARNING JHB CENTRAL 
    2. Alcari Learning Centre (Pty) Ltd 
    3. CKP Development Agency (Pty) Ltd. 
    4. Executive People Development Solutions (Pty) Ltd 
    5. Faisit (Pty) Ltd 
    6. Intec College 
    7. Intelligo Solutions Pty (Ltd) 
    8. Invuya Institute of Learning (Pty) Ltd 
    9. Masifunde Training Centre (Pty) Ltd 
    10. Outsurance Insurance Company Ltd 
    11. Sanlam Life Insurance Ltd 
    12. Sanlam Life Insurance Ltd. 
    13. The Institute of Health Risk Managers (Pty) Ltd 
    14. Umfolozi FET College - Central Office 



    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.