Observation

Majority of the candidates attempted this question, however, the performance was poor as most candidates could not explain features of life assurance.

Some of the responses expected from the candidates were:

Five features of life assurance:

(a)  Long term insurance contract: These are contracts that run for a period of not less than five years. This class of insurance is regarded as a long term insurance contract
(b) Level Premium: This is the payment of the same amount throughout the period of insurance;
(c)  Surrender value: This is the amount payable to the policy holder who wishes to discontinue with the policy before its maturity; 
(d) Paid-up Policies: This is an alternative to surrender value whereby the premiums paid are used to buy cover on a reduced sum assured payable at the maturity of the policy instead of terminating the policy.;
(e)  With Profit Policies: this allows the policyholder to partake in the profit realized by the insurer from the investment of the premium received. However, life policies issued with profit pays higher premium;
(f)  State Recognition: This is in area of tax relief granted to the policyholders as an inducement for taking life policies.