Are you considering Absa bond insurance in South Africa but do not know how it works? This is the right place for you! Read through this guide to learn about it.
This is basically a home loan protector that protects your home even when you are not there.
The cover gives you real security, and you are assured that your family will live in a paid-off house in the event of terminal illness, disability, or even death.
We will first show you why you need this insurance cover.
Why You Need A Bond Insurance
If you have a home loan, you need the cover to protect you from uncertainties that may hinder you from continuing to pay for the loan.
You need the cover if your home loan is less than R1 million.
This cover is meant for you if you want to protect your family financially by covering any outstanding debt on your property when you are not incapacitated.
The cover also provides financial security for your loved ones.
These are some reasons you need Absa bond insurance in South Africa.
What You Need To Know About Absa Bond Policy
You need to have enough funds in your account every month to keep your policy active.
The service is provided without the benefit of financial advice or financial need analysis.
You, therefore, need to study the policy keenly and understand the terms.
You are given a 30 days obligation period to read through and test the policy, and if you don’t like it, your premiums will be refunded.
These are the key things to note about the Absa bond insurance in South Africa.
Absa Bond Insurance
The insurance covers your home repayments in the event of death, disability, or terminal illness.
With the death benefit, your family will be consoled with a lump sum payment that equals the insured amount that you agreed upon.
This benefit covers both accidental and natural death.
The permanent and temporary disability benefit ensures that the insurance company takes care of your home loan repayment.
If you want to increase the amount your home loan is covered for, you can only increase it in the first four years on your policy anniversary.
You are not required to provide proof of health to increase the amount covered.
When you are diagnosed with a terminal illness, you do not have to worry about your home loan as the insurance will pay off the amount you had insured.
This is how the Absa bond insurance works in South Africa.