If you are interested in learning about the Absa mortgage insurance in South Africa, check out this guide.
This policy protects a mortgage lender in the event of default payments, disability, or death.
We will show you a few things you first have to understand about mortgage insurance.
What You Need To Know About Absa Mortgage Insurance
There are three types of mortgage insurance, namely, private mortgage insurance, qualified mortgage insurance premium, and mortgage title insurance.
A mortgage life insurance protects the heirs of the insured in case of death while owing mortgage payments.
The cover may come as a pay-as-you-go premium payment, or it may be capitalized into a lump sum payment at the time of origination.
The insurance is an assurance that your family will be financially protected by covering any outstanding debt or fee on your property should anything untoward happen to you.
These are the key relevant things you need to know about Absa mortgage insurance in South Africa.
Absa Mortgage Insurance
You need to have a mortgage loan for you to get this covered.
You have complete peace of mind and hope that your repayments will be well taken care of and that your family will still have a home even when you are gone.
Do not worry that you may not be able to carry on with your repayments after being badly injured or disabled, as the cover will take care of the remaining premiums.
You are flexible to change the amount you are insured for any time, any day, through the Absa activate app.
You are guaranteed benefits without the need to provide medical evidence if you want to increase the insured amount.
This is how the Absa mortgage insurance works in South Africa.
What Is Covered By This Policy
Your family is compensated with a lump sum payment equal to the insured amount you agreed on when you die.
You are compensated either for a natural or accidental death.
If mortgage repayment becomes impossible to maintain as a result of either temporary or permanent disability, Absa will cover that obligation for you.
The insurance will also cover your mortgage payments if you are diagnosed with a terminal illness.
The insurer will pay out an amount equal to your insured sum under your death benefit.
This is all covered by the Absa mortgage insurance in South Africa.