Life Assurance
Life is full of uncertainties, and no one plans to die and leave their loved ones with a financial burden. In the absence of knowing what the future may hold, you can prevent that your loved ones face additional financial troubles when dealing with your death, as this in itself will be distressing. You may be required to supply Life Cover prior to the registration.
You have the choice of either accepting FNB Life's competitive Life Assurance quote called Mortgage Protection Plan which will cover the outstanding balance of the loan, or you could insure the value of the home loan with an acceptable underwriter, subject to the policy having sufficient cover to pay off the outstanding balance, or registered bond amount, at the time of cession. Please note that FNB can reject any proposed credit insurance if it is not suitable.
Our conditions stipulate that the policy must
- Be ceded to FNB with outright cession rights (if a policy is ceded, the right of the cessionary takes precedent and will be paid before any payments to nominated beneficiaries)
- Contain the start date and total amount of cover
- Ensure that, in the case of joint account holders, all bond applicants have Life Assurance to the value of the total registered bond amount
Mortgage Protection Plan (MPP)
Where the principle loan amount is equal to or less than R1 000 000, the maximum cover will be capped at R1 000 000 per property, per applicant, with a cumulative maximum of R2 000 000 per applicant. FNB Home Loans will require Life Cover as a condition of the loan being granted on new and further loans for joint or individual applicants.
A competitive quote for applicants aged 64 years or younger from FNB Life, called Mortgage Protection Plan (MPP) will be supplied. There are certain instances where this will not be a requirement, but this will be specified in your conditions of the loan being granted.
The MPP covers the outstanding home loan amount in the event of your untimely death or permanent disability. The premiums payable for MPP are dependent on the previous months average outstanding home loan balance and reduces as the home loan is paid off.
You are however entitled to provide your own policy to be ceded to the Bank, subject to the policy having sufficient cover to pay off the outstanding balance, or registered bond amount, at the time of cession.
