Life is full of uncertainties, and no one plans to die and leave their loved ones with a financial burden. While the future is unknown, you can help prevent your loved ones from facing additional financial difficulties when dealing with your death, which can already be distressing. You may be required to provide life cover before registration.
You can either accept FNB Life's competitive Life Assurance quote, called Mortgage Protection Plan, which covers the outstanding balance of the loan, or insure the value of the home loan with an acceptable underwriter. This is 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 may 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 rights of the cessionary take precedence 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 principal 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 from FNB Life, called Mortgage Protection Plan (MPP), will be provided for applicants aged 64 years or younger. There are certain instances where this may not be a requirement, but these will be specified in the 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 month's average outstanding home loan balance and reduce as the home loan is paid off.
However, you are 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.
