FNB Life Assurance Has an Interesting Product
FNB Life Assurance With head offices in Johannesburg, FNB is the oldest bank in South Africa. It opened for business in 1838. Today it trades as a division of FirstRand Bank Limited.
Apart from the life assurance they offer to cover your mortgage in the event of your death, they offer funeral cover policies as well. FNB Life Assurance covers the outstanding amount you owe the bank on your home loan. In the event of you being unable to pay your monthly premiums through untimely death, this policy should cover the full amount still owing. In the event of permanent disability, dread disease or even retrenchment, FNB pays out a lump sum following a claim.
FNB Life Assurance Details
FNB Life Assurance offered by the banks for your mortgage,is usually more expensive than the life cover offered by other service providers. Generally speaking, ordinary life insurance is less than 25% of that sold by banks. You may cede an existing policy to the bank to cover the amount of the loan. Often these policies do not supply retrenchment cover. This is a requirement of the bank for your home loan.
FNB has come up with a product that has cut these previously expensive premiums on life cover by up to 50%. They call it their Mortgage Protection Plan.
FNB Life Asssurance – Features of the Mortgage Protection Plan
- Mortgage protection is compulsory on application for a home loan.
- It is only available to FNB loan account holders.
- Itprovides cover for premature death, for life.
- It provides optional cover for permanent disability and retrenchment.
- This cover will pay out a lump sum equal to 5% of the life cover, up to R100 000.They also waive the premiums for 6 months. This lump sum only pays out once. It reduces the life cover by the amount paid out
- There are certain exemptions and qualifications to this payout, based on a points system.
- Llimited to applicants younger than 64.
- Premiums depend on age, gender,income, education, whether you are a smoker or not, and your general health.
- A medical examination may be required, as well as an HIV blood test. This depends on your health risk profile, as well as the amount of cover applied for.
- The premiums for this plan are dependant on the balance on your home loan. As the loan is paid off, so your premiums also automatically decrease.
- The company reviews premiums annually.
- Premiums will probably be included in your bond installments.
- The maximum cover will be capped at R1 000 000 if the loan is R1 000 000 or less. The maximum cover per property per applicant is R2 000 000.
- The Mortgage Protection Plan will automatically cede your cover to FNB, to cover the outstanding loan in the event of your untimely death.
Property is an investment. Investments need to be protected. Once you have this Mortgage Protection Plan in place, you can relax. Your home will be paid off if you pass away prematurely. This ensures the family left behind will have a roof over their heads from a home which is fully paid up.
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All info was correct at time of publishing