Discovery Life and bond

[Dolby]

Years back when I bought a property, I was just signed documents to get it all done. I ended up with Discovery Life insurance that I pay a few hundred rand to and selected my brother as a beneficiary.

Now, I'm signing a new bond and going through finances and this may be a silly question, but what is Discovery Life?
Is it a set figure the value of the bond that gets paid to the bank on my death to cover the debt?
If so, why select my brother as a beneficiary? Or is this if something happens in 15 years and the bond is small?


I will phone them - but wondering if anyone here has?

 

[Roo!]

It's Discovery's Life Insurance (as opposed to their medical aid).

Debtors are always serviced first from the estate, so listing your own beneficiaries in essence means "give these people their proportional value once all debtors are serviced".

 

[Dolby]

Thanks.

I just want to pay off the value of my homeloan should something happen, so not really a fixed amount but rather whatever the value is. The bank says it is a requirement (which I understand) but I really don't want to go through the bank.

 

[pinball wizard]

The bank says it is a requirement (which I understand) but I really don't want to go through the bank.

Life cover is a requirement when obtaining a homeloan, and as with homeowners insurance does not have to be taken via the bank offering the loan. In most cases proper life insurance companies premiums and benefits (in terms of converting from term cover to whole life cover and so on) are better than the options provided by the bank.