FNB bond life insurance

aggressiveGrey

Senior Member
Joined
Nov 11, 2013
Messages
518
So we got accepted by 4 banks, on a bond.

Absa and FNB had the best rates.

Was going to go with FNB because I bank with them but then they had a clause that it's subject to their Life Insurance, covering myself and my partner for the full bond amount, total and extra R1500 per month.

Annoyed me senseless as they the only bank that forced this.

Anyone else have this problem with FNB and their huge life cover on a bond application?
 

3WA

Honorary Master
Joined
Sep 25, 2012
Messages
13,152
If that’s the only problem with their offer, ask them if they’ll accept equivalent life cover from another company.
 

Snyper564

Executive Member
Joined
Oct 1, 2008
Messages
9,645
So we got accepted by 4 banks, on a bond.

Absa and FNB had the best rates.

Was going to go with FNB because I bank with them but then they had a clause that it's subject to their Life Insurance, covering myself and my partner for the full bond amount, total and extra R1500 per month.

Annoyed me senseless as they the only bank that forced this.

Anyone else have this problem with FNB and their huge life cover on a bond application?
All bonds require life cover if im not mistaken
 

WollieVerstege

Senior Member
Joined
Jun 1, 2016
Messages
828
Far as I know the banks are no longer allowed to force you to take their insurance. As long as you have cover in place and it can be ceded to the bank I don't see what their problem could be.
R1500pm life cover is about R10m?
 

Pineapple Smurf

Pineapple Beer Connoisseur
Joined
Aug 2, 2016
Messages
39,599
Holy ****
How much is your Bond?
I am with FNB as well
Bond since 2010
Life cover is R250 for a R400k bond

EDIT: Oh and it is optional when I took it out so I did
 

zerocool2009

Executive Member
Joined
Sep 4, 2009
Messages
6,741
The national credit act is now in place

You need income protector, disability etc

And of you are married, your wife too! To cover if something happend
 

zerocool2009

Executive Member
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Sep 4, 2009
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6,741
I know fnb had a rule, dont know if its forced anymore...

If you buy for less than R1kk, its compulsory.
 

MGMT

Well-Known Member
Joined
Apr 21, 2010
Messages
114
So we got accepted by 4 banks, on a bond.

Absa and FNB had the best rates.

Was going to go with FNB because I bank with them but then they had a clause that it's subject to their Life Insurance, covering myself and my partner for the full bond amount, total and extra R1500 per month.

Annoyed me senseless as they the only bank that forced this.

Anyone else have this problem with FNB and their huge life cover on a bond application?
FYI I'm pretty sure the Insurance Act states if you need insurance as a part of a contract, you have the right to chose an insurance company of your choosing.
 

zerocool2009

Executive Member
Joined
Sep 4, 2009
Messages
6,741
FYI I'm pretty sure the Insurance Act states if you need insurance as a part of a contract, you have the right to chose an insurance company of your choosing.

Correct! I confirmed now with FNB’s HL department, your own cover can be seeded too
 

das Toktokken

Honorary Master
Joined
Jul 18, 2008
Messages
53,981
So we got accepted by 4 banks, on a bond.

Absa and FNB had the best rates.

Was going to go with FNB because I bank with them but then they had a clause that it's subject to their Life Insurance, covering myself and my partner for the full bond amount, total and extra R1500 per month.

Annoyed me senseless as they the only bank that forced this.

Anyone else have this problem with FNB and their huge life cover on a bond application?
Ask them if you can get your own? You should have life insurance, but they shouldn't be prescribing the product unless you request it.
 

Drifter

Honorary Master
Joined
Dec 19, 2012
Messages
21,053
The national credit act is now in place

You need income protector, disability etc

And of you are married, your wife too! To cover if something happend
You dont need that. You need building insurance, life assurance to cover the bond is optional.
 

zerocool2009

Executive Member
Joined
Sep 4, 2009
Messages
6,741
You dont need that. You need building insurance, life assurance to cover the bond is optional.

And if you are married, and die... and no life cover, and the bank takes back the property?

Its all about risk! But i know fnb (R1kk or below), and single, not needed, as you say optional
 

zerocool2009

Executive Member
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Sep 4, 2009
Messages
6,741
Its actually!

Just read the contract requirements. If you want to use Fnb, you need to provide what they ask. Simple as that
 

Supercarfan

Well-Known Member
Joined
Mar 15, 2019
Messages
242
Its actually!

Just read the contract requirements. If you want to use Fnb, you need to provide what they ask. Simple as that
I’m sure your contract with FNB states that, but mine doesn’t. Just because you agreed to a set of terms doesn’t mean they universally apply those requirements to everyone.
 

Drifter

Honorary Master
Joined
Dec 19, 2012
Messages
21,053
And if you are married, and die... and no life cover, and the bank takes back the property?

Its all about risk! But i know fnb (R1kk or below), and single, not needed, as you say optional
If you donat have credit risk life cover at least, you are just daft.
 

zerocool2009

Executive Member
Joined
Sep 4, 2009
Messages
6,741
I’m sure your contract with FNB states that, but mine doesn’t. Just because you agreed to a set of terms doesn’t mean they universally apply those requirements to everyone.

I totally agree with you! I have multiple bonds, and zero life cover required in my contracts.

As I am saying, if they state it, do it or buy cash!
 
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