FNB bond life insurance

Tman543

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Joined
Jun 23, 2020
Messages
188
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?
Yes same here, earlier in the year, I requested that they re-evaluate this said it would take 2 days to process by the risk department then it goes back to the credit department to draw up an new offer so +-3-4days, and that's not even guaranteeing that the outcome would be different
 

Pineapple Smurf

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Aug 2, 2016
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37,147
1,5million
That is crazy
R1500 life cover for a R1.5m bond
And mine at FNB is R250 for a R400k bond
I did put down the extra R175k cash as the apartment was R575k. And mine was optional, so for R250 I took it

Something doesn't sound right there at FNB, go chat to them about it
 

Tman543

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Jun 23, 2020
Messages
188
Just to point out I had an offer from FNB on an OTP that fell through for 1.6m that didn't require Life Insurance, disability and Retrenchment insurance

Next offer for about the same price on a different OTP required it. About 650/pm for Life Insurance, disability and Retrenchment insurance. Does it make sense? Same area, same price, different requirements.

This was the requirement in the FNB quote

1626937023202.png
 

Hemi300c

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Dec 15, 2009
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23,455
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?
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.

This is illegal in terms of FAIS and FICA

Never take insurance out through a lender!!!!!!!
 

Supercarfan

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Mar 15, 2019
Messages
168
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!
Apologies, I misinterpreted your comments. Thought you were saying that FNB requires life insurance as a general rule.
 

Pineapple Smurf

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37,147
And remember this, You pay interest on your Life Cover for 20 years.
At the end of the month my debit order goes off, FNB then adds the R250 life cover to my outstanding amount, and then.
If they just deduct R250 from Cheque Account Im cool with that
But they add the R250 to my outstanding bond, and this way my bond goes up R250 ea month meaning I am paying interest on it.
Very sneaky

In your case R1500 a month over 240 payments and you're paying interest on it, it can add up to quite a bit.
 

PsYTraNc3

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Jan 4, 2012
Messages
3,400
I'm on my second bond with FNB in the past 3 years.

First one - under R1m and required life insurance.
You are however not forced to take cover with FNB but if cover is taken from another provider, it has to be ceeded to FNB.
They have a form that needs to be filled out and signed to ceed the cover to FNB.
That is what I ended up doing and cancelled it when the house was sold.

My second bond this year is for over R1m and does not require life insurance.
 
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maxxis

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Joined
Jul 26, 2007
Messages
372
Bond with Capitec and they required life insurance from both my partner and i.

Ceded a liberty policy for R300k less than the bond amount and they were happy.
 

zerocool2009

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Sep 4, 2009
Messages
6,440
I'm on my second bond with FNB in the past 3 years.

First one - under R1m and required life insurance.
You are however not forced to take covert with FNB but if cover is taken from another provider, it has to be ceeded to FNB.
They have a form that needs to be filled out and signed to ceed the cover to FNB.
That is what I ended up doing and cancelled it when the house was sold.

My second bond this year is for over R1m and does not require life insurance.

Exactly what I said. Under its a required, over R1kk not
 

Brawler

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Joined
May 23, 2006
Messages
10,591
I'm busy signing a bond with FNB.
2.2m property, bond for 1.7m.

Looks like I do not need credit life insurance. Whats odd is the Bond Originator keeps on telling me I do but it is not in the agreement.
1627815031297.png
 

Mike Hoxbig

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Apr 25, 2010
Messages
37,515
I'm busy signing a bond with FNB.
2.2m property, bond for 1.7m.

Looks like I do not need credit life insurance. Whats odd is the Bond Originator keeps on telling me I do but it is not in the agreement.
View attachment 1118218
Forget what the originator says, the only thing that matters is what the offer says.

That said it's generally a good idea to take out a cheap policy to cede against the bond to avoid the property getting repossessed, especially if you have dependents...
 

Brawler

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Joined
May 23, 2006
Messages
10,591
Forget what the originator says, the only thing that matters is what the offer says.

That said it's generally a good idea to take out a cheap policy to cede against the bond to avoid the property getting repossessed, especially if you have dependents...
yeah that's the plan.
I'm trying to get a quote from FNB but the website keeps on throwing an error.
Discovery (my med aid) is R700 odd for comprehensive but then they want me to take vitality as well which I am not keen on.
 
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