Mortgage protection plan vs Life cover

[WR10]

Hi all,

I received a final quotation from my bank which includes a premium for Mortgage protection.

what is the differences if you have a cover of that sort?

 

[Pearson6]

Well the difference is that you will be paying interest on the mortage protection as it is worked into your bond installments but I am speaking under correction a few of the guys that I work with explained that too me.

 

[Dre31]

This article explains it well - getting a bundled deal may well end up costing more due to the lack of competition. http://www.btimes.co.za/97/1221/btmoney/money1.htm

 

[ToxicBunny]

Keep as much away from your bond as possible.... and the Life cover, is not mandatory, neither is "mortgage" protection.

 

[Dre31]

Mortgage Cover

Keep as much away from your bond as possible.... and the Life cover, is not mandatory, neither is "mortgage" protection.

Yeah - from what I understand your bank is allowed to expect you to have insurance on your bond, but you are definitely allowed to source your own rather than take whatever they're offering.

This article covers it pretty well: http://www.mybondcover.co.za/mortgage-cover.html - "Combined with the fact that you don't get to shop around for the cheapest rates when you finance your mortgage cover payments, this could end up costing you tens of thousands of additional rands you could have used to settle your mortgage faster."

Suffice to say I went direct with Momentum - not Standard Bank's mortgage cover.

 

[ToxicBunny]

Yeah - from what I understand your bank is allowed to expect you to have insurance on your bond, but you are definitely allowed to source your own rather than take whatever they're offering.

This article covers it pretty well: http://www.mybondcover.co.za/mortgage-cover.html - "Combined with the fact that you don't get to shop around for the cheapest rates when you finance your mortgage cover payments, this could end up costing you tens of thousands of additional rands you could have used to settle your mortgage faster."

Suffice to say I went direct with Momentum - not Standard Bank's mortgage cover.

A bank is allowed to require you to have building insurance. Nothing more than that.

Nedbank TRIED to force me to get life insurance as well to grant me the bond until I told them which cliff to go and jump off.