The simple answer is that yes, if you are taking out a bond, you will need adequate life insurance.
After years of saving, planning and searching; you are finally the owner of a brand new house of your very own. Congratulations! Mow that the papers have been signed and the keys have been handed over, you’re going to want to consider home insurance. There are two types of insurance that homeowners should have in place for peace of mind.
The first type of insurance is life insurance. As part of all the admin, the bank who financed your bond will likely require that you have life insurance in place before you buy your new home. Why is this? So that their loan is secured.
It is necessary to have life cover before buying a house - unless, of course you've paid the full amount in cash. This is so that the bank has security on their loan – they know that if you pass away, the money will be available to pay back their loan. Of course, life insurance doesn't just protect the bank. It protects your family too; if anything happens to you, your insurance will cover the remaining bond and your dependents will be able to keep the house, either to live in or to sell and downsize. You can rest easy knowing that should something happen, your loved ones will be able to keep the roof over their heads; and not just any roof, but the one over the house you lovingly picked out.
The other type of insurance that you should consider taking is homeowner's insurance. After picking out your dream home, you'll want to make sure that in the event of an accident or theft, your home and its contents are protected. MiWay Insurance have written a handy guide detailing what every homeowner needs to know about insurance.
Remember though, that you have the freedom to pick your own insurance provider and do not have to go with the provider that the bank offers you. When you are looking at buying a home and have to take out life insurance, it is worthwhile comparing quotes and offerings from a variety of life cover providers. You can get a quick quote with MiWayLife to see how we can help you protect your loved ones’ future.