Why Life Insurance Is Necessary When You Have A Bond

As the main person responsible for the bond payment, can you imagine dying and leaving the bond repayments for your dependants to pay?  Your loved ones will not only have the trauma of dealing with your death, but also have the added stress of taking over the bond repayments, which can add to the financial burden of one less salary in the household, and in many instances, the breadwinner.

Life insurance, or bond cover, should be top priority when purchasing a home as it ensures that your dependants will still have a roof over their heads in the event of your death.

What Is Life Insurance?

Life insurance, or life cover, is a means of financially protecting beneficiaries when a life- changing event occurs. Life cover pays out a lump sum at the time of your death, which will provide your loved ones with an income, allow them to settle debt and cover estate duty costs. As it is an immediate payment, it can also assist with funeral expenses.

Bond cover is another type of insurance which is designed to pay the home loan only.

Sadly, it is not mandatory to take life cover or bond cover when a home is purchased, which leaves the dependants open to the risk of losing their home in the event of the breadwinner’s death.

Life cover is often considered a grudge payment, and dismissed without sufficient insight.  Upon the death of the bond payer, the family could find itself in financial crises, or even destitute. That monthly insurance payment will give your dependants peace of mind that they don’t have to sell their home after your death.

We urge each bond holder to rethink the benefits of life cover, or bond cover. It is a small price to pay for your family’s future.

March 18 2019 By Why Life Insurance Is Necessary When You Have A Bond - Noble Wealth Management Financial Planning