NEW: Read "Choosing the right life cover for you." Also find out why Mortgage Insurance matters.

MUST READ: Before you get mortgage cover from your bank or mortage lender, read this.

Mortgage Cover | My Bond Cover

If you are paying off a mortgage as a breadwinner, your unexpected death or disablement could lead to your loved ones having to leave their home. A mortgage cover policy can ensure that you leave a lasting legacy - a fully paid up real estate asset for your children or family.

What precisely is mortgage cover?

Mortgage cover is a type of life insurance especially designed to ensure that the policyholder can settle their mortgage in the event of their unexpected death or disablement.

Most mortgage lenders will expect new homeowners to have mortgage cover to the value of the home loan in place to protect themselves against repayment defaults by the property owner. This is fine in terms of credit and consumer protection regulations, but is negotiable between mortgage client and lender. Learn more about your mortage cover rights here.

Why it makes sense to get direct mortgage cover

When you apply for a morgage loan, the lending institution - typically a bank - may offer you a bundled on mortgage cover. This essentially involves financing this expense along with the principle loan amount - and therefore paying interest on the premium amounts of the entire term of the mortgage.

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.

How is mortgage cover different to life cover?

One of the key differences between life cover and mortgage cover is that that mortgage cover policies may only settle the oustanding bond amount - which typically decreases over time due to amortisation.

Based on this, mortgage cover policies may similarly also feature flat fee premiums for the entire term of the policy, whereas standard life cover premiums may increase over time, while still paying out lump sum amount that is not influenced by amortisation.

Standard life cover policies can, however, may also be ceded to mortgage lenders to cover the outstanding mortgage loan amount.

The one advantage of standard life cover is that it retains its benefit value throughout the term of the cover agreement, whereas the benefit paid out by mortgage cover decreases as your outstanding loan amount decreases.

It is important to note, however, that the benefits tend to differ from one mortgage cover policy to the next, making it essential to read the policy documentation and the fine print carefully.

Why use Instant Life Insurance to protect your mortgage?

Affordability: Using Instant Life Insurance to protect your mortgage can save you up to 50% or more on your monthly life insurance premiums, with Cash Backs of 20% for every 10 years you don't claim.

Online convenience: Everything happens online, from requesting a mortgage cover quote to signing up, adjusting your cover or submitting a claim, putting you in the driving seat 24/7.

Peace of mind: You're only a few clicks away from peace of mind about your oustanding bond amount. To get the process started, CLICK HERE NOW.

You can't predict the future, but you can plan for it. Put Instant Life to the test today.