01) What is BondAbility?

BondAbility will pay your insured amount into your home loan account in the event of your untimely death. If the cover amount is greater than the outstanding home loan balance, the payment will provide for additional funds that will be paid to your estate from your home loan account.
If you are prevented as a result of illness or bodily injury from earning an income for a period of ninety days or more, then BondAbility will pay your monthly home loan instalments while you remain unable to work – backdated to the 1st day. You have the option to select either a full benefit period that will offer comprehensive cover, or a reduced benefit period of 24 months, which will provide a more affordable premium but reduced levels of cover.

02) Why should I have a BondAbility?

For most individuals and families a home loan is a major financial commitment and it is therefore of the utmost importance that you ensure that your home loan is adequately protected in the event of you passing away or not being able to earn an income due to accident or illness.
BondAbility provides complete peace of mind that should you pass away, your sum assured will be paid directly into your home loan account relieving your family of the burden of paying the monthly home loan instalments while waiting for your estate to be wrapped up.
Should you not be able to earn an income due to accident or illness, BondAbility provides peace of mind that your monthly home loan repayments will be made on your behalf directly into your home loan account affording you the opportunity to recover without the burden of having to worry about how to pay your mortgage.

03) What if I’m already covered?

Even if you already have life insurance, it makes sense to carefully review it to make sure you’ve got the cover you need. For example, your existing cover may have been put in place for other reasons and by using it to protect your bond, you may be compromising your families security in the event of your death or disablement.
You may not have enough cover if your circumstances have changed recently – for instance, if you’ve just had kids, or moved homes.

04) Can the insurance be taken out on a joint life basis?

Yes, you can take out BondAbility on your own or with someone else. Should you take out a joint life, BondAbility will pay out for the first life to pass away or become disabled.

05) What is insurable interest?

In order to have insurable interest in something, you must stand to suffer a direct financial loss or certain other kinds of losses if it is lost or damaged. It is important for the insurer to establish that you have insurable interest when purchasing life assurance, however, the insurable interest only needs to be established when the policy is purchased. When purchasing Life assurance, everyone is considered to have insurable interest on their own lives as well as the lives of their spouse and dependants.

06) What is the difference between whole life assurance and life term insurance?

Generally, whole life assurance is taken out for your entire life, paying out on death. BondAbility is designed and priced for the life of your bond, which allows us to structure the most affordable and competitive premiums to cover the entire term of your bond.

07) Do I get any money back if I don’t die before the end of the term?

In order to provide the most competitive premiums, BondAbility provides pure risk cover for the term of your home loan, therefore, there is no cash out value or savings portion to the policy.

08) What is the Pre-Existing condition?

Should you die within in 24 months of the commencement of your BondAbility policy due to any condition, physical defect, illness, bodily injury or disability which the insured was aware of and / or received medical advice or treatment during the 24 months prior to the commencement date, or date of any reinstatement, or increase in cover, no claim will be paid and all premiums will be forfeited.
Should you become disabled while the policy is in force due to any condition, physical defect, illness, bodily injury or disability which you were aware of and / or received medical advice or treatment during the 24 months prior to the commencement date, or date of any reinstatement, or increase in cover, no claim will be paid and all premiums paid will be forfeited.

09) What does the Pre-Existiing condition mean for me?

If you have had any medical condition that has been diagnosed or treated in the last 24 months, be aware that that condition will not be covered for the first 24 months of the policy for death and will not be covered for the term of the policy for disability.

10) Bond Debit / Debit Order

Should you have your bond with Nedbank or ITALA, you can have your BondAbility premiums deducted annually from your home loan account.
The advantage of having your BondAbility included with your Mortgage debit order is that it saves you the cost of running a separate debit order monthly.

11) What is a Cession?

A cession can be defined as the transferring of the ownership of a policy from one person to another.
BondAbility makes use of a Collateral Security Cession which provides security for the bank funding the home loan that in the event of a successful claim the policy will pay directly to the home loan account.

13) 30 Day cooling off period

Right to cancel If you are not satisfied with your BondAbility policy you may cancel the policy or request alterations to it within 30 days of acceptance of your application by Nedgroup Life. If you cancel your policy you will be entitled to a refund of all premiums paid in respect of your policy provided no claim has been made under this policy.