What you need to know about insurance when buying a house!
You will likely need life insurance to cover the property bond.
This policy should include:
- Life cover
- Accelerated lump sum disability
The bank will try to sell you their policy. You do not have to buy it from the bank, you can choose to get an Independent Certified Financial Planning Professional® to assist you. He or she can be your one stop shop assisting you with quotes from different product providers to give you the cover that is best suited to your specific needs.
Other important things to take care of:
- Your Will & Testament
- Income protection, that will help you pay the bond if you are injured or ill and cannot work for a while.
- Short term insurance for the property & it’s contents.
Take note: If you have Group risk cover at your work Pension fund, you will need to have a proper look at the income protection waiting period rules. It may be as much as 3 months! You would need a serious emergency fund to cover all your household expenses and still make your bond payments.
To make this less scary talk to your Certified Financial Planning Professional®.