Five Steps to Buying Life Insurance for Your Home Loan
Buying a home for the first time is an exhilarating mix of excitement and stress, which culminates in your owning a place you get to paint any colour you want. But before you start picking the brightest paint swatches on the rack, there’s something you need to do to protect your shiny new asset.
We’re talking about life insurance. Basically, it works like this: You find a house you love, you apply for a home loan, you get the home loan and the bank requires you to get life insurance to cover the bond. You need this cover, because if anything should happen to you, whether it’s illness, sudden disability or the Big Sleep, the bank has the right to sell your property to cover the outstanding loan amount. That’s bad news for your family.
But with life insurance, if any of that should happen, you or your beneficiaries get a lump sum paid out to cover your bond (and potentially any other debts you may have). Think of it as a lovely blanket that surrounds you all, making sure you’re warm and safe, forever.
So let’s get right to it, here’s how you go about buying life insurance:
Do some research, ask friends and family, talk to your bond originator or financial advisor or broker. The best advice often comes from someone you already trust. And check out Sanlam Indie’s Life Cover. It’s world-class cover, plus it includes a Wealth Bonus that can help you pay your bond off quicker (more on that later).
Request some quotes. Most reputable financial services providers have online tools that allow you to get an idea of your potential premiums, which makes it easier to compare. Remember that cheapest isn’t always best, and as always, chat to your financial advisor or broker for advice.
Cover only what you need. You can keep your premiums low by making sure your cover amount is exactly what you need. There’s no point in paying more for an eventual payout that is bigger than your actual debt. But if you’re unsure, speak to your financial advisor or broker and they can do a full needs analysis for you.
Choose a life insurance provider with a good reputation and solid backing. Consider the customer services, benefits beyond cover, the price, and of course the terms and conditions of the policy as well.
Complete your application. This could take a while, or if you’ve stepped into the 21st century, you can complete your application online with Sanlam Indie in 10 minutes!
Okay, so what’s the deal with Sanlam Indie you ask? Glad you noticed the hints.
We’re breaking the insurance category mould. Our process is completely online, and you can go from getting a quote to being insured in less time than it takes to power through the latest must-see Netflix documentary. And even if that’s not your cup of tea, our customer service team is always available to give you a call and chat you through the process.
Sanlam Indie Life Cover is the product you’re looking for, especially if you’ve got a home loan. It’s cover without the fuss, plus every Indie policy also comes with a built-in Wealth Bonus. That means we match up to 100% of your monthly premium into a growing reward on your behalf, at no extra cost to you.
Your Wealth Bonus grows until you’re 70, at which point you can cash out and enjoy your money. If you’re not keen on waiting, you can also cash out 10% of the amount every 5 years, which you can use for whatever you want (think about the difference that could make to a bond payment!) The only catch? Stick with us. That’s it.
We’re not telling you to get Sanlam Indie, of course. Research is still important to find the perfect life insurance fit for you. We’re just saying, hey, get a quote 😉