When it comes to buying a home or car you most likely would need financing. Since These two assets are probably the most expensive assets you own, so it's vitally important to make sure that you protect these assets from any risks. Hence the importance of having the right insurance cover in place says FNB expert Eunice Sibiya.
These are the three mopst important types of insurance you need when you are buying a house.
Life Insurance: You need life insurance that matches or exceeds the cost of the bond you're applying for.The reason you need this is to ensure that if something unfortunate does happen to you, the cost/balance of your bond would be settled. With the right insurance, the loved ones you leave behind will have a place to call home.
Household cover: Once you have life insurance in place, insuring the building, the brick and mortar, is the next step. Rebuilding your home after it is gutted by a fire, flooded by a burst geyser or any type of accidental damage can be financially destructive.
Contents of the house: Then it's important to cover all the assets that you have in your home. Should something happen to all the valuables that you have in your home, you need to be able to replace them without denting your pocket.
"You do not need life insurance to cover a car, however you can make sure that you have insurance that covers all your debt should something happen to you"— Eunice Sibiya, FNB Head of Consumer Education Program
According to the Automobile Association of South Africa, there are 11.4 million registered vehicles on our roads today. The shocker is that between 65% and 75% of these cars don't have insurance. It's important to make sure that you have adequate car insurance should anything happen to your car. From minor bumper bashes, to hail damage or if you should lose your car from an accident or theft says Eunice Sibiya.
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