A Fin24 user is a co-applicant for a home loan and wants to know if both applicants need to take out bond cover. He writes:
We have co-applied for a home loan. Do both applicants have to take out bond cover? Does this not equal paying double cover on the same property?
Should it only be applicable to the primary applicant?
Craig Young, managing executive of oobainsure, responds:
If the life cover is a condition from the lender in granting the bond, then both applicants would need to be covered as they are co-applicants on the bond. If not, then only one may be covered.
If not a condition and both elect to be covered, the second life gets a 20% discount on premium and the life cover will settle the loan to the lender on an event happening to either of the lives insured.
If only the primary applicant on the bond is covered and something should happen to the co-applicant, the primary applicant will have to continue paying the bond and the loan will not be settled with the bank.
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