Pays Your Home Loan When You Can't!
Buying a property with a spouse, partner, or co-owner is a major financial commitment. When two people share a home loan, both incomes are usually relied upon to qualify for the bond and maintain monthly repayments. But what happens if one of the co-borrowers passes away? This is where Joint Bond Cover becomes essential.
Joint Bond Cover is designed specifically for properties financed by two or more people. It ensures that the outstanding home loan is settled — either fully or partially — if one of the bonded individuals dies during the bond term. Without adequate protection, the surviving partner could face serious financial strain or even risk losing the home.
Joint bond cover is life insurance structured to protect a home loan taken out by two people. It can be arranged in different ways, depending on your financial needs and insurer options:
The structure you choose will determine how much is paid out and what happens to the remaining cover after a claim.
When two people apply for a home loan together, affordability calculations are often based on combined income. If one partner dies, the surviving borrower may struggle to continue repayments alone. Joint bond cover ensures that:
Without bond cover, the deceased’s share of the property forms part of their estate. This can delay ownership transfers and create financial uncertainty during an already stressful time.
In most cases, the total cover amount should equal the outstanding bond balance. There are two common approaches:
While 50% cover may be more affordable, 100% cover per borrower offers stronger financial protection. The right option depends on income levels, affordability, and long-term financial planning goals.
Like individual bond cover, joint policies can be structured as reducing term or level term cover.
Reducing term cover decreases as the bond balance reduces. Premiums are generally lower and align with the declining loan amount.
Level term cover maintains a fixed payout amount throughout the policy term. If one partner dies later in the bond term, the remaining funds after settling the bond can be used for additional financial needs.
Premiums for joint bond cover depend on several factors:
Each borrower is assessed individually, even under a joint policy. If one partner has health risks, premiums may differ between the two lives insured.
Yes. Many couples choose to use existing life insurance policies instead of taking new bond-specific cover. As long as the cover amount is sufficient and the policy is ceded to the bank, it can satisfy bond requirements. This approach can sometimes be more cost-effective and flexible.
Joint bond cover should form part of a broader financial plan that considers income protection, estate planning, and long-term wealth security.
Banks usually require life cover for bonded properties, but you can choose your own insurer. The cover must meet the bank’s requirements and be ceded as security.
For maximum protection, yes. This ensures the bond is fully settled if either partner passes away. However, affordability must be considered.
Basic bond cover typically only pays on death. You can add disability or critical illness benefits for additional protection.
Yes. As long as both parties are co-borrowers on the bond, they can structure joint life cover to protect the loan.
It depends on the policy structure. Some joint life policies pay out on first death and then end, while separate policies continue independently.
Yes. You may switch insurers during the bond term, provided the new policy meets the bank’s requirements and is properly ceded before cancelling the old cover.
Joint bond cover provides essential protection for couples and co-owners who share financial responsibility for a property. By structuring the cover correctly, you ensure that your home remains secure — even if life takes an unexpected turn.