How To Make Certain You Will Meet Your Home Loans Bank Repayment Plan
It’s tempting to sit back and relax after you have moved into your new home – but wait, have you made sure that you are insured against all the risks that could stop you from meeting your home loans bank repayment plan? Many things may go wrong and make it not possible for you to work so that you will have the income to satisfy your monthly bond repayments and living expenses. Moreover, rates of interest on home loans could go up to the extent that you’ll no longer be capable of afford the repayments. If you are responsible for a family, then it is particularly significant that you take heed of the following issues:
Rising interest rates
What happens if rates of interest rise and you can no longer afford your monthly repayments? It’s possible to fix the interest rate of your bond for a predetermined time frame so that you pay the same interest rate every month irrespective of Reserve Bank interest rate fluctuations. On the other hand, if the interest rate on home loans bank payments goes down while your bond is on a fixed interest rate then you’ll continue to pay that rate but you will benefit because you are going to be paying in additional every month above the interest rate.
Employment retrenchment
Imagine you are made redundant? You can claim from the Unemployment Insurance Fund for a certain time after you have lost your job however the sum you’ll get will be a percentage of your former paycheck and is usually insufficient for a household to live on, much less pay the bond. Consequently, you will possibly not be able to keep up with your home loans bank payment schedule and risk having your home repossessed by the bank. Hence , it is possible to insure your salary against the risk of being laid off in the future by taking out income protection insurance with an insurance firm.
Sickness and impairment
The insurance industry reports that 1/5 of men and 1/6 of women must permanently abandon work before retirement because of a serious illness or accident. Consider this, should you have a heart attack at the age of 45 then you’re unlikely to go back to work again. With a household to support and a home loans bank repayment plan to meet, this might be disastrous. It’s possible to acquire incapacity cover for a relatively modest monthly fee which can pay out a sum of cash should you be not fit for employment. The earlier in your life you take out this kind of insurance cover the better, and you ought to commence paying in while you are still young and in good health.
Early death
What if you die while you’re still young and before retirement, leaving your loved ones to cope with an outstanding home loan? You can take out life coverage which is not too expensive and will pay out a lump sum upon loss of life. Like disability coverage, life cover should be applied for early in life, allowing as many potential years of premium payments as possible.
As you can see from the above questions your capacity to satisfy your home loans repayment schedule has a lot to do with your continued good health. Thankfully, there’s an insurance policy to cover almost any eventuality and many of them are relatively inexpensive as long as you shop around. In any case, the amount you pay for this protection is worth every cent for the reassurance it can give you.
For more information about home loans bank repayments visit the website http://www.isureins.co.za
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