NEDBANK INSURANCE

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BondAbility

Home loan insurance Paying for your home loan when you cannot

Buying a home and paying the loan instalment every month is one of the most responsible things you can do for your family.

But have you considered what will happen if you can no longer pay the instalment on the bond? Will your family be able to keep up the bond instalments without your salary?

With Nedbank Insurance BondAbility you can rest assured that your family will be able to enjoy the comfort and the security of your home even if you can no longer pay the instalment on your bond.

What can BondAbility do for you? BondAbility is designed to pay for your home should you die or become disabled.

How does BondAbility work?

BondAbility offers you three options

Option 1: Death benefit

Option 2: Death and 24-month Instalment Protector benefits

Option 3: Death and full-term Instalment Protector benefits

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NEDBANK INSURANCE BondAbility Home loan insurance

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Home loan insurance

The three BondAbility options

Option 1: Death benefit

Option 2:

Death and 24-month Instalment Protector benefits

Option 3:

Death and full-term Instalment Protector benefits

How does BondAbility work?

What happens if you choose option 1? BondAbility will pay out a lump sum in the event of your death before your 80th birthday.

What happens if you choose option 2? The Death benefit will pay out as in option 1. BondAbility will also pay the monthly bond instalment for up to 24 months if you are unable to carry out the duties of your own or a similar occupation for more than 90 days. You must be under the age of 65 for this benefit to pay out.

What happens if you choose option 3? The Death benefit will pay out as in options 1 and 2. If you are unable to carry out the duties of your own or a similar occupation for more than 90 days, BondAbility will also pay the monthly bond instalment until the end of the loan term or until you reach age 65. This benefit payment will stop if you recover and are able to perform your own or a similar occupation. Note: If you are unemployed you will qualify for disability under option 3.

How do you claim for disability if you are unemployed?

If you are unemployed you will qualify for a claim under accidental disability which results in one or more of the following:

? Loss of use or physical separation at or above the wrist(s) or ankle(s) of ? ? both hands or both feet; or ? one hand and one foot.

? Total and irrecoverable loss of sight in both eyes. ? Total and irrecoverable loss of hearing in both ears.

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NEDBANK INSURANCE BondAbility Home loan insurance

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Home loan insurance

What other important information do you need?

General exclusions Nedgroup Life will not be obliged to make payment in respect of any claim arising directly or indirectly from or traceable to the following:

? Preexisting conditions We will not pay a claim if you should die or become disabled as a result of a preexisting condition within 24 months after commencement of the policy. There will be no refund of premiums because you would have enjoyed cover for all other conditions at the time.

? Suicide or suicide attempt We will not pay a claim if you should die or become disabled as a result of your own intentional act within 24 months of the policy commencement date or any increase in cover.

? Psychological disorders and psychiatric illnesses We will not pay for any claims pertaining to the diagnosis or symptoms of certain mental illnesses or psychiatric or psychological disorders.

? Back and spinal conditions Certain back conditions are also excluded.

Answering a few questions on BondAbility

Is there a maximum cover amount? Yes, there is. The maximum cover is R1 500 000. There is no minimum cover amount.

How is my premium calculated? Premiums are based on various rating factors, for example cover amount, age, gender, occupation, smoker status and income level.

In the event of a claim, who would the benefits be paid to? All benefits are paid directly to the bank that holds the bond on the property.

Does the premium reduce as my outstanding bond amount decreases? No, unless you specifically request a reduction of the cover amount. The full cover amount will be paid across to the bank holding the bond. If a portion of the bond has been paid off, there will be a surplus that the bondholder should pay across to the deceased estate.

Will I need to take any medical tests or answer medical questions? There is no underwriting done on this product, so no medicals are required. However, there is a 24-month waiting period during which claims relating to a preexisting condition will not be paid.

This information is of a general nature and should not be relied on as a substitute for detailed financial planning. The full terms and conditions are contained in the policy document, which will be sent to you on acceptance of the policy. The policy document forms the basis of the legal agreement between us.

For more information you can visit your nearest Nedbank branch or contact the Nedbank Contact Centre on 0860 555 111.

This product is underwritten by Nedgroup Life.

Nedgroup Life Assurance Company Limited Reg No 1993/001022/06, First Floor, Ridgeside Campus, 2 Ncondo Place, Umhlanga Rocks, 4320. We support resolution for unresolved disputes via the Ombudsman for Long-term Insurance. We are an authorised financial services provider (licence number 40915). We are a registered credit provider in terms of the National Credit Act (NCR Reg No NCRCP61). A member of the Nedbank group.

February 2015. This information replaces any information in previously distributed brochures that may still be in circulation. Terms and conditions apply.

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