Hi, my fiancé and I have a joint bond. He is the one paying the bond, in fact money is being deducted from his account. What will happen if one partner passed on? We have a home loan life cover. Kind regards – Mpho
Hi Mpho, applying for a joint bond means that you are equally responsible for the repayment of that debt, regardless of how you decide to split your financial responsibilities as a couple.
If you enter into a joint bond with a person to whom you are not married, the implication is that you are held jointly and severally responsible for the entire loan amount.
Where a bondholder dies, the surviving bondholder must immediately notify the bank of the death. It is prudent for a bondholder to take out sufficient life cover to settle the outstanding amount of the bond in the event of death of either party.
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Sonja du Toit is a director at MC van der Berg Incorporated