FNB’s unreasonable credit life policy requirements for Home loans

After finally being approved for a FNB home loan, we opted to cede our own Life policies to the bank. (Might I add, FNB declined our application the first time and once I advised that all other banks approved our home loan request, FNB came back with an offer). FNB has since rejected our Sanlam policies stating that we are not covered for retrenchment (12 month repayment period). How is it that so many other FNB clients have been able to simply cede their existing policies which covers death and disability only? FNB now states that our policies are non-compliant due to not having the retrenchment cover and suggest that we add this on to our policy or take out their credit life insurance in order for the bond to be registered.

Extremely disappointed with FNB. This now means we have to take out additional cover and spend more money because of their unrealistic requirements. I have been banking with FNB for 27 years and I am now considering switching banks.

So much for “How can we help you”!