Question:
Can a bank add the annual house life insurance premium onto the bond repayment or should it be done separately? Can we claim the interest charged over the years of repayment?

This loan began in 1999.

Answer:
There are two ways to deal with insurance. The bank can add the annual premium to your bond or charge it separately.

I had a number of conversations with banks regarding this and their position is as follows:

If they add the annual premium to the bond then the client will get a discount on the premium because it is paid for upfront. In theory this offsets the extra interest you will pay on the bond.

If you pay the premiums monthly then they cannot charge interest.