An HEIR’S BOND is a financial guarantee. It is required by lending banks when the Spouse of the Owner of the collateral house and lot is Deceased. Or if the Title has an annotation of Section 4 of Rule 74 of the Rules of Court.
Bago kayo bumili ng property from an Individual Seller using a bank loan or Pag-ibig loan, tanungin nio muna kung kaninong pangalan ang nasa Title, kung married, at kung parehong Buhay (Living). Kapag ang owner ay Deceased na, or kapag ang spouse ng Owner ay Deceased na, mas magasto at mas matagal ang processing. Isa dito ang pagbili ng Heirs Bond. As of May 2024, around 20,000 pesos ang Heirs Bond for a 2 million-peso loan. At hindi lang basta-basta ang pagbili. Maraming required documents, katulad ng co-signers with income and real estate properties, at kelangan ang latest ITRs nila or copies of titles.
Sa Pag-ibig, ang requirement nila is Surety Bond, hindi Heirs Bond, although pareho lang naman ang purpose.
The Heir’s Bond will protect the lending bank from loss in case legitimate heirs or unpaid creditors have been excluded from the settlement of the Deceased’s property, which was used in the home loan as collateral. And these heirs win their lawsuit to claim their share of the property.
An Heir’s Bond (or Heirs Bond) is an agreement among 3 parties:
- the insurance company which issues the bond and will pay court-declared valid claimants
- the home loan borrower who pays the bond
- the lending bank that gives the home loan
The borrower is called the Principal or Obligor; the lending bank is called the Obligee or Bond Beneficiary.
Warning! Before you buy an Heirs Bond, ask your lending bank if the insurance company you are planning to buy from is Acceptable to them.
How much is Heirs Bond?
About 1% of the home loan amount. For a 2 million-peso home loan, the heirs bond cost is around 20,000 pesos. The quotes I got from several of the following do not differ much. Mga few hundreds lang ang difference.
Ang tingnan na lang is yong requirements, at yong bilis ng pag-process nila ng application. Almost lahat ay nagre-require ng co-signers with real estate properties and ITRs. Yong iba, kelangan pang notarized. Meron akong nakitang 3 na nagpa-process ng bonds sa Facebook. Ang partner insurers nila ay Travellers, Pacific Union, at Alpha Insurance. Mas mahal nga lang kasi siempre they’re helping you expedite the process. In case you decide to hire their service, make sure you’re depositing or transferring your payment to the bank of the insurance company, and not to the agent’s bank account.
As of now, ang pinagpipipilan namin ay BPI MS at Oola Insurance, kasi sa BPI kami nag-apply ng home loan. Oola naman has the least documentary requirements and offered a fair price.
BPI MS Insurance (owned by the Bank of the Philippine Islands and Mitsui Misutomo Insurance of Japan)
Website: bpims.com
Requirements:
- BPI MS Individual Information Sheet (by applicant and all heirs)
- Deed of Extra Judicial Settlement or Self-Adjudication
- Certificate of Publication of the Deed of Extra Judicial Settlement or Self-Adjudication
- Death Certificate of the deceased person whom the property is inherited
- Loan Approval
- Old Title
- New Title
- Deed of Absolute Sale (if there was a sale of the property used as collateral for the loan)
- IDs of borrower and all heirs and co-signers and spouses, if applicable (photocopy on bond paper and 3 signatures)
- Indemnity Agreement (to be signed by applicant and all heirs)
- Proof of heir’s relationship with the deceased. Submit what is applicable:
- Marriage certificate
- Birth certificate of deceased
- Birth certificate of child/children
- Certificate of No Marriage of the Deceased (if not married)
- Death certificate of deceased’s parents and/or siblings (if heirs are siblings and nephews/nieces)
- Birth certificate of deceased’s siblings and/or nephews/nieces (if heirs are siblings and nephews/nieces)
- If there’s only one heir, or if not all heirs are available to sign the bond and indemnity agreement, submit the following:
- SPA in favor of applicant or heir as Attorney-in-fact
- Co-signer’s Information Sheet (with marital consent if married; co-signer must have real estate properties or liquid assets worth double the bond amount)
- Photocopies of bank deposits or land titles of real estate properties declared by co-signer
AXA Philippines
Website: axa.com.ph
Requirements:
- AXA Client Information Sheet
- Co-signer Statement Form (at least 2 co-signers)
- Co-signers’ latest ITRs, or certificate of time deposit from Metrobank
- AXA Indemnity Agreement
- Deed of Absolute Sale
- Extrajudicial Settlement of Estate or Affidavit of Self-Adjudication or Deed of Partition
- Affidavit of Publication of Extrajudicial Settlement of Estate or Affidavit of Self-Adjudication or Deed of Partition
- Death certificate of Deceased
- Proof of relationship of heirs: Marriage certificate for surviving spouse, birth certificate for children or siblings of deceased
- Bank’s Appraisal Report
- At least 2 valid government-issued IDs
Commonwealth Insurance Co.
Website: cic.com.ph
- Duly accomplished Bond Application form, co-signer’s statement & employer’s Statement together with the copies the latest ITRs of the signors.
- Copy of Extra-Judicial Settlements/partition among heirs
- Copy of Death Certificate
- Affidavit of Publication and proof of Publication
- Copy of Title and/or Bank Book
- Note: ALL the heirs of the deceased should sign the Indemnity Agreement (including their spouses).
Stronghold Insurance Company
Requirements:
- Application for Bond (to be notarized, with community tax certificate no.)
- Photocopy of contract or agreement that needs a bond
- Co-signer’s Information Sheet (2 co-signers, to be notarized, with community tax certificate no., co-signers must own clean-titled real estate properties worth double the bond amount (market value), with marital consent if married)
- Photocopies of titles and tax declarations of real estate properties declared by the applicant and co-signers in the bond application
- Indemnity Agreement* (to be notarized, to be signed by applicant and co-signers with residence certificate nos.)
- ITRs of co-signers, with supporting financial statements, if any
- Photocopies of government-issued IDs of applicant and co-signers (2 IDs each)
- Special Power of Attorney, if applicable
*Indemnity Agreement: The applicant and co-signers agree to indemnify the insurer for payments, costs, damages, charges, penalties, expenses, and any losses that the insurer may incur arising from the surety and to pay attorney’s fees.
The Premier Life and General Assurance Corp.
(formerly The Premier Insurance & Surety Corp.)
Website: premierlifeandgen.com
- Bond application with 2 valid xerox ID with specimen signature
- AMLA
- Co-signer’s solvent with ITR and 2 copies of xerox valid ID with specimen signature
- Extrajudicial partition or Settlement
- Notice or Affidavit of Publication for Extrajudicial (3 consecutive weeks)
- Waiver of Rights, if applicable
- Title of property
- Death certificate
- Marriage Certificate
- Birth certificate
- Indemnity Agreement
Standard Insurance
Website: standard-insurance.com
When I called them, they instructed me to go to their branch nearest my residence. They have 14 branches in Metro Manila, 34 in Luzon, 10 in Visayas and 12 in Mindanao.
Unfortunately, when I went to their nearest office, the bond officer there said it should be the heirs requesting or purchasing an heirs bond, not their buyers. I tried my best to explain, but oh well, that’s their statement.
But anyway, they gave naman a list of requirements:
- Title, photocopy
- Extra-Judicial Settlement, photocopy
- Publication, photocopy
- Bond Application form
- Co-signor’s Statement (2 co-signors)
- ITRs of co-signors
- Titles of assets owned by co-signors, photocopies
- Indemnity Agreement (to be notarized)
- Government IDs of applicant and co-signors, 2 IDs each
- SPA, if applicable
Prudential Guarantee Insurance Inc.
Website: prudentialguarantee.com
AlliedBankers Insurance Corp.
The non-life insurance company of the Lucio Tan Group and the non-life insurance product provider of PNB Bancassurance.
Website: alliedbankers.com.ph To request a quotation, kindly email sales@alliedbankers.com.ph
Pacific Union Insurance Company
No. 16 based on Net Worth in 2023 (2.24 Billion Pesos); No. 29 based on Assets in 2023 (3.69 Billion Pesos)
Requirements:
- Application Form (Individual)
- Co-signer’s statements (2 co-signers, to be notarized)
- Extrajudicial Settlement
- Copy of Publication and Affidavit of Publisher
- Death certificate
- Marriage or Birth certificate (if the deceased is survived by a spouse)
- Copy of the TCT (Sec 4 Rule 74)
- Loan approval (REM)
- Company documents if applicant is a company
FPG Insurance
Requirements:
- Deed of Extra-Judicial Settlement or Self-Adjudication
- Certificate of Deposit/s with Account Number
- Publisher’s Affidavit of Publication of Deed of Extra-Judicial Settlement or Self-Adjudication
- Death certificate of the person whose estate is for distribution
- Certificate of No Marriage (CENOMAR), if the deceased is single
- Proof of filiation to the decedent of the applicant such as Marriage and Birth Certificate
- Latest ITR of the applicant/s, payslip or source of living if unemployed
- 2 valid IDs of all heirs
- Completed, dated and signed Bond Application Form and KYC Form
- 2 co-signer’s with 2 valid ID’s and latest ITRs
- If you have an existing FPG Insurance account, please provide ANY of the following information:
Policy Number and Assured Name
Website: ph.fpgins.com
FPG Heir’s Bond Application Form
Liberty Insurance Corp.
Website: libertyinsurance.com.ph
Travellers Insurance Surety Corp.
Website: triscoph.com
Since 1964. Info on Heirs Bond
In a Facebook group related to real estate, an agent says he can help process an Heirs Bond from Travellers Insurance in one day. He also said that there are only a few required documents:
Alpha Insurance & Surety Co.
Website: alphainsurancesurety.com
Alpha Insurance is No. 19 based on net worth in 2023 (2.06 billion pesos) and No. 33 based on assets in 2023 (3.2 billion pesos)
Requirements:
- Bond Application (Individual)
- Co-signer’s statements (to be notarized, 2 co-signers)
- Co-signer’s IDs, ITR, residential tax certificate, and TCT of real estate properties owned, if any (photocopies)
- Extra-Judicial Settlement (EJS) (photocopy)
- Publication of EJS (photocopy, and/or most probably Affidavit of publication)
- Title (photocopy)
- Death certificate (photocopy)
Cocogen Insurance Inc.
Website: cocogen.com
Requirements:
- Deed of Extra Judicial Settlement or Affidavit of Self-Adjudication
- Editors’ Affidavit of Newspaper Publication for 3 consecutive weeks
- Death Certificate
- Tax Clearance /Tax Receipts from BIR
- Marriage Contract
- Cocogen Application Form, signed by applicant and 2 co-signers with their respective ITRs and photocopy of any government-issued ID
- Photocopy of declared properties of co-signers
- Copy of the Title
- Birth Certificate (If the surviving heirs are children of the deceased)
- Special Power of Attorney ( if applicable)
- Deed of Absolute Sale
- Appraisal Report
Western Guaranty Corp.
Website: westernguaranty.ph
Oona Insular Insurance Corp. (MAPFRE)
Oona is No. 21 based on assets in 2023 (4.6 billion pesos) and No. 46 based on net worth in 2023 (1.34 billion pesos)
Requirements:
- Application Form (with TIN no. and tax certificate no., to be notarized)
- Co-signer’s information sheet (with marital consent, tax certificate no. and TIN no.)
- Extrajudicial Settlement
- Death certificate
- Affidavit of publication
- Documents related to the property being covered (Title, Tax clearance, Tax declaration)
- Government IDs of all signatories and their spouses
GSIS (Government Service Insurance System)
Website: gsis.gov.ph
Ask your lending bank if it accepts a GSIS Heirs Bond. Baka puede lang ang GSIS Heirs Bond sa Pag-ibig home loan o sa bond requirement ng Register of Deeds. Hindi ko rin sure kung nag-a-accept ang GSIS ng Heirs Bond application for a home loan, kasi itong list of requirements nila is for bank account. But somebody on reddit philippines suggested GSIS in reply to someone asking about heirs bond for a home loan.
Latest ranking of non-life insurance companies that offer Heirs Bond
Ranking based on net worth as of December 2023, as published by the Insurance Commission:
| Rank | Non-Life Insurance Company | Net Worth |
| 4 | Standard Insurance | 4.39 Billion |
| 5 | Prudential Guarantee Insurance | 3.9 B |
| 6 | Travellers Insurance | 3.29 B |
| 7 | Commonwealth Insurance | 3.22 B |
| 8 | BPI/MS Insurance | 3.19 B |
| 9 | Stronghold Insurance | 3.17 B |
| 10 | Premier Life and General Assurance | 3.11 B |
| 11 | Alliedbankers Insurance | 2.83 B |
| 16 | Pacific Union | 2.24 B |
| 17 | FPG Insurance | 2.22 B |
| 18 | Liberty Insurance | 2.10 B |
| 19 | Alpha Insurance | 2.06 B |
| 20 | Cocogen Insurance Inc. | 2.03 B |
| 26 | Western Guaranty Corp. | 1.67 B |
| 38 | Charter Ping An Insurance * | 1.42 B |
| 46 | Oona Insular Insurance (MAPFRE) | 1.34 B |
| Rank | Life Insurance Company | Net Worth |
| 6 | Philippine AXA Life Insurance Corp.* | 11.23 B |
Note: In the above table, I included just the insurers mentioned in the article. Malamang merong mga insurers na hindi ko na-include, pero nag-o-offer naman sila ng Heirs Bond. Please comment na lang po, if you wish so.
* The merger of AXA Philippines (life insurer) and Charter Ping An Insurance (non-life insurer) was completed in March 2023. AXA acquired Charter Ping An in 2016.