FYI...so called mortgage life policies, generally offered to buyers when they apply for or close on a mortgage, are usually a rip-off. They are far more expensive, on a cost per thousand basis, than most good term policies anyone can find, sometimes 2x or 3x more costly..and they have an additional drawback..the lender is the named beneficiary on the policy. IOW, you don't get the funds..the bank does. About the only people who should ever consider using these are those with serious medical conditions who might otherwise be uninsurable..as underwriting standards are much more relaxed....
The bond was secured by friends putting up tdeeds to their property, which implies a high drgree of trust, or stupidity, on their part. The cost of a commercial bond is 10% of the amount or $200,000 which is a lot of $$$ to toss out..