What Are the Benefits of Bond Protection Insurance?

1. Death Cover - Your Bond Is Settled in Full

The primary benefit of bond protection insurance is that if you pass away, the policy settles your entire outstanding home loan balance. The payout goes directly to your bond account, not to your estate, which means your family keeps the property free and clear without any further bond repayments. This is particularly critical in South Africa, where according to Statistics South Africa, the majority of households rely on more than one income to meet their monthly obligations. Without death cover, your family may be forced to sell the home or face repossession. Learn more about how bond protection works.

2. Permanent Disability Cover

If you become permanently disabled due to illness or injury and can no longer work, your bond protection policy pays your monthly instalments for the first 24 months, then a lump sum equal to your sum assured into your bond account. This ensures your home remains yours even when you lose your ability to earn an income. Many South Africans underestimate the risk of disability, yet it is statistically more likely to occur during your working years than death. Comprehensive cover from an independent provider protects against this often-overlooked risk.

3. Retrenchment Cover - 6 or 12 Months (Your Choice)

In a volatile economy, retrenchment is a real and present risk. Bond protection insurance with retrenchment cover pays your monthly bond instalments for 6 or 12 months (your choice) while you search for new employment. This gives you critical breathing room - you can focus on finding the right opportunity without the immediate pressure of losing your home. The National Credit Regulator notes that home loan default following job loss is one of the leading causes of property repossession in South Africa.

4. Dread Disease Lump Sum

Dread disease cover is an optional add-on. It pays a lump sum equal to your sum assured into your bond on diagnosis of a listed condition such as cancer, heart attack, stroke or a major organ transplant, and the policy then ceases. This payout settles or reduces your bond balance, easing the financial burden during a period of serious illness when your income may be reduced or your expenses increased. Not all bank policies include this benefit - it is an important point of comparison when evaluating your options.

5. Level Cover - A Fixed Sum Assured

SettleMyBond cover is level: the sum assured stays the same as you pay down your home loan, and premiums do not automatically decrease. Your premium only falls if you ask for a lower sum assured. Otherwise premiums are reviewed annually and increase with age. Once your bond is paid, you can keep the policy as whole of life cover.

Additional Benefits With SettleMyBond

Beyond the core cover benefits, choosing an independent provider like SettleMyBond offers further advantages. Our policies are underwritten by a leading AA+-rated South African insurer, accepted by every major South African bank, and come with no medical exam requirement. The sum assured on a valid death claim is paid within 48 hours of acceptance of a valid death claim. There are no lock-in contracts, and you can switch from your bank's cover at any time without penalty. Most importantly, independent cover costs up to 40% less than what the major banks charge. Get your free quote and see how much you could save.