In South Africa, retrenchment (also called a "Section 189 dismissal") happens when an employer cuts jobs for operational reasons - not because of anything the employee did wrong. When this happens, your income stops but your bond repayments don't. With retrenchment rates rising in 2026, protecting your home loan has never been more critical.
Retrenchment bond cover steps in to pay your monthly home loan instalments directly to the bank for 6 or 12 months (your choice), giving you a financial runway to find new employment without defaulting on your mortgage.
"South Africa's unemployment rate hovers around 32%. Retrenchment cover is not a luxury - for many homeowners it's the only safety net between a job loss and losing their home."
Retrenchment cover has specific eligibility requirements. Here's what qualifies and what doesn't.
The claim process is straightforward. Here's what to expect from event to payout.
You receive formal notice of retrenchment from your employer.
Contact us within 30 days of your last working day to start a claim.
Provide retrenchment letter, UIF registration proof, and last payslip.
Our underwriting partner assesses your claim - typically within 48 hours of complete documentation.
Monthly repayments go directly to your bank for 6 or 12 months (your choice).
SettleMyBond's bond protection policy bundles all three cover types together - one affordable monthly premium.
Bond settled in full when you pass away - your family keeps the home debt-free.
Learn more →Monthly bond payments covered for 6 or 12 months (your choice) if you're involuntarily retrenched.
You are hereInstalments for 24 months, then a lump sum, if permanent disability leaves you unable to work.
Learn more →Includes death, disability and retrenchment cover. From as little as R200/month. No medical exam required.
SettleMyBond's retrenchment cover pays your monthly bond repayment for 6 or 12 months (your choice) while you are retrenched and actively seeking employment. Cover resumes if you are retrenched again after returning to work.
Yes - there is a 180-day waiting period from the start of your policy before retrenchment cover becomes active. This prevents people from taking out cover after already knowing they will be retrenched.
No. Retrenchment cover only applies to involuntary job loss - where your employer terminates your employment for operational reasons (Section 189 retrenchment). Voluntary resignation, dismissal for misconduct, or retirement do not qualify.
Retrenchment cover is generally not available for self-employed people, as the trigger event is employer-initiated retrenchment. Self-employed homeowners can still get death and disability cover through SettleMyBond.
What happens to your bond when you pass away?
Instalments for 24 months, then a lump sum, if permanent disability stops you working.
Get covered without blood tests or doctor visits.
Claims assessed and paid within 48 hours of acceptance of a valid death claim of documentation.