ABSA's bundled home loan insurance is one of the most expensive in South Africa. You have the legal right to cancel it and switch to SettleMyBond - same comprehensive cover, far lower premium.
Get My Free QuoteABSA's home loan protection insurance is priced as a premium per R1,000 of outstanding bond balance. Most ABSA homeowners pay between R4.00 and R6.00 per R1,000 per month - significantly above the market average for independent cover.
| Bond Amount | Typical ABSA Premium | SettleMyBond Premium | Monthly Saving |
|---|---|---|---|
| R500,000 | R200–R300 | R90–R175 | ~R110–R125 |
| R900,000 | R360–R540 | R162–R315 | ~R200–R225 |
| R1,200,000 | R480–R720 | R216–R420 | ~R264–R300 |
| R2,000,000 | R800–R1,200 | R360–R700 | ~R440–R500 |
Indicative figures. Get your exact personalised quote using our calculator.
See how ABSA rates against all major banks in our bond insurance bank comparison.
Use our 2-minute quote form. Once accepted, your a leading AA+-rated South African insurer policy activates immediately.
Send a written cancellation notice via email or registered post. Include your home loan account number, the policy you're cancelling, and your new SettleMyBond policy number as proof of substitute cover.
By law, ABSA cannot refuse or delay your cancellation. They must also confirm that your home loan terms will not change. If they push back, cite the National Credit Act and FSCA regulations.
Your new lower premium begins with your first SettleMyBond debit order. Most ABSA homeowners see savings from day one of the switch.
For a step-by-step guide on the cancellation letter and what to say to ABSA, see How to Cancel Bank Bond Cover.
South African law is clear: ABSA cannot force you to use their bond insurance. The National Credit Act gives every homeowner the right to choose an independent, FSCA-licensed insurer for their home loan protection. ABSA is explicitly prohibited from:
See the full legal framework in our legal rights and compliance section.
Not sure whether switching is worth it for your situation? Read our full analysis: Is bank bond insurance worth it?
The National Credit Act gives every South African homeowner the legal right to choose their own bond insurance provider. Your bank cannot force you to use their product or penalise you for switching. Here is how Absa's cover compares to SettleMyBond on the metrics that matter.
| Feature | Absa Bond Insurance | SettleMyBond |
|---|---|---|
| Monthly premium (R1m bond) | R480–R560/month | R180–R350/month |
| Claims payout speed | 14–21 business days | 48 hours (death claims, from acceptance) |
| Medical exam required | Required above R1.5m | No exam up to R3.5m |
| Underwriter | Absa group insurer | AA+-rated insurer |
| Cover: Death | ✅ | ✅ |
| Cover: Permanent disability | ✅ | ✅ |
| Cover: Retrenchment | ✅ | ✅ 6 or 12 months (your choice) |
| Cover: Dread disease | Selected plans only | ✅ Included |
| Sum assured | Varies by policy | Level cover (does not reduce with your bond) |
| FSCA regulated | ✅ | ✅ |
Bottom line: SettleMyBond provides equivalent or superior cover to Absa Life Home Loan Protection at significantly lower cost — with faster claims and no medical exam requirement. The saving on a R1m bond typically runs R200–R600 per month.
Switching away from Absa Life Home Loan Protection is a straightforward process protected by law. Your Absa home loan will not be affected by the change — your bank cannot legally cancel, penalise, or adjust your home loan terms because you switched insurers. Here is the exact process.
Before cancelling Absa cover, get your new SettleMyBond policy active and receive your policy documents. Never cancel existing cover before replacement cover is confirmed — there must be no gap in protection. The whole process takes under 48 hours and requires no medical exam for bonds up to R3.5 million.
Contact Absa Life at 0860 227 253 to request cancellation of your bond insurance. Request written confirmation of the cancellation and the effective date. Note: Absa requires 90 days notice for insurance cancellation — budget for this in your timeline.
Send your SettleMyBond policy schedule to Absa's home loan department confirming that equivalent replacement cover is in place. This satisfies your home loan condition to maintain credit life insurance. Absa cannot reject an FSCA-licensed policy that meets minimum NCA cover requirements.
Check that Absa has stopped deducting your old insurance premium from your home loan account. SettleMyBond premiums debit from your nominated bank account separately. Allow one full billing cycle after the notice period before confirming the old premium has stopped.
Retain your Absa cancellation confirmation and your SettleMyBond policy schedule permanently. If any dispute arises about insurance continuity, these two documents together prove uninterrupted cover.
SettleMyBond guides you through every step of this process. If you have questions about your specific Absa policy, our team will help you navigate the cancellation correctly. Start your switch here →
If you have missed payments on your Absa home loan and received a letter from Absa's collections team, your situation is different from someone simply looking to switch insurers to save money. You need to understand where you are in the legal process before making any decisions about insurance.
Under the National Credit Act 34 of 2005, Absa is legally required to send you a formal Section 129 notice before they can take any legal action to recover the debt. This notice gives you a 10-business-day window to respond — and during that window, you still have options.
The most important thing to understand: the arrears that led to your current situation are often caused by events that bond protection insurance covers — retrenchment, disability, or critical illness. If your cover was inadequate (or if your bank's cover excluded your specific circumstance), getting the right cover in place now protects you from this situation recurring.
If you have received a Section 129 notice from Absa: Read our full guide on what a Section 129 notice means, your rights, and exactly what to do within the 10-business-day window →
Once your arrears situation is resolved, SettleMyBond cover ensures a retrenchment, disability, or death event never creates arrears again. Your repayments are covered directly — your account stays current — and no Section 129 notice is ever issued.
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