FNB's bundled bond insurance costs thousands more than it should. You have the legal right to switch to SettleMyBond - identical comprehensive cover, backed by a leading AA+-rated South African insurer, at a fraction of the price.
Get My Free QuoteFNB's home loan protection is marketed as convenient, but convenience comes at a steep cost. Most FNB bondholders pay R4.00 to R6.00 per R1,000 of bond balance monthly — well above what independent cover costs.
On FNB's typical Gauteng bond of R1.2 million, that's R480 to R720 per month. SettleMyBond covers the same bond from R216 to R420 per month — saving you up to R300 every month, or R72,000 over a 20-year bond.
| Bond Amount | Typical FNB Premium | SettleMyBond | Monthly Saving |
|---|---|---|---|
| R750,000 | R300–R450 | R135–R263 | ~R165–R188 |
| R1,200,000 | R480–R720 | R216–R420 | ~R264–R300 |
| R1,900,000 | R760–R1,140 | R342–R665 | ~R418–R475 |
| R2,800,000 | R1,120–R1,680 | R504–R980 | ~R616–R700 |
Indicative figures based on typical market rates. Get your exact quote using our calculator.
FNB's bond insurance product — officially called FNB Home Loan Protection — is underwritten by FNB Life, a subsidiary of FirstRand. When you take out an FNB home loan, the policy is bundled into your monthly repayment at approval, making it easy to miss on your statement.
A key structural difference: FNB's cover is typically priced as a percentage of your outstanding bond balance. As you pay down your bond, the insured amount reduces. SettleMyBond, by contrast, offers level cover — your payout amount stays fixed at the value set when you took out the policy, regardless of what you have already repaid.
FNB holds one of the largest retail home loan books in South Africa. That scale gives FNB considerable leverage to cross-sell insurance, but it also means their pricing is optimised for volume rather than value to you.
For a side-by-side comparison of what FNB, ABSA, Standard Bank and Nedbank charge versus what SettleMyBond charges, see our bank-by-bank comparison table.
Section 106 of the National Credit Act gives you an unconditional right to insure your home loan with any FSCA-licenced provider of your choice. FNB is legally bound to accept your decision.
Under Section 106, FNB cannot:
For more on your rights as a policyholder, see our legal protections guide.
This is the question we are asked most often by FNB homeowners considering a switch. The short answer: it depends on your specific eBucks tier and which qualifying products you hold.
FNB's eBucks programme rewards points based on a combination of qualifying products — a cheque account, credit card, investment account, and in some tiers, insurance products. Home loan protection insurance is one qualifying product among several. Removing it from your FNB product bundle may reduce your eBucks qualifying score, but this is rarely enough to offset the monthly saving on premiums.
Before switching, log in to the FNB app and check your eBucks qualifying product list under the eBucks rewards tab. If home loan insurance is listed as a qualifying product in your tier, calculate what removing it actually costs you in eBucks value per month — and compare that to your monthly premium saving with SettleMyBond.
In most cases, FNB bondholders save between R200 and R400 per month on premiums — far more than the eBucks value of the insurance product alone.
Complete our 2-minute online form. Receive your premium instantly — no medical exam required. Your cover is backed by a leading AA+-rated South African insurer, and SettleMyBond is operated by FSSSA (FSCA FSP 49967).
Accept your quote and your policy activates immediately. We issue a Letter of Cession naming FNB as the beneficiary on your bond — this is the document FNB requires as proof that your bond is covered by a licensed independent insurer.
Email FNB's home loans department with your written cancellation notice, your bond account number, your SettleMyBond policy number, and the Letter of Cession. FNB cannot refuse this submission.
FNB's home loans team confirms that your new policy meets their minimum cover requirements. This typically takes 5–10 business days. During this period both your old FNB policy and your new SettleMyBond policy are active — you are fully covered throughout.
FNB cancels their policy and removes the premium from your repayment. From this point you pay only your lower SettleMyBond premium. Claims under your new policy are settled within 48 hours of acceptance of a valid death claim — faster than most bank policies.
Kagiso, a 34-year-old software developer based in Sandton, took out an FNB home loan of R2.1 million in 2023. FNB's bundled home loan protection policy cost him R680 per month.
After speaking to SettleMyBond, Kagiso received a quote of R390 per month for equivalent cover — death, disability, and retrenchment — backed by a leading AA+-rated South African insurer with no medical exam required.
The switch took 8 business days from quote to FNB cancellation. Kagiso's monthly saving: R290. Over the remaining 18 years of his bond: R62,640.
Kagiso had heard that switching might affect his eBucks rewards tier. After checking his FNB app, he confirmed that home loan insurance was not a qualifying product for his eBucks level — the switch cost him nothing in rewards.
Monthly saving
R290
Over 18-year term
R62,640
R2.1m FNB bond · R680 → R390/month
First-time buyer? See how bond insurance costs change at different bond values in our first-time buyers guide.
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 FNB's cover compares to SettleMyBond on the metrics that matter.
| Feature | FNB Bond Insurance | SettleMyBond |
|---|---|---|
| Monthly premium (R1m bond) | R460–R540/month | R180–R350/month |
| Claims payout speed | 10–15 business days | 48 hours (death claims, from acceptance) |
| Medical exam required | Required above R1.5m | No exam up to R3.5m |
| Underwriter | FNB 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 FNB 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 FNB Life Home Loan Protection is a straightforward process protected by law. Your FNB 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 FNB 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 FNB Life at 087 742 1111 to request cancellation of your bond insurance. Request written confirmation of the cancellation and the effective date. Note: FNB requires 30 days notice for insurance cancellation — budget for this in your timeline.
Send your SettleMyBond policy schedule to FNB's home loan department confirming that equivalent replacement cover is in place. This satisfies your home loan condition to maintain credit life insurance. FNB cannot reject an FSCA-licensed policy that meets minimum NCA cover requirements.
Check that FNB 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 FNB 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 FNB policy, our team will help you navigate the cancellation correctly. Start your switch here →
If you have missed payments on your FNB home loan and received a letter from FNB'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, FNB 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 FNB: 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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