You're required to have bond insurance - but you're not required to use Nedbank's. Switch to SettleMyBond for comprehensive cover at up to 40% less, backed by a leading AA+-rated South African insurer.
Get My Free QuoteYes - bond insurance is compulsory as a condition of your Nedbank home loan. But here's the important distinction: Nedbank's own insurance product is not compulsory.
The National Credit Act gives you the right to use any FSCA-licensed insurer. As long as your cover meets Nedbank's minimum requirements for bond protection, you can use SettleMyBond - and pay up to 40% less. Read more about your full legal rights when switching.
The key distinction:
Bond insurance = compulsory ✓ | Nedbank's specific policy = not compulsory ✓
| Bond Amount | Nedbank Premium | SettleMyBond | Monthly Saving |
|---|---|---|---|
| R750,000 | R300–R450 | R135–R263 | ~R165–R188 |
| R950,000 | R380–R570 | R171–R333 | ~R209–R237 |
| R1,900,000 | R760–R1,140 | R342–R665 | ~R418–R475 |
See how Nedbank rates against all major banks in our bond insurance bank comparison.
Use our online quote calculator - takes under 2 minutes. No medical exam required, just a short health questionnaire.
Once accepted, you'll receive a formal policy schedule - the document Nedbank needs to confirm equivalent cover.
Send your SettleMyBond policy schedule to your Nedbank home loans branch in writing (email or letter). Request written confirmation that their cover has been cancelled.
Check your next bond statement to confirm Nedbank's insurance premium is no longer deducted. Your saving starts immediately.
For a step-by-step guide on the cancellation letter and what to say to Nedbank, see How to Cancel Bank Bond Cover.
When you switch from Nedbank bond insurance, SettleMyBond provides the same core protection - and more - at a lower premium:
Your full outstanding bond paid off within 48 hours of acceptance of a valid death claim. Your family inherits the home debt-free.
Permanent disability pays your instalments for 24 months, then a lump sum. Temporary disability cover pays your monthly repayments while you recover.
Your bond repayments are covered for 6 or 12 months (your choice) if you are retrenched under Section 189 of the Labour Relations Act.
20-year saving calculation:
Switching from Nedbank for a R950,000 bond saves approximately R209–R237/month. Over 20 years, that is R50,160–R56,880 back in your pocket - without sacrificing a single rand of cover.
Not sure whether switching is worth it for your situation? Read our full analysis: Is bank bond insurance worth it?
Beyond the significant monthly savings, South African homeowners are switching from Nedbank to SettleMyBond for several key reasons. First, our 48-hour death claim payout means your family receives the money when they need it most - not weeks or months later.
Second, our no medical exam policy makes getting cover simple and stress-free. No doctor visits, no blood tests, no lengthy health questionnaires. Just straightforward protection for your family's home.
Third, being underwritten by a leading AA+-rated South African insurer provides the peace of mind that comes with more than a century of financial strength and an AA+ credit rating. Your claim will be paid.
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 Nedbank's cover compares to SettleMyBond on the metrics that matter.
| Feature | Nedbank Bond Insurance | SettleMyBond |
|---|---|---|
| Monthly premium (R1m bond) | R450–R530/month | R180–R350/month |
| Claims payout speed | 10–20 business days | 48 hours (death claims, from acceptance) |
| Medical exam required | Required above R1.5m | No exam up to R3.5m |
| Underwriter | Nedbank 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 Nedbank 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 Nedbank Home Loan Protection is a straightforward process protected by law. Your Nedbank 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 Nedbank 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 Nedbank Insurance at 0860 555 111 to request cancellation of your bond insurance. Request written confirmation of the cancellation and the effective date. Note: Nedbank requires 30 days notice for insurance cancellation — budget for this in your timeline.
Send your SettleMyBond policy schedule to Nedbank's home loan department confirming that equivalent replacement cover is in place. This satisfies your home loan condition to maintain credit life insurance. Nedbank cannot reject an FSCA-licensed policy that meets minimum NCA cover requirements.
Check that Nedbank 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 Nedbank 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 Nedbank policy, our team will help you navigate the cancellation correctly. Start your switch here →
If you have missed payments on your Nedbank home loan and received a letter from Nedbank'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, Nedbank 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 Nedbank: 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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