Bond Cover

Bond Cover Insurance to Protect Your Home Loan

Bond Cover helps protect your home loan if you experience a major life event that affects your ability to repay your bond. The policy can pay the original bond amount in the event of death, dread disease or permanent disability, while the Instalment Protection Benefit can cover your monthly home loan instalments in the event of illness, injury, temporary disability or retrenchment.

When you apply for a home loan, your bank may require you to have suitable life or bond protection in place. However, you have the freedom to choose your own insurer and are not necessarily required to take the bank’s own insurance product.

Choosing independent bond cover insurance can give you greater flexibility to select cover that suits your home loan, budget and personal circumstances.

Underwritten by Old Mutual Alternative Risk Transfer, a member of the Old Mutual Group.

Bond Cover Insurance Benefits

Bond protection is designed to help protect your home and your family from the financial impact of unexpected events. Depending on the benefits selected and the terms of the policy, Bond Cover can provide:

1. Benefits paid directly to your home loan – qualifying benefits are paid towards your outstanding bond.
2. Death Benefit – a lump sum can be paid directly towards the home loan following a valid death claim, with the benefit paid within 48 hours where applicable.
3. Instalment Protection Benefit – helps cover your monthly home loan instalment if you become ill, injured or temporarily disabled.
4. Permanent Disability Benefit – provides a lump-sum benefit in the event of a valid permanent disability claim.
5. Dread Disease Benefit – provides a lump-sum benefit following a valid claim for a covered dread disease.
6. Retrenchment Benefit – helps cover your home loan instalments for up to 6 or 12 months, depending on the cover selected.
7. No medical exams or HIV tests – no medical examination or HIV test is required, subject to the applicable underwriting requirements.
8. Joint Bond Cover – cover can be arranged for two lives under one policy at an affordable premium.
9. Cede your policy to any financial institution – the policy can be ceded to a qualifying financial institution in South Africa.
10. Full Death Benefit – the full death benefit remains payable following a valid death claim, even where the Instalment Protection Benefit has previously been claimed.
11. No premiums while claiming Instalment Protection Benefit – policy premiums are not payable while a valid Instalment Protection Benefit claim is being paid.
12. Simple application process – we handle the necessary paperwork to make applying for bond protection as easy as possible.
13. Flexible cover amount – you can increase or decrease your cover to suit your home loan requirements, subject to the policy terms.
14. Up to 3 months’ free death cover – free death cover may be provided while your bond registration is pending, subject to the applicable terms and conditions.
15. Cover for the term of your home loan – Bond Cover can be structured to match the term of your bond.
16. Optional excess cover – additional cover can provide further financial security for other needs.

Protect Your Home Loan With Bond Cover

Understanding how bond cover insurance works can help you make an informed decision about protecting your home and your family’s financial future. If you’re buying a property for the first time, our guide to the 1st time home buyer explains some of the important considerations when taking out a home loan.

It’s also important to understand the difference between bond cover vs life cover and bond cover and home insurance. These types of insurance serve different purposes and should not be confused.

If you’re looking for affordable home loan protection, learn more about cheapest bond cover options and find out how much bond cover you need.

You can also learn more about no medical bond cover, ways to protect your home loan, and how to replace your bank’s bond cover.

For additional protection, explore our information on death and disability cover, dread disease cover, joint bond cover and retrenchment cover.

Bond Cover Terms & Conditions

The following are key policy terms and conditions applicable to Bond Cover. Please refer to the full policy documentation for complete details, exclusions and applicable conditions.