Pays Your Home Loan When You Can't!
Your home is one of your biggest financial commitments. Bond cover for death ensures that your outstanding home loan is settled if you pass away, preventing your family from losing their home during an already devastating time. In addition, disability bond cover provides financial protection if you become temporarily or permanently unable to earn an income.
Without proper protection, your loved ones may be forced to sell the property to repay the outstanding bond. With the right permanent disability insurance linked to your home loan, you can ensure your bond is paid or maintained even if life takes an unexpected turn.
Bond cover for death pays a lump sum directly into your home loan account if you pass away during the policy term. The payout is typically equal to the insured amount selected when you took out the policy.
This structure ensures a fast and efficient claims process while protecting your dependants from inheriting debt.
Disability bond cover protects your home loan if illness or injury prevents you from working. There are two main protection layers:
If you are unable to work for 90 days or more due to illness or injury, your policy can cover your monthly bond instalments while you recover.
If you become totally and permanently disabled, the policy may pay a lump sum equal to the insured amount directly into your bond account. This settles the outstanding loan and prevents long-term financial hardship.
The permanent disability payout structure typically works as follows:
This ensures both short-term relief and long-term security.
When selecting permanent disability insurance linked to your bond, you may have two benefit structures to choose from:
The full-term option offers more comprehensive long-term protection, especially for primary income earners.
Many homeowners ask whether their bond cover for death only pays the outstanding loan amount. The answer depends on your selected cover amount.
If your insured amount is higher than your remaining bond balance:
This added flexibility means your bond protection policy can double as additional life insurance protection for your family.
Many South Africans focus on life cover but overlook disability risks. Statistically, you are more likely to become disabled than to pass away during your working years. Without income, bond repayments quickly become unaffordable.
Disability bond cover ensures:
Whether you are a first-time homeowner or have years left on your bond, proper protection provides long-term financial stability.
Once all required documentation is received and the claim is valid, the lump sum is paid directly into the home loan account. Processing times depend on the insurer but are typically handled as quickly as possible.
Permanent disability is generally defined as a medical condition that prevents you from performing your own occupation, and in some cases, any occupation suited to your education, training, or experience.
Yes. While life insurance pays beneficiaries directly, disability bond cover specifically protects your home loan by paying instalments or settling the bond.
Yes. You can select a cover amount that matches or exceeds your outstanding home loan balance.
Some policies allow you to retain the life cover component even after your bond is settled, providing continued protection for your beneficiaries.
Most policies have a 90-day deferred period before instalment benefits begin.