Pays Your Home Loan When You Can't!
Losing your job can place enormous financial pressure on your household. Your home loan remains payable even if your income stops. Retrenchment bond cover is designed to protect homeowners by covering their bond instalments for a defined period if they are retrenched. This safety net ensures that temporary unemployment does not lead to permanent loss of your home.
If you are the primary income earner, your family depends on you to maintain monthly repayments. With bond cover if retrenched, you gain valuable time to secure new employment while your policy takes care of your instalments.
Retrenchment bond cover provides instalment protection if you lose your job due to operational requirements, restructuring, or downsizing. Once your claim is approved, the insurer pays your monthly bond instalments directly to your financial institution.
This cover is specifically structured to prevent forced property sales due to short-term unemployment.
Most retrenchment policies offer two benefit structures:
Choosing between these options depends on your industry stability, savings buffer, and financial obligations.
Retrenchment bond cover typically includes a 90-day waiting period (also known as a deferred period). This means:
The waiting period helps ensure that cover is used for genuine, unforeseen job losses rather than short-term employment changes.
When income stops, bond repayments quickly become stressful. Savings can be depleted within months, and missing payments may result in legal action or repossession.
Bond cover if retrenched protects families by:
Instead of worrying about losing your home, you can focus on securing new employment and stabilising your household finances.
Eligibility requirements generally include:
Self-employed individuals and voluntary resignations typically do not qualify for retrenchment benefits. It is important to review policy terms carefully before applying.
South Africa’s economic environment can be unpredictable. Even secure industries face restructuring and workforce reductions. Instalment protection ensures that your largest monthly financial obligation — your home loan — remains covered during difficult times.
Without retrenchment protection, homeowners may rely solely on savings or family assistance. With proper cover in place, your bond repayments continue uninterrupted for up to 6 or 12 months, providing meaningful financial stability.
Retrenchment bond cover is insurance that pays your monthly home loan instalments for a specified period if you are retrenched.
Depending on the option selected, instalments are covered for up to 6 months or 12 months.
Yes, most policies include a 90-day waiting period before benefits become payable.
No, voluntary resignation or dismissal typically does not qualify. The retrenchment must be due to operational requirements.
Generally, retrenchment cover applies to permanently employed individuals. Self-employed persons may not qualify.
No, payments are usually made directly into your home loan account to ensure the bond remains up to date.
Yes. Many bond protection policies allow you to combine retrenchment, death, disability, and dread disease benefits for comprehensive protection.