Mortgage Repayment Insurance

Protect your mortgage repayments

You’ve worked hard to secure your home and it’s a great feeling. Protecting your mortgage repayments ensures you are not only looking after an important asset but preserving your family’s lifestyle should the unforeseen eventuate.

• 24 cents of every dollar in the average New Zealand household goes towards housing costs - the largest component of household expenditure.*
• 5 out of every 10 males and 7 out of every 10 females, aged 25 years are likely to become disabled due to an illness or accident before they turn 65.**
• 7,600 strokes are reported annually in New Zealand.***

* Source: Statistics New Zealand 2003/2004
** Source: Davies Financial & Actuarial Limited
*** Source: Stroke Foundation of New Zealand
 

What is the payment based on?

The payment is based on the lesser of your minimum monthly mortgage repayment amount and the sum insured.

What benefits are included in my Mortgage Repayment Insurance cover for no additional premium?

Recurrent Disability Benefit

Rehabilitation from an injury or illness can take time and you may experience a recurrence of the condition. In the event of a recurrence we will not apply a wait period if the time you take off work is within six months of the previous time off work, provided it is because of the same disability you initially claimed for.

Partial Disability Cover Benefit

We recognise that in some situations there needs to be a gradual return to work. Mortgage Repayment Cover allows for a payment to be made relative to the hours worked if you are partially disabled.

Sum Insured Adjustment Benefit

This benefit allows for greater flexibility and ensures your cover keeps up with interest rates and increases of the principal of your mortgage. Our Provider will increase the sum insured by up to 10% without you needing to produce any further medical evidence of your state of health.

What other cover is mandatory?

Life Cover

Life Insurance Cover with a minimum sum insured of $50,000 is mandatory if Mortgage Repayment Cover is selected. This cover pays a lump sum to the owner of the cover in the event of your untimely death.

Waiver of Premium Cover

Waiver of Premium Cover is mandatory if Mortgage Repayment Insurance Cover is selected. While you’re receiving any mortgage repayment claim payments, we waive payment of premiums for this and other covers under the same policy.

What other cover can help protect my mortgage and lifestyle?

Serious Illness Cover

Serious Illness Cover provides you with a one-off lump sum payment to reduce the strain, both financially and emotionally, of dealing with one of the defined conditions. You can use the money for whatever you wish, such as medical treatment, rehabilitation expenses, transport costs or paying off the mortgage.

Permanent Disability Cover

Permanent Disability Cover provides a lump sum payment in the event that the life insured becomes permanently disabled, providing financial stability when it’s most needed.