Mortgage Protection Insurance

Buying a home comes with a whole set of new responsibilities. Sure, there are little things like mowing the lawn and keeping up with general maintenance, but there are bigger ones like paying the mortgage, rates and insurance. It's not only a commitment that affects you, but also your family.

What would happen if your household suffered a loss of income due to critical illness or disability? Would you have the resources available to keep paying off your home loan, and safeguard your family’s future? The last thing you'll want to see is your home repossessed, if for some reason you can’t meet your mortgage repayments. You can keep your home safe from events outside of your control with mortgage protection insurance.

If you have a mortgage, it’s a good idea to protect yourself against all eventualities. Our insurance adviser can guide you toward insurance solutions that ensure your home stays safe and in your hands.

What is Mortgage Protection Insurance?

Mortgage protection insurance helps you pay your mortgage if you can't work due to illness, disability, or losing your job. In these unfortunate circumstances, income can stop or be reduced but your home loan repayments don't! Government assistance can be a struggle to apply for when you are unwell, and the support you receive is often less than what you need.

There are other options available. For example, if you have a recurring disability, you won't have to wait for payments again if the same issue comes up within 12 months. Plus, if you lose your job, you can get monthly payments to help you cover your expenses.

It’s reassuring to know that you have something to fall back on when life isn’t running so smoothly.

What does Mortgage Protection Cover?

Mortgage and Rent Cover pays you a set amount of money each month if you can't work in your usual job due to illness or injury. This money helps pay your mortgage or rent, so you can stay in your home even when you're not earning your usual salary. You can also choose to cover yourself against redundancy and bankruptcy.

The benefits of Mortgage Protection Insurance

In addition to receiving funds to cover your mortgage and rent payments, mortgage protection insurance also offers:

• Up to 110% of your Mortgage Repayments, every month you're off work for up to age 65.  
• Flexibility for you to select how long you have to be off work before you receive payments
• Choice in payment periods to suit you
• Access to lower premiums for a longer wait period
• In most cases no offsets against ACC and ongoing passive income

Common questions about Mortgage Protection Insurance

How much mortgage protection do I need?

The level of mortgage protection cover you choose will depend on your needs. Things you'll need to consider:

• Do you have mortgage payments to cover?
• How about credit card bills or hire purchases?
• Is your mortgage covering all your regular spending such as groceries, electricity bill etc. Or does your partner work and contribute too?

Can I use my mortgage insurance benefit money on anything?

If your claim is accepted, it's up to you to decide how to use the money. Maybe you'll need to cover bills like your mortgage, day-to-day bills, or to ensure that your family's lifestyle is less affected by your inability to work.

Can my spouse/partner be covered too?

We don't offer joint mortgage protection insurance in Christchurch and elsewhere. However your partner can apply for mortgage protection from Cigna separately.

If you take a mortgage of $50,000.00 per annum for a person 30 years of age with 30 years until retirement, at 65 years of age the loss of Mortgage would be $1,500,000.00. 

We’re here to help you find out the right level of cover for you needs