Mortgage Protection Insurance

When buying a home there are a lot of additional responsibilities. Little things like mowing the lawns and general upkeep of the property, and then there are the big things 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 in Christchurch and elsewhere helps cover your monthly mortgage instalments if your ability to earn is affected by illness, disability or redundancy. In these unfortunate circumstances, income can stop or reduce but your home loan repayments don’t! Government assistance can be a struggle to apply for when you are unwell and the amount you may receive is likely to be significantly less than what you have become used to.

Other mortgage repayment plans are also available such as a recurrent disability benefit, so if the same disability or illness occurs within 12 months the waiting period is waived for the second episode. Plus, you’ll get an unemployment benefit that pays a monthly income if you become unemployed.

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 an agreed amount of money each month if you can't work in your usual job due to illness or injury. It is designed to cover your mortgage or rent payments to ensure you can go on living in your home while you're not receiving your salary or wages. 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 

Want more Information?

For more information on mortgage protection insurance, please contact our insurance adviser Sarah Bately who can help you with any questions you might have, and to assist you into the best option for your personal circumstance.

Contact Sarah >

Latest News

Miller, Scott
27 May 2024

Published by Scott Miller

  • Great experience chatting with Sarah about our insurances. She’s very knowledgeable and explains everything clearly, always makes sure that we have all the information to make an informed decision about how and where is the best place to put our money. Also helps that she’s absolutely lovely and very easy to talk to
    Sarah Martin - 22 May 2024
  • Scott has been absolutely incredible. I was initially hesitant to use a broker but I am beyond glad I did. Prompt, insightful, and reliable - will be using his services into the future.
    Kaleb McCall - 17 May 2024
  • We have never used a Mortgage Broker in the past and Scott Miller was amazing and made our refinancing journey very simple and straightforward. He is very knowledgeable and professional; would highly recommend Advanced Mortgage Solutions to anyone.
    Many thanks Scott.
    Alison and Colin Philip - 10 May 2024
  • I chose to work with Greg to help me buy my first home and I'm so glad I did! I honestly can't recommend him enough, he made the whole process so easy and stress free, helped me every step of the way to understand what I needed to do next and a lot of the time was doing all the work for me. Such an absolute pleasure to deal with, I sincerely appreciate everything so much and will be referring everyone I know your way!
    Cara Eve - 02 May 2024
  • For anyone considering or even contemplating a broker + advisor combination, look no further! I consider myself loyal to those who are strong to their word, provide genuine help and are able to put it in plain English so I can make an informed decision based on my circumstances.
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