What is mortgage protection?
A monthly benefit to protect your mortgage or rent repayments should you be unable to work due to illness or accident. These benefits are paid in addition to ACC entitlements you may have, and depending on the provider you can choose your coverage up to 110% of your monthly mortgage repayments.
Choose how your cover’s is calculated
Depending on the provider, normally up to 110% of your monthly mortgage or rent payments.
Support while you recover
Additional benefits for things like rehabilitation to help you get better.
Set it up to suit you
There are flexible waiting periods and benefit periods, and you can choose how long you want the payments to last.
VIEW OUR FACT SHEETS FOR MORE INFORMATION:
Cigna Assurance Extra Mortgage Repayment Cover
Partners Life Mortgage Repayment Cover
Do I need Mortgage Payment Insurance?
Before buying a policy, which is going to cost at least $15,000 to $25,000 over a 25-year mortgage, make sure you need the benefits, and the product is right for you. For those most afraid of being injured at work, ACC provides generous support if you need to take time off work. Additionally, sickness benefits, personal savings, WINZ support and existing insurance policies may step in to provide a safety net similar to mortgage insurance.
1. Sickness benefits – WINZ benefits are minimal, at around $100 to $150 per week, but if you’re unable to work due to illness, you can apply to receive the payment. While it is unlikely to cover your ongoing mortgage payments, we have included it here as a factor for consideration when looking for a policy.
2. Sick leave entitlements – your employer may have a generous sick leave policy, and often those who have worked the longest receiving more extended sick leave allowances. Before buying any mortgage insurance policy, find out what your sick leave benefits are.
3. ACC payments – if you’re more concerned about an injury than developing an illness, ACC covers up to 80% of your income as weekly compensation if you’re unable to work because of a covered injury. This means you can keep up with your mortgage while you recover.
4. Existing insurance – if you have existing income protection insurance and/or health insurance, you may be able to put payments from these policies towards your mortgage repayment. Income protection should offer significant benefits and assist with mortgage repayment. For health insurance, some policies provide lump-sum payments upon a diagnosis to help with family expenses, such as mortgage repayments. However, these benefits are only paid once per claim.