A mortgage protection policy protects your home and financial security in times of financial difficulty. It helps maintain your credit rating, and can also cover other mortgage-related expenses. With customisable options and additional benefits such as job search support, mortgage protection insurance is a cost-effective way to prevent defaulting on your home loan.
Mortgage protection insurance is designed to cover your home loan repayments if you’re unable to work due to illness, injury, or death. Unlike lender’s mortgage insurance, which protects the bank, mortgage protection insurance NZ protects you and your family by ensuring the mortgage is paid even if something unexpected happens.
When you take out mortgage protection insurance NZ, you choose how much of your repayments you want covered and for how long. If you’re unable to meet your mortgage because of illness, disability, redundancy, or death (depending on the policy), the insurer will step in and make the payments for you. This keeps your household secure and reduces the risk of losing your home.
Life insurance can clear your mortgage if you pass away, but it doesn’t help if you’re alive but unable to work due to illness or injury. Mortgage protection insurance fills that gap by keeping repayments covered during those difficult times. Having both life insurance and mortgage repayment insurance NZ gives more comprehensive protection for your home and family.
The best mortgage repayment insurance depends on your loan size, income, family situation, and budget. Leading life insurers in New Zealand, such as AIA, Partners Life, Asteron Life, Fidelity Life and Chubb Life, offer mortgage protection options. Working with an adviser ensures you compare across providers and structure cover that fits your circumstances. An adviser like NZ Insurances can explain the fine print and help you decide whether mortgage life insurance, repayment cover, or a mix of both is right for you.