mortgage repayment cover
What is mortgage repayment cover?
Mortgage Repayment Cover provides a financial safety net should you be disabled as a result of sickness or injury, and unable to meet your mortgage repayments. The monthly benefit is designed to cover mortgage repayments on your behalf during treatment and recovery.
Benefits of mortgage repayment cover
Mortgage Cover can protect your mortgage payments in the event of illness, disability or involuntary redundancy. Mortgage Cover may assist with payment of your mortgage in the event of permanent disability or critical sickness.
It not only covers claim due to sickness or an accident but also covers mental health problems like, stress, depression, anxiety etc.
who can have Mortgage Repayment Cover?
People who live in their own houses and have a mortgage can only have mortgage repayment cover. It is not available for rental investment properties unless there is a shortfall, and the rental mortgage is linked to the residential mortgage.
what is covered?
Mortgage repayments to be paid to lending institutions are covered depending upon the individual’s capacity and the ability to pay premiums.
Mortgage repayment benefit does not have any offsets against benefits like ACC claim, sickness benefit, WINZ benefits received by the insured unlike the Income Protection Cover during the claim period.
what isn’t covered?
Mortgage repayments on rental investment properties.
The Insurance company will not pay any claim if a life assured suffers one of the covered conditions as a direct or indirect result of:
- Self-inflicted harm including attempted suicide.
- Participating in criminal activity.
How much Mortgage Repayment Cover is required?
Each individual who guarantees the mortgage can cover 100% of their mortgage commitments to the bank.
Some insurance companies may allow covering 110% of the mortgage payments to the bank.
If one is not able to afford covering the whole mortgage repayment premium, he/she can also partially cover the mortgage repayments.
To keep premiums affordable, one may opt to have different wait periods like:
- 4 Weeks
- 8 Weeks
- 13 Weeks
It also has options to choose the payment term from 2 years, 5 years and up to the age of 65.