An insurance that pays you a monthly amount (after a waiting period and for a payment period of your choice). It is designed to cover your mortgage repayments with your lender, if you were to become disabled as a result of illness or injury.

Mortgage protection insurance NZ pays you a monthly amount (after a waiting period and for a payment period that you choose), if you were to become disabled as a result of illness or injury that meets the criteria of the policy. Most insurers will let you cover up to 115% of your mortgage repayments or rent, or up to 45% of your income. You can choose which calculation works best for your situation. Each insurer also has maximum limits on the amount of cover per month. It’s advisable to discuss these details with your adviser and thoroughly read your policy wordings.

Both Income and Mortgage protection insurance pays you a monthly amount (after a waiting period and for a payment period that you choose), if you were to become disabled as a result of illness or injury that meets the criteria of the policy.

Where they differ is in how they interact with tax and income offsets (such as income still being received while on claim from sources like reduced working hours or ACC payments). Some Income Protection policies require you to prove your income at claim time and also have limits on the amount of cover you can receive. In contrast, Mortgage Protection is generally an agreed value, is non taxable and has no income offsets.

It’s important to consult with your adviser to navigate these differences and structure the policies to suit your specific needs. Additionally, ensure you thoroughly read and understand the policy wordings.

Mortgage Protection policies allow you to select the duration of the payouts if you are on claim and continue to meet the disability criteria. Common options include payment terms of 2 years, 5 years, up to age 65, or up to age 70. It’s important to discuss these options with your adviser and carefully review your policy wordings.

Your policy will start paying out after a waiting period once you meet and continue to meet the disability criteria. Available waiting periods generally include 4, 8, 13, 26, 52, or 104 weeks. It’s important to consider your personal situation carefully before selecting a waiting period. Your adviser can help you understand these options and it is always wise to thoroughly read your policy wordings.

It’s essential to understand your sick leave entitlement from your employer before choosing an insurance policy. Some employers provide sick pay beyond the legal minimum. Identifying your sick leave entitlement will aid in calculating the appropriate waiting period with a Mortgage Protection policy.

While most occupations are eligible for insurance, certain high-risk jobs may be uninsurable due to the nature of the work and the associated risks. Your adviser can help you understand the eligibility criteria and offer specific advice.

When your Mortgage or Income changes, consulting your adviser to review your policy is recommended. Many Mortgage Protection policies offer a built-in benefit that lets you raise your coverage amount by a specified amount without needing underwriting if your Mortgage or Income, increases. This allows you to keep your insurance up to date with your changing lifestyle, without providing any further evidence of your health.

Given that everyone’s situation is unique, an adviser can assess your specific needs and provide research to explain why they recommend one insurance policy over others. They can also compare your current insurance coverage to ensure you are getting the best protection for the premiums you pay. Advisers are independent, allowing them to choose from various providers to best serve their clients’ interests. They are licensed by the government, have met educational standards, and participate in ongoing education to maintain their license. Their work is also regularly audited to ensure compliance with these standards.

Each provider has slightly different online questionnaires, but you will generally be asked about your health and lifestyle, age, occupation, height, weight, smoking/vaping status, gender, hazardous hobbies, family medical history and the amount of coverage you would like.

Yes, While exclusions differ between policies, typical exclusions may include self-inflicted harm, involvement in criminal activities, pregnancy or complications lasting fewer than 90 days post-birth, and failure to follow medical advice or treatment. It’s important to seek guidance from your adviser and carefully read your policy wordings.

As you age, your premiums will rise, and your insured amount may also increase to keep pace with inflation (this adjustment is known as “indexation”). These factors contribute to higher premium costs. You do have the option to decline the annual indexation of the insured amount, which would result in a smaller premium increase.

Indexation means your coverage amount is adjusted each year to reflect inflation. For example, if your policy covers $100,000 and the inflation rate is 3% that year, your coverage would increase to $103,000. This process ensures that your coverage remains adequate as the cost of living rises. You have the option to opt out of this annual increase if you wish.

Insurance premiums are determined by the type, amount, the Waiting & Payment periods, as well as your insurability risk. Key factors to considered when evaluating Mortgage Protection insurance risk include your age, gender, health, lifestyle, your medical history, occupation, smoking/vaping status and family medical history. Higher risks result in higher premiums.

An exclusion, sometimes referred to as a special provision or term, is an event that is not covered by your insurance policy. In New Zealand, most standard Mortgage insurance NZ policies exclude coverage for:

 › Intentional self-harm, including attempted suicide
› Taking part in a criminal activity
› Pregnancy or complications resulting from pregnancy, unless the disability lasts more than 90 days after the pregnancy
› Not following the advice or treatment of, or under the regular care of, a medical practitioner

Additionally, if you have disclosed an existing health conditions or engage in risky lifestyle activities during your application, these may be excluded or a loading might be applied to your premiums. It’s important to review your insurance contract to understand the specific exclusions and what is covered and not covered by your policy.

When you request a quote, it is based on the initial information you provide. Once you submit your details to the underwriters online, they might ask more detailed health and lifestyle questions to assess your risk factors. Depending on your responses, certain aspects of your health and lifestyle may be deemed higher risk by the insurer, which could result in an increase in the original quoted price.

During the application process for Mortgage Insurance, you will need to complete an online questionnaire. Answer all questions to the best of your knowledge and if in doubt refer to your medical records if needed. Incomplete or incorrect disclosure of information can result in the denial of future claims and the cancellation of your policy. Moreover, failure to provide all necessary details may lead to application rejection, potentially affecting if you would like to apply with other insurers. It’s also essential to notify your insurer of any changes in your health status before your application is approved.

Typically, medical examinations or blood tests are not required if there is nothing that you disclose from your medical records that would concern an insurance Underwriter. However, if you are asked to undergo either, there will be no cost to you. Most insurers offer a Health Screening Service, where a registered nurse can visit you at your home or office at a convenient time.

Smokers and vapers pay higher premiums than non-smokers. The good news is that if you quit smoking or vaping, your insurer will reduce the cost of your insurance. Once you have been smoke-free or vape-free for 12 months, you qualify as a “non-smoker” in the eyes of insurers.

Not a problem. If you decide you do not want the policy you can cancel it within 14 days of receiving your policy document (this is known as the “free-look period”). A signed cancellation letter is all that is required. Any premiums paid during the free-look period will be fully refunded to you.

You, your beneficiary, or your legal representative will need to call or write to your insurer (the contact details will be included in the Product Disclosure Statement of your policy), also your adviser can assist you. You’ll be sent a claim form to complete and return back to them, along with proof the insured event took place. Your insurer may also ask your doctor (if applicable) to fill out a form. If you want to make a claim on your policy, you should do so as soon as possible.