Mortgage Protection Cover
Mortgage Protection Cover provides regular monthly payments if you're unable to work due to illness or injury, helping you continue meeting your mortgage repayments and other ongoing financial commitments.
Mortgage Protection Cover is designed to help protect one of your biggest financial responsibilities - your home loan. If you're unable to work because of illness or injury and meet your policy's claim definition, the policy can provide regular monthly payments to help cover your mortgage repayments and other eligible living expenses.
Unlike Life Cover, which pays a lump sum after death or terminal illness, Mortgage Protection Cover provides ongoing monthly benefits while you're unable to work. This can help reduce financial pressure during your recovery, allowing you to focus on getting better rather than worrying about how you'll keep up with repayments.
Many policies offer flexibility, allowing you to insure up to a specified amount based on your financial commitments rather than your income alone. Depending on the insurer and policy, benefits may also continue if you're only able to return to work part-time or have a reduced income following your illness or injury.
The level of cover, wait period and benefit period can all be tailored to suit your individual circumstances. An adviser can help you choose options that align with your mortgage, household expenses and overall financial goals.
Why It Matters
For many New Zealanders, their mortgage is their largest monthly expense. Mortgage Protection Cover can help you stay on top of your repayments during an unexpected illness or injury, reducing financial stress and helping you remain in your home while you recover.
Common Misunderstandings
"Mortgage Protection Cover only pays my mortgage."
Not always. Depending on the policy, benefits may also be used to help cover other regular financial commitments and living expenses.
"It's the same as Income Cover."
Not quite. While both provide monthly payments if you're unable to work, Mortgage Protection Cover is specifically designed around your financial commitments and often offers greater flexibility in how benefits are structured.
"ACC means I don't need Mortgage Protection Cover."
ACC provides support for accidental injuries but generally doesn't cover illness. Mortgage Protection Cover can provide valuable protection if you're unable to work because of illness, subject to your policy terms.
"I only need this if I have a large mortgage."
Even a smaller mortgage can become difficult to manage if your income suddenly stops. Mortgage Protection Cover can help protect your home and your financial stability.
FAQs about Mortgage Protection Cover
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The amount available depends on your financial commitments, the insurer's limits and your individual circumstances.
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Many policies allow benefits to be used for other eligible household expenses as well as mortgage repayments.
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Some policies include partial disability benefits that may continue to provide support if your income is reduced.
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Although they are similar, Mortgage Protection Cover is generally designed around your financial commitments, while Income Cover replaces a percentage of your income. Your adviser can help determine which option is more suitable for your needs.
Your home is one of your biggest investments, and protecting it is just as important as protecting your income. If you'd like to understand whether Mortgage Protection Cover is right for you, talk to a New Vision Financial Services adviser. We'll help you find a solution that provides confidence and financial security when life doesn't go to plan.