Mortgage insurance - common questions

If you have a question don't hesitate to give us a call on 0508 INFORM (46 36 76) or fire us an email - we're here to help!

Q. My bank has offered me mortgage insurance – should I take this?
A. Have a word with us first. You might be surprised at the difference in premium and levels of cover that you’ll see. The difference is that we can help you look at a wide range of packages and options (because we work with a wide range of great NZ insurers). On the other hand, most banks only offer one in-house option. So, without meaning to blow our own trumpet, we confident you’ll find a chat with us worthwhile!

Q. I want to cover my mortgage, but I also want to keep costs to a minimum – what’s the best insurance to get?
A. Starting with life insurance (that would pay off your mortgage on death) is usually the top priority. Minimising costs is always important, especially if you’re newly adjusting to servicing a mortgage. Startign with a chat with your adviser about your individual situation is the best first step – there are always way to minimise premiums while making sure you have solid protection. Our Advisers know all the tips and tricks for reducing unnecessary costs – so give us a call or email and we can help!

Q. I have a partner – should we both get cover?
A. The short answer is “probably” – but it does depend on your situation. Most couples share responsibility for their mortgage – and if you share responsibility for servicing a mortgage with your partner then we’d almost certainly recommend you are both covered.

Q. I’m responsible for paying for the mortgage – my partner doesn’t contribute financially. Should they be insured too?
A. If one partner doesn’t contribute financially to taking care of your mortgage (for example they care for children full time and don’t work outside the home), some cover is still worth considering. The reason? If they suddenly died or were disabled, you’d probably face a lot of unexpected costs (childcare, home help) – and knowing that the mortgage costs were taken care of would help in a financially stressful time.

Q. Will mortgage protection cover me if I’m made redundant?
A. Sometimes yes, but it depends on the Policy. Adding cover for redundancy actually makes your insurance package more expensive – and if you look at the fine print you’ll see that policies will only pay for a very short period. Most people are better off buying insurance to cover death or disability - and building up their own emergency fund to cover a temporary redundancy. Death or disability can cause your financial situation to go seriously wrong, so these are a much bigger priority than cover for losing your job.

Q. If I get mortgage repayment insurance, and then get injured, I’ll get ACC. Will my mortgage insurance pay for my mortgage repayments?
A. Some Policies will “offset” your mortgage repayment insurance against your ACC payments (which means that they won’t pay as much if you’re getting ACC). But other Polices disregard ACC completely and will pay the full amount. This answer to this question can get kind of technical, so the best option is to give us a call to discuss your individual situation.


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