Mortgage insurance NZ > Mortgage insurance basics

Mortgage Insurance basics

Mortgage Insurance FAQs

  • Can I insure more than my mortgage balance?

    Yes. You can insure any sum you'd like. This could be just to cover your mortgage, or you can add other cover - for example to take care of other debt or to provide a replacement income for family.

  • How long Repayment Cover claim payments last?

    The usual choices are 2 years, 5 years, until age 65, or until age 70. Choosing a payment period of 5 years means that you'd receive claim payments for a maximum of 5 years. If you choose a "till age 65" payment period, your payments would continue until you reach age 65 (as long as you're disabled during that time).

  • What's a Wait Period?

    Your Repayment Cover claim payments won't start until after your Wait Period. You choose the waiting period (though there is often a minimum of a month). The waiting period that's right for you depends on your situation and how long you could realistically get by without an income (for example do you have savings or an emergency fund you could use to tide you over?).

  • What if my mortgage repayments change?

    If your repayments change, it's important to revisit the amount you have insured - Repayment Cover will not increase automatically, you need to request this.

  • Do Repayment Cover plans have exclusions?

    Yes. These vary depending on the plan, however a typical list of exclusions might include self-inflicted harm, criminal activity, pregnancy or complications thereof lasting fewer than 90 days after the birth.

  • Can I add other types of cover?

    Yes, on LifeDirect you add Trauma Cover to your Mortgage Insurance package. This provides a lump sum if you suffer a covered health condition (like cancer, stroke, heart attack, etc).