Compare Mortgage Protection Insurance in New Zealand
In this report I compare Mortgage Protection Insurance in New Zealand 2016 offered by four major New Zealand insurance companies.
The report is comparing:
- AMP Home Loan Disability Insurance
- Asteron Life Mortgage Insurance
- Sovereign TotalCare Max Personal Mortgage Insurance
- Fidelity Life Mortgage Protector
To provide you with the best informational benefit the report is taking into account age, gender and occupation. Level of benefit is $2,000 across all ages
The report is to compare Mortgage Protection Insurance in New Zealand for Men & Women ages 35, 40 and 45. The reason I have decided to use this age bracket is based on statistical New Zealand home ownership age.
This report uses two types of occupation:
- Male: James Bond (35) (40) (45) Blue colour skilled worker – a technician for instance, class 3.
- Female: Lara Croft (35) (40) (45) Admin, Office worker, class 2.
Occupational choice is based on a typical New Zealand family where a husband works as a technician or a site manager and his wife works as an admin person, often part time.
If you want to receive a report for your personal occupation and your age please do not hesitate to complete the form on the left or below.
The report is designed to provide you with a quick reference and help you to understand importance of Mortgage Protection Insurance in New Zealand comparing cost and benefits.
This report compares Mortgage Protection insurance policies with 4 weeks of waiting period. The reason I’ve taken 4 weeks of waiting period is based on the fact that majority of New Zealand families do not have enough savings which would allow them to have comfortable living beyond 4 weeks.
Keep in mind if you have a mortgage below is a short list of examples of possible scenarios you won’t be able to control:
- Serious sickness – example “cancer” (any type) yours or your partner.(No ACC benefit)
- Temporarily disability- example “you or your partner break(s) a leg above the knee” and cannot work for 6 months. This can be covered by ACC but decisions are taken on “case by case” approach.
- Rare disease, for instance “Legionnaire Disease”. 155 confirmed cases in New Zealand in 2013 (No ACC benefit!). Off work period can be up to two years.
However, you can be well prepared and this report is going to show – how to do it.
Many people in New Zealand think that if the main bread winner is insured then the family would always be able to avoid problems. I think this approach is wrong. Imagine if your partner gets seriously sick or even breaks his or her leg and cannot work due to disability- would your family can be under huge financial stress.
The second mistake many people make in New Zealand is their judgement of an insurance policy: Where insurance premiums play the major factor of “a good or bad”. Typically, if premiums are low that means that the insurance policy is good and if the premiums are high very bad.
This report is aiming to change your view on insurance premiums – low premiums most of the time means “limited” policy.
Most important benefit of a home loan insurance policy is that the benefit you receive in the event of a serious illness or an injury is not offset by ACC. This is one of the advantages this policy has to compare to a typical income protection insurance policy, where the benefit is taken into account and the insured receives less money as the result. To read more about Income protection please click here.
Let me compare Mortgage Protection Insurance policies in New Zealand
Plus provide you with additional and most importantly crucial information which will help you to decide which policy is better for you.
Legend: male, female
|35 years old|
|40 years old|
|45 years old|
As you can see AMP offers the most affordable mortgage protection policy across all ages. This is good.
Would you want to know what is not good with AMP Home loan policy?
It would be really hard to qualify for a “temporarily disability”. Plus, what is also important that AMP takes into account your job at the time of claim. Let me compare (at claim time):
- For a Person Insured in a Permanent Occupation, “Temporary Total Disability” means disability which meets all of the following conditions:
- continues for a period of at least 30 days
- results from injury or illness
- within the first two years of the claim, makes the Person Insured unable, due to bodily injury or illness, to substantially carry out the duties of their usual occupation or business occupation from which they have received an income
- for any remaining period of claim, makes the Person Insured unable, due to bodily injury or illness, to carry out the duties of any Permanent Occupation for which they are reasonably suited by education, training or experience.
- For a Person Insured not in a Permanent Occupation at the onset of the disability, “Temporary Total Disability” means disability which meets all of the following conditions:
- continues for a period of at least 30 days
- results from injury or illness
- makes the Person Insured unable, on medical advice acceptable to AMP, to carry out at least 2 of the 5 Activities of Daily Living, as defined, without assistance from someone else.
I have specifically put important text in “Bold” so that you can see that AMP takes into consideration type of occupation making a distinction between temporary and permanent occupation.
Permanent occupation means being employed in regular work for pay or profit of at least $20,000 per annum.
Conclusion, even an AMP Home loan policy is much cheaper to compare to other policies on New Zealand market it is not the policy you would want to have due to the fact that it does not provide you with full assurance of payment. It is in fact very possible that at claim time you would not be able to qualify due to your medical report or occupation.
It is time for us to discuss a policy which would pay you in the event of a serious illness or even an injury.
From the compared in these report policies only one stands out – this is the Home Protector policy provided by Fidelity Life.
Let me proof that to you.
Home Protector from Fidelity pays if you are seriously sick (cancer) or even if you have one of the specified injuries:
Specific Injury means
- Fracture of skull, jaw 30 days- see it as monthly payment
- Fracture of forearm, collarbone 30 days
- Fracture of wrist 45 days- this means that you are going to get one payment which is calculated on the base of one and a half monthly payments and paid at once.
- Fracture of upper arm, shoulder bone, elbow 60 days- see these as two monthly benefits.
- Fracture of vertebrae 60 days
- Fracture of kneecap 60 days
- Fracture of ankle, heel 60 days
- Fracture of leg below the knee (tibia or fibula) 60 days
- Fracture of leg above the knee (femur), pelvis 90 days- this benefit is paid as three monthly benefits.
- Loss of thumb and index finger of the same hand 6 months
- Loss of one foot or one hand or sight in one eye 12 months
- Loss of one leg or arm 18 months
- Loss of any combination of two of the following:
a hand, a foot, sight in one eye 24 months
- Loss of both feet or both hands or sight of both eyes 24 months
- Paralysis (Diplegia, Hemiplegia, Paraplegia, Quadriplegia) 60 months.
Wait there is more!
If the insured person suffers a specified medical condition as listed below, Fidelity Life Home Protector will deem the insured person to be disabled.
- Angioplasty – triple vessel,
- Aorta surgery,
- Cerebrovascular accident (stroke),
- Chronic renal failure (kidney failure),
- Coronary artery bypass surgery,
- Heart Valve Surgery,
- Major Organ Transplant,
- Myocardial infarction (Heart Attack),
- Multiple Sclerosis,
- Severe Burns.
The policy will pay the Monthly Benefit for six (6) months, irrespective of the waiting period, following the insured person being diagnosed as having suffered from any of the above conditions. The benefit is payable as a monthly benefit or a lump sum calculated by multiplying the monthly benefit by the payment period.
On the top of the above if the person continues to be sick the policy will pay monthly benefits in accordance to the policy schedule.
Please let me know if you have any questions about mortgage protection insurance in New Zealand or you would want to have one to insure that no matter what could happen you will always have your home loan payment paid.
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In this report I compare Mortgage Protection Insurance in New Zealand 2016 offered by four major New Zealand insurance companies. The report is comparing: AMP Home Loan Disability Insurance Asteron Life Mortgage Insurance Sovereign TotalCare Max Personal Mortgage Insurance Fidelity Life Mortgage Protector To provide you with the best informational benefit the report is taking Read more →
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