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Mortgage Cover or Mortgage Protection Cover?

Mortgage Cover or Mortgage Protection Cover?

Your home is probably one of the biggest financial investments that you will make. So how do you make sure that your family can stay in it if anything should happen to you?

New Zealanders have over $200 billion in mortgages - according to the Reserve Bank of New Zealand in 2015. And for many kiwis, having mortgage makes them think about who is going to keep the payments going if anything happens to them, or their partner.

In New Zealand, there are two main options to protect our families and ourselves:

Mortgage cover works by paying off the outstanding principal balance of your mortgage should you die, up to a specified amount in your policy. And with Pinnacle Life, if you take out mortgage cover within three months of getting your mortgage, we will reduce your mortgage cover premiums by 5% - for the life of the policy.

With mortgage cover, the monies from the policy are paid to the lender, who repays the mortgage, with any residual going back to the policy owner or their estate.

Mortgage Protection cover, is the other main option, and uses a combination of life insurance cover and income protection insurance to cover your life, and your income if you are unable to work due to injury or illness.

You can also add on trauma cover to your life insurance, which provides you with a lump sum payment should you be diagnosed with a serious or critical illness that’s covered under your policy.

Both life insurance and income protection payments are paid to the policy owner or beneficiary, and can be used to pay your mortgage or other expenses as you choose.

The great thing about Pinnacle Life is that you can choose the policies that best suit your needs. So you could take out mortgage cover and income protection, or life insurance with income protection, depending on what you see your needs as, and also depending on who you want to receive any payments or claims made under your policies.

And once you’ve decided which is the right solution for your needs, then our simple, online process means that for most people, they can apply and get covered online – often in less than 10 minutes. Because we understand that you don’t want to spend hours filling out complex paper forms, as you’ve got better things to do with your time.

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