Live your life,
while we protect
your mortgage
Protecting
your financial
wellbeing at
every stage
of life.
Mortgage CoverWho’s it for?
Put simply, anyone with a home loan. Mortgage Protection Cover can provide essential financial backup until you have paid off your home loan. For property investors, Mortgage Protection Cover could help to keep your property portfolio intact (Life Cover only).
An important
financial safety net
If you have a home loan, mortgage protection insurance helps to cushion you from future financial problems and protect your investment by ensuring your home stays in your possession. Depending on the types of cover you choose, it could clear your home loan completely, reduce it or cover repayments when you’re unable to work.
Recognise the risks
There are five key areas of risk that every home owner with a mortgage needs to think about:
1. Health problems requiring hospitalisation. 2. Being unable to work for several months. 3. Suffering a trauma (illness or accident). 4. Being unable to work ever again. 5. Premature death.
Summary of Risks
Risk management for hospitalisation
While it isn’t strictly a form of mortgage protection, health insurance can contribute to your future financial security. As well as covering the costs associated with specialists, hospitalisation and surgery, it allows you to choose when and where you are treated.
For more information about health insurance, please refer to AIA New Zealand’s Superior Health Benefits flyer.
Risk management for being unable
to work for several weeks or months
An accident, illness or temporary disability at some time during your working life is a very real possibility.
After an agreed waiting time, Mortgage Income Protection Cover pays your mortgage repayments either until you are well or until your benefit period is reached. Optional redundancy cover is also available providing up to six months instalment cover.
Risk management for trauma
A trauma is a serious illness or disability, such as critical cancer, heart attack or paralysis, experienced by one in five people between the ages of 35 and 651.
Mortgage Trauma Cover pays a lump sum when specific conditions, as specified in the policy wording, are diagnosed. The sum can reduce or totally repay your mortgage.
Risk management for being
unable to work ever again
Statistics tell us that for every death in our country, 17 people will become disabled to the point where they can’t work2.
Mortgage Total Permanent Disability Cover is designed to pay a lump sum if you are permanently disabled due to illness or accident. The money can be used to reduce or totally repay your mortgage.
The First Risk
The Second Risk
The Third Risk
The Fourth Risk
The Fifth Risk
Your Insurance
Adviser’s recommendation
1. General Cologne Life Re. Australia 2002. 2. BERL Disablement Research, National Health Statistics Centre. 3. Statistics New Zealand (2004), New Zealand Life Tables 2000-2002.
Risk management for premature death
In New Zealand, one in six men and one in nine women over 30 will die between the ages of 30 and 653.
Mortgage Protection Cover and/or Life Cover pays out if you die prematurely. It also gives you the option of full payment if you are diagnosed as terminally ill (if death is likely within 12 months). The lump-sum payment can reduce or totally repay your mortgage.
Premature death isn’t really about you, it’s about the people who depend on you for financial and emotional support. They’ll need help in the short, medium and long term.
Mortgage Cover
What do you get?
AIA New Zealand’s Mortgage Protection Cover offers features that make it one of the best risk solutions in the market. These include:
Decreasing term cover
You can reduce premium amounts by closely aligning your level of cover to your outstanding mortgage balance. Cover can be decreased by 2%, 3%, 4% or 5% of the initial cover amount per annum.
Optional fixed term benefit
Fixed term cover, usually in line with the expected life of your mortgage, ensures you maximise cover and minimise expense.
Investor option
AIA New Zealand can offer the Mortgage Protection Cover (and other lump-sum) benefits to property investors as well as owner-occupiers.
Your Mortgage Cover Options
The following types of Mortgage Cover options are available: • Mortgage - Life Cover
• Mortgage - Total and Permanent Disability • Mortgage - Trauma Cover
• Mortgage - Waiver of Premium
• Mortgage - Income Protection (only owner occupiers) This benefit is based on your mortgage repayments.
An optional involuntary unemployment or redundancy benefit is available.
• Mortgage - Vital Income Protection (only owner occupiers) This benefit is based on your mortgage repayments in the event of disability caused by a specified critical illness.
Matching the cover
How can you match the amount of cover to your needs?
When choosing Mortgage Protection Cover it is essential to select enough cover to repay your mortgage.
At the same time you may want to ensure that your cover reduces as your mortgage comes down, so that you’re only paying for what you need.
There are several options to choose from including Level Cover, where the cover stays the same until the mortgage is repaid entirely or Decreasing Term Cover, where the level of cover reduces as your loan commitment gets smaller - of course the premiums also reduce as the years go by.
mortgage protection insurance
helps to cushion you from future
financial problems and protect
your investment.
American International Assurance Company (Bermuda) Limited, trading as AIA New Zealand.
Disclaimer
This insurance brochure has been designed to provide general information only and should not be regarded as a full explanation of the contract or as a substitute for obtaining professional advice related to your individual circumstances. Please refer to the terms and conditions of the relevant policy document for full details of the contract and the limitations and exclusions that apply.
About AIA New Zealand
About the AIA Group
AIA New Zealand is the trading name of American International Assurance Company (Bermuda) Limited. Since the company arrived in New Zealand in 1981, we’ve consistently provided the market with innovative personal and business insurance products that suit the Kiwi way of life. Today we offer a complete range of risk management products that focus on the needs of our customers.
AIA New Zealand is based in Auckland with regional offices in Wellington, Hamilton and Christchurch. However, through our Insurance Adviser network, we reach every corner of the country.
AIA New Zealand is a member of the Investment Savings and Insurance Association (ISI), the Insurance and Savings Ombudsman Scheme (ISO) and the Health Funds Association of New Zealand (HFANZ).
The AIA Group is a leading pan-Asian life insurance organisation with a unique heritage of serving the world’s most dynamic region for 90 years. It provides consumers and businesses with products and services for life insurance, retirement planning, accident and health insurance as well as wealth management solutions. Through an extensive network of 250,000 agents and 20,000 employees across 15 geographical markets, the AIA Group serves over 20 million customers in the region.
The AIA Group has branch offices, subsidiaries and affiliates located in jurisdictions including Australia, Brunei, China, Hong Kong, India, Indonesia, Macau, Malaysia, New Zealand, Singapore, South Korea, Taiwan, Thailand and Vietnam. Subject to regulatory approvals, AIG intends to incorporate the Philam Group of Companies, based in the Philippines, into the AIA Group.
AIAMK-036-01 CD5544-V6-08/09
