Chubb Life's mortgage repayment cover provides a regular monthly benefit if the insured is unable to work due to illness or injury, structured specifically to meet mortgage repayment obligations during a period of disability. The product is available through licensed financial advisers in New Zealand.
How the cover works
The monthly benefit is set at the time of application to match the insured's mortgage repayment amount. When the insured is unable to work because of illness or injury and a claim is accepted, the monthly benefit is paid directly to the insured to cover the mortgage obligation. The benefit is paid for the duration of the disability, up to the maximum benefit period stated in the policy, or until the insured returns to work, whichever is sooner.
Who it is for
Mortgage repayment cover is designed for New Zealand homeowners with mortgage debt who are concerned primarily about maintaining home loan repayments if they were unable to work. It is a more targeted product than income protection, which replaces a broader portion of income. Mortgage repayment cover suits individuals who have a mortgage as their primary financial obligation and who want a straightforward, structured benefit that matches their loan repayment schedule.
Key features
The benefit amount is structured to match the nominated mortgage repayment, providing a direct relationship between the cover and the financial obligation it protects. Musculoskeletal conditions were the leading cause of income protection and mortgage-related claims paid by Chubb Life in 2024, at 68% of claims in that category.
How it fits into a protection plan
Mortgage repayment cover is often taken alongside life insurance, which pays out the mortgage balance in the event of death, and may complement trauma cover, which provides a lump sum for serious illness. Some clients use mortgage repayment cover as a cost-effective alternative to broader income protection, particularly if their primary concern is maintaining a specific repayment rather than replacing total income.