Loan InsuranceCoverage Options
Understand exactly what your loan protection insurance covers and how it protects you and your family in New Zealand.
Coverage varies by policy. The specific benefits depend on your chosen insurer and policy type. Get a personalised quote to see exact coverage details.
Common Coverage Types
Most loan insurance policies include some or all of these coverage options
Death Cover
Remaining loan balance cleared if the insured person passes away, protecting your family from debt.
Terminal Illness
Coverage triggered by diagnosis of a terminal condition — loan paid out immediately.
Total Disablement
Benefits if you become permanently unable to work due to illness or injury.
Redundancy
Loan repayments covered if you lose your job through involuntary redundancy.
Temporary Disability
Income protection during temporary illness or injury recovery periods.
Business Interruption
Coverage for self-employed borrowers during forced business closure.
What's Typically Covered
Common Exclusions
How Much Cover Do You Need?
Determining the right coverage level depends on several factors
Assess Your Loan Amount
Your coverage should match your outstanding loan balance and monthly repayments.
Consider Your Income
Coverage limits are typically capped at your monthly income for sustainability.
Evaluate Your Risk
Job security, health status, and savings determine your coverage needs.
Compare Waiting Periods
Shorter waiting periods cost more but provide faster benefit payment.
Pro Tip
A good rule of thumb is to ensure your coverage matches at least 12-24 months of your outstanding loan balance. This provides sufficient protection during unemployment or recovery periods while remaining affordable.
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Find the Right Coverage for You
Compare coverage options from leading NZ insurers and get personalised recommendations based on your situation.
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