Home/Debt Protection Insurance

Debt Protection Insurance NZ

Multiple debts keeping you up at night? Debt protection insurance covers all your loans and bills if you lose your job, become ill, or pass away. One policy. Complete protection. Peace of mind.

Most New Zealand households carry multiple debts—personal loans, car finance, mortgage, credit cards, and bills. Debt protection insurance manages all of these simultaneously, covering monthly payments across every creditor. From just $12 per week, you get comprehensive protection that keeps your finances secure when life throws challenges your way.

ICNZ Registered Broker Network

256-bit SSL Encrypted

No Broker Fees Ever

24 Hour Response Time

Why Choose Debt Protection Insurance?

Covers all debts simultaneously - personal loans, car finance, mortgage, credit cards, and bills in one policy
Comprehensive protection - death, terminal illness, accident, illness, and redundancy cover included
Direct payments to creditors - all your debts are paid automatically, protecting your credit rating
Affordable from $12 per week - comprehensive multi-debt protection costs less than managing payments alone

Get Your Free Quote

Compare top NZ loan insurers in 2 minutes

256-bit SSL Encrypted

No Spam Guarantee

Response Within 24hrs

What's Covered Under Debt Protection Insurance

All Loans Protected

Personal loans, car finance, boat loans, and any other outstanding debts covered. All your borrowings under one comprehensive policy.

Mortgages & Home Loans

Mortgage payments protected. Your home is secure even if redundancy or illness means you can't work.

Credit Cards & Revolving Debt

Credit card payments and store card minimums covered. All revolving credit protected simultaneously.

Household Bills

Power, water, internet, and essential utilities covered. Your family stays connected and comfortable.

Key Benefits of Debt Protection Insurance

One Policy, All Debts

Stop managing multiple insurance policies. One comprehensive policy covers your entire debt portfolio—mortgages, loans, cards, and utilities.

Complete Risk Coverage

Death, terminal illness, accident, illness, and redundancy all covered. You're protected from every major financial risk.

Automatic Creditor Payments

Claims payments go straight to creditors. Your debts stay current, your credit rating stays intact, and you avoid late fees and penalties.

Simplifies Your Life

No need to call multiple creditors, negotiate payment holidays, or manage a financial crisis. Insurance handles everything while you recover.

Protects Your Credit Score

Automatic payments mean no missed instalments, defaults, or credit damage. Your financial reputation stays pristine even during hardship.

Cost-Effective Peace of Mind

From just $12 per week, debt protection insurance covers everything. Cheaper than individual policies and more comprehensive.

How Debt Protection Insurance Works

List All Your Debts

Tell us about your mortgages, loans, credit cards, and bills. We calculate your total monthly obligations and provide a customised quote for comprehensive protection.

Get Approved & Start Coverage

Simple online application with no medical exam for standard policies. Approval within 24 hours. Your policy becomes active with a short waiting period.

Pay One Monthly Premium

Single monthly payment covers all your debts. No juggling multiple policies or premiums. Everything consolidated into one manageable payment.

When You Need Help, We Pay Your Debts

If a covered event happens, submit your claim. We verify and pay all your creditors directly. You stay protected while you recover and rebuild.

Example Coverage Scenarios

Sarah: Job Loss Protection

Sarah owns a home, has a car loan, and carries credit card debt. When she's made redundant, her debt protection policy covers her $2,800 monthly obligations (mortgage $1,800, car $600, credit cards $400) for up to 12 months while she finds new employment. She stays in her home and keeps her car.

Her monthly premium: $18

Michael: Illness Protection

Michael is hospitalised for three months with complications. Unable to work, his debt protection insurance covers all debt payments ($1,200/month across three loans and utilities). His family stays secure, and when he returns to work, coverage ends automatically.

His monthly premium: $14

The Wong Family: Comprehensive Security

The Wongs have a mortgage, two car loans, and multiple credit cards totalling $4,100 monthly. Their debt protection policy provides death cover (protecting their family from inherited debt) and redundancy cover for both spouses. If anything happens, all debts stay current.

Their monthly premium: $28

What's Not Covered

Debt protection insurance has specific exclusions to maintain affordability. Here's what typically isn't covered:

•Debts in someone else's name or fraudulent borrowing
•Voluntary job resignation (redundancy cover only)
•Pre-existing medical conditions with exclusion periods
•Claims within waiting period of policy start (14-30 days)
•Debts incurred after policy cancellation
•Self-employed or contract workers without special underwriting

Full policy terms and conditions available upon request. Review carefully to understand maximum monthly benefits and exclusions specific to your debts and situation.

Frequently Asked Questions

Can I add new debts to my policy later?▶

Yes. When you take on new debts, you can update your policy to include them. Contact us to add a new mortgage, car loan, or credit card. Your premium adjusts accordingly.

What if I pay off one of my debts?▶

Excellent. Notify us when a debt is repaid. Your premium reduces accordingly. Keep your overall protection while paying only for active debts.

Do you cover debts I already have bad credit on?▶

Yes. Your credit history doesn't disqualify you. We cover debts regardless of past payment issues. However, very recent defaults may require special underwriting.

What if my employment situation changes?▶

Tell us if you change jobs, go part-time, or shift to contract work. We'll assess whether your coverage continues or needs adjustment based on your new employment status.

How much does debt protection insurance cost?▶

Premiums start from $12 per week depending on your total debts and age. Personalised quotes available online in 2 minutes. One payment covers all your debts.

Can I claim multiple times?▶

Yes. Each event (redundancy, illness recovery, return to work, redundancy again) is treated separately. Coverage continues for multiple claims as long as your policy remains active.

Can I cancel anytime without penalties?▶

Absolutely. Month-to-month policies with no long-term contracts. Cancel anytime with no exit fees or penalties. Just give notice and you're done.

Who Should Get Debt Protection Insurance?

High Debt Households

If you carry multiple debts or have total monthly obligations over $2,000, one comprehensive policy is more affordable and simpler than covering each debt separately.

Mortgage & Loan Owners

Homeowners with mortgages plus additional debts benefit from comprehensive protection covering everything in one policy. Keeps your home and lifestyle secure.

Families with Dependents

Families depending on your income are protected from the cascade of problems that come from debt defaults. Keep your family secure during hardship.

Limited Emergency Savings

If you don't have significant savings for emergencies, comprehensive debt protection becomes critical insurance against financial disaster.

Protect All Your Debts Today

Get a free quote in just 2 minutes. From $12 per week you can cover all your loans, mortgage, and bills. No medical exam, approval in 24 hours.

Get a Free Quote