Mortgage Protection

At a glance:

Working when you can’t.

Mortgage protector can be a combination of:

  • Lump sum cover (in case of death, serious illness or permanent disability)
  • Regular monthly payments when you are unable to work due to sickness or injury.
  • Available for residential and investment properties as well as tenants to ensure their rental payments.
  • Regular monthly payments for redundancy are available as an optional benefit.
  • Additional cover can be included on completion of a full application if required.

Why you need it:

The purchase of your home is one of the largest financial commitments you will make. Once you have committed yourself to a home loan, your lender typically expects you to meet your repayments, even when you can’t work due to sickness or injury. No one likes to think about serious illness or death but it makes sense to reduce the financial impact of such possibilities.

Have you thought about how your dependants would repay the mortgage on your home if you to die suddenly or be unable to work due to serious illness or a prolonged period of disability?

Mortgage protector works when you can’t through a range of cover options that are designed to meet your protection needs.

Key facts:

Ages: Entry age is from age 16 to 59

Benefit options:

Life cover
On your death, or on the diagnosis of a terminal illness, a lump sum to go towards paying off the mortgage (or a part). Includes: Bereavement benefit A benefit of up to $10,000 to assist with funeral expenses, travel and accommodation. This benefit is an early payment of the life cover.

Trauma
The trauma option will pay a lump sum if you suffer one of a number of listed trauma conditions. This cover is available as a stand-alone or an accelerated benefit (in conjunction with life cover). Includes:

Child’s benefit
Your children (either by birth or legal adoption) between age 2 and 18 are covered for the lesser of $50,000 or 20% of the parent’s trauma sum insured should they be diagnosed as suffering from one of the listed trauma conditions.

Life Care – Unique to Fidelity Life
The life care option will pay a lump sum of 20% of the sum insured if you suffer one of a number of listed trauma conditions. This cover is only available as an accelerated benefit (in conjunction with life cover). Includes:

Child’s benefit
Your children (either by birth or legal adoption) between age 2 and 18 are covered for the lesser of $50,000 or 20% of the parent’s life care sum insured should they be diagnosed as suffering from one of the listed life care conditions.

Total and Permanent Disability
This provides a lump sum to help meet your mortgage commitments if you are totally and permanently disabled.

Monthly Mortgage Repayment:
This is an agreed monthly benefit to help meet your contractual mortgage repayments or other similar type obligations. This is payable if you are totally or partially unable to work due to sickness or injury. The benefit is based on either 110% of your contractual mortgage repayments or 40% of your income. Other income is typically not offset against this benefit for up to certain amounts.

You have a choice of a 4, 8 or 13 week waiting period and a benefit period of 2 years, 5 years or to age 65.

Standard features include:

Specific Injury Benefit
If you suffer one of the listed specific injuries, a monthly benefit is payable in advance for a minimum period of time-based on the injury (table below). Specified medical condition If you suffer one of the listed specified medical conditions, a minimum benefit of six times the monthly benefit is payable (see table below).

This benefit is payable monthly or as a lump sum.

Optional redundancy Benefit If you are made redundant or declared bankrupt, an optional benefit may be payable for up to six months. The maximum amount payable is $4,000 per month. Redundancy benefit is only available if you have a mortgage or are renting.

Specified Medical Conditions
Angioplasty – triple vessel*
Aorta surgery*
Cancer*
Cardiomyopathy
Cerebrovascular accident (stroke)*
Chronic renal (kidney) failure
Coronary artery bypass surgery*
Heart value surgery*
Major organ transplant
Myocardial infarction (heart attack)*
Paralysis – diplegia, hemiplegia, paraplegia, quadriplegia, tetraplegia
Severe burns
* Cover for these conditions does not start until 3 months after the policy commencement date or the date of reinstatement.

Specified injuries:

Specified injury  The payment period
Fracture of skull, jaw 30 days
Fracture of forearm, collarbone 30 days
Fracture of upper arm, shoulder bone, elbow 45 days
Fracture of vertebrae 60 days
Fracture of kneecap 60 days
Fracture of ankle, heel 60 days
Fracture of leg below the knee (tibia or fibula) 60 days
Fracture of leg above the knee (femur), pelvis 60 days
Loss of thumb and index finger of the same hand 90 days
Loss of one foot or one hand or sight in one eye 6 months
Loss of one leg or arm 12 months
18 months

Loss of any combination of two of the following:

A hand, a foot, sight in one eye 24 months
Loss of both feet or both hands or sight of both eyes 24 months
Paralysis (diplegia, hemiplegia, paraplegia,
quadriplegia, tetraplegia)
60 months