Mortgage Protection Insurance in New Zealand
Mortgage protection insurance NZ helps keep home loan repayments covered if illness or injury stops you working. It protects your home from income shocks.
You get a licensed adviser’s written read on whether your mortgage repayments would keep being met if illness or injury stopped your income. Free, and nothing changes unless you say so.
Written by Henry Smith, Financial Adviser (FSP1010699). Reviewed by Smiths Insurance & KiwiSaver, a licensed Financial Advice Provider (FSP712931). Updated 8 September 2026. How we compare · How we are paid
Disease or illness is the most common cause of disability among New Zealand adults, at 42%, the single largest reason people stop being able to work. Stats NZ, Disability Survey: 2013 (the most recent national survey of its kind), Survey year 2013.
An adviser's view
Mortgage protection gets arranged at the bank, in the same appointment as the loan, and then never looked at again. What I check first is not the price. It is whether the cover pays the repayment or a lump sum, how long it keeps paying, and whether it responds to illness as well as accident. Those three answers change the outcome most.
What the review covers
- Whether your current cover would actually pay off your mortgage if you died or became permanently disabled
- If the cover amount still matches what you owe banks have changed, house prices have moved, your mortgage balance has shifted
- Whether you're overpaying for cover through the bank when a standalone policy could be better and cheaper
- If your policy includes total permanent disability (TPD) cover, or just life cover
What people usually miss
Took whatever the bank offered
When you got your mortgage, the bank probably offered insurance at the same time. Most people said yes without comparing. Bank-offered cover is often more expensive and has fewer features than standalone policies.
Cover hasn't kept up with house prices
If you took out mortgage protection years ago, your cover amount may not reflect what you actually owe today. Refinancing, topping up, or changing terms can all create gaps.
Don't know if they're overpaying or under-covered
Many Kiwis are paying for mortgage protection that doesn't quite fit. Either paying too much for what they need, or not enough to actually clear the mortgage. A check sorts this out.
More about mortgage protection in NZ
Mortgage protection insurance in New Zealand is built around your home loan, with benefits usually paid monthly to cover repayments when you cannot work. This differs from life insurance, which typically pays a lump sum to beneficiaries.
Cover design can vary significantly
Waiting periods, benefit periods, and offsetting with other income all affect claim outcomes. If you accepted cover from a bank years ago, a review often uncovers either feature gaps or savings opportunities.
For first-home buyers and growing families, this cover can reduce the risk of forced sale during prolonged illness. A practical policy check aligns your repayment obligations with realistic income replacement needs.
QuoteHub compared with the alternatives
The premium an insurer charges is the same whether you buy direct, through a broker, through a comparison site, or through QuoteHub, because adviser commission is built into the insurer’s standard price rather than added to it. What changes is how much of the market you see, whether anyone writes down why one policy was recommended over another, and who lodges the claim when it matters. QuoteHub compares 8 New Zealand insurers named in full on our disclosure page, gives you a written recommendation, and stays with you at claim time. Going direct gives you one insurer and its own claims team. A broker usually does what we do, though panel sizes differ, so ask for the list. A comparison website is usually a quote list rather than advice, and some are owned by an insurer or by a business that resells enquiries.
Frequently asked questions
What's the difference between mortgage protection and life insurance?
Mortgage protection is specifically designed to pay off your mortgage if you die or become permanently disabled. Life insurance pays a lump sum to your beneficiaries that they can use for anything. Some people have both, some have one that covers everything.
Is bank mortgage protection worth it?
It's convenient but often not the best value. Bank policies are typically more expensive, may have fewer features, and the bank is the beneficiary not your family. A standalone policy often gives better cover for less.
What if I refinanced or topped up my mortgage?
If your mortgage balance has increased since you took out protection, there may be a gap between what you owe and what your policy would pay. That's one of the most common issues a check picks up.
Does mortgage protection cover both partners?
It can. Many policies offer joint cover or individual policies for each partner. The right setup depends on your income split, who's on the mortgage, and what you'd need if either person couldn't contribute.
What happens to my cover if I sell the house?
That depends on the policy. Bank-arranged cover usually ends when the mortgage does. Standalone policies are more flexible and can often be adjusted or continued. An adviser can explain your specific situation.
Related guides
- Life insurance in New Zealand
- Income protection insurance NZ
- Insurance calculator for baseline cover
- How we compare insurers, and our sources
- How we are paid
- What you get from the review
The insurers behind mortgage protection in New Zealand
Financial strength is the one comparable, published fact about an insurer: an independent agency's view of its ability to pay claims. Every grade below is the insurer's own published disclosure for the named New Zealand licensed entity, linked and dated. A rating belongs to that entity, not to a brand or a product name.
| Insurer | Licensed entity | Financial strength | Rating as at | How you can buy |
|---|---|---|---|---|
| AIA New Zealand | AIA New Zealand Limited | AA (Fitch, source, retrieved 14 Aug 2026) | Date not published | Adviser or direct |
| Asteron Life | Asteron Life Limited | A+ (Fitch, source, retrieved 14 Aug 2026) | Date not published | Through an adviser |
| Chubb Life NZ | Chubb Life Insurance New Zealand Limited | A (Excellent) (A.M. Best, source, retrieved 14 Aug 2026) | Date not published | Adviser or direct |
| Fidelity Life | Fidelity Life Assurance Company Limited | A- (A.M. Best, source, retrieved 14 Aug 2026) | Date not published | Through an adviser |
| Momentum Life | Momentum Life Limited (FSP472286) | B (Fair) (A.M. Best, source, retrieved 14 Aug 2026) | 11 Feb 2026 | Adviser or direct |
| Partners Life | Partners Life Limited | A (Excellent) (A.M. Best, source, retrieved 14 Aug 2026) | 5 Feb 2026 | Through an adviser |
Ratings are not a recommendation, and they say nothing about what a policy covers or what it costs. They were read from each insurer's own disclosure on 14 Aug 2026 and can change. Every licensed New Zealand life and health insurer, with its rating · How we compare
What the life cover behind mortgage protection includes, insurer by insurer
Mortgage protection in New Zealand is usually life cover, sometimes with a monthly benefit attached, written on the same contracts as any other life policy. These are the twelve features that decide what it pays.
| Feature | What it decides | AIA New Zealand AIA Living Life Cover | Chubb Life Assurance Extra Life Cover | Fidelity Life Life cover | Partners Life Life Cover | Asteron Life Life Cover |
|---|---|---|---|---|---|---|
| Entry age | The ages at which the insurer will accept a new application. | Not published | Not published | 16 to 75, with no expiry age while premiums are paid [1] | Not stated; cover can be taken from $1,000 of sum insured upwards [2] | Not published |
| Maximum sum insured | The largest amount of cover the published documents commit to. | Not published | Not published | Not published | Not published | Not published |
| Terminal illness advance | Pays the cover early once life expectancy falls below a stated period. | Up to 100% of the Life Cover Benefit where the life assured is expected to live no more than 12 months [3] | Early payment of the Life Cover sum insured on a terminal illness likely to cause death within 12 months [4] | The full amount insured, on a prognosis of less than 12 months [1] | 100% of the sum insured on a prognosis of 12 months [2] | The Life Cover payment, on a prognosis of less than 12 months [5] |
| Advance on a specified terminal condition | A part payment on a named diagnosis, before the 12-month test is met. | Specified Terminal Conditions Benefit: the lower of 30% of the Life Cover Benefit or $250,000 [3] | Not published | 30% of the amount insured, up to $250,000, in some cases [1] | Terminal Illness Advance Benefit: 30% of the sum insured to a maximum of $600,000, on listed conditions or a 24-month prognosis [2] | The lesser of $250,000 or 30% of the sum insured, on listed conditions or a life expectancy of 24 months or less [5] |
| Bereavement or funeral advance | Money released on notification of death, before probate. | Bereavement Support Benefit: $15,000 where the life assured is the sole policy owner, $25,000 where there is a surviving policy owner [3] | Early payment of up to $25,000 towards funeral expenses [4] | An early payment of up to $25,000 towards funeral costs [1] | The lesser of $25,000 or the sum insured, immediately on notification of death [2] | A funeral advancement of $15,000 or $25,000 from the Life Cover [5] |
| Financial and legal advice benefit | Reimburses professional advice on what to do with the payment. | Up to $2,500 including GST towards financial planning or legal advice, from a provider the insurer accepts [3] | Reimburses up to $2,500 of the cost of receiving professional advice [4] | Not published | Up to $3,000, in addition to the sum insured [2] | Up to $2,500 for financial planning and legal advice, plus up to $2,500 of grief counselling [5] |
| Repatriation | Brings the person home if they die overseas. | Reimburses the policy owner for the cost of returning the life assured [3] | Reimburses costs up to $20,000 to return the remains to New Zealand [4] | Not published | Up to 25% of the sum insured to a maximum of $20,000, in addition to the sum insured [2] | Reimburses up to $15,000 or $25,000 of the direct costs [5] |
| Special-events increase, no underwriting | Raises the cover after a mortgage, a baby or a pay rise without new medical evidence. | The lower of 50% of the original Life Cover Benefit or $250,000 per event; not available to a life assured over 55, and the request must be made within 12 months of the event [3] | Up to $250,000 on a qualifying life event, without further assessment of health [4] | Increases available any time before age 55 without medical evidence; amount not stated [1] | The lesser of $300,000 per increase, the actual mortgage increase, or five times the annual salary or net business profit increase [2] | Available on a special event without medical underwriting; amount not stated [5] |
| Increases with no event required | A guaranteed way to top up cover without waiting for a life event. | Optional Life Future Insurability Benefit: total increases limited to the lower of twice the original Life Cover Benefit or $1,000,000, offered before each third anniversary [3] | Not published | The amount insured can be set to increase each year against inflation [1] | Future Insurability Option: up to 10% of the original sum insured each policy anniversary, for up to 10 years [2] | An inflation adjustment is offered each year at the consumer price index, with no further underwriting [5] |
| Premium suspension | Puts the policy on hold through redundancy, parental leave or study. | Cover can be suspended for up to 12 months with no premium payable, and reinstated at the end without further medical evidence [3] | Not published | Payment breaks and temporary suspension in certain circumstances, including redundancy, going overseas and study [1] | Not published | Not published |
| Waiver of premium | Keeps the cover in force while you are too unwell to earn. | Not published | Premium Cover is a separate cover in the Assurance Extra suite, and is mandatory alongside Income Cover [6] | Not published | Not published | 'We pay your premiums' benefit, where illness or injury stops you working more than 10 hours a week in your usual job [5] |
| Children's cover attached to the policy | What the policy does for a dependent child, at no extra application. | Parents Grieving Benefit: $2,000 where the child is under 10, $15,000 from age 10, and it does not reduce the sum assured [3] | Not published on the Life Cover page; a complimentary children's benefit of up to $50,000 sits under Trauma Cover [7] | Children aged 3 months to 20 years are covered under Trauma cover for $50,000 or 20% of the cover amount, whichever is lower [8] | Dependent Child Funeral Support Benefit: $2,000 before age 10, $15,000 from 10 to 21, in addition to the sum insured [2] | Free Kids Cover of $50,000 of trauma cover for each child or grandchild, which can be increased to $200,000 [5] |
- [1] Fidelity Life, Life cover, read 8 Sep 2026.
- [2] Partners Life, Life Cover overview, Partners Life Journey Plan, PLJP_OVERVIEW_LIFE COVER_V03_1025, read 8 Sep 2026.
- [3] AIA New Zealand, AIA Living Life Personal Cover Policy Wording, 10 October 2023 (1101 AL-LIFE version 5), read 8 Sep 2026.
- [4] Chubb Life New Zealand, Assurance Extra, Life Cover and Life Income Cover, read 8 Sep 2026.
- [5] Asteron Life, Life Cover brochure, RP321 (09/24), read 8 Sep 2026.
- [6] Chubb Life New Zealand, Assurance Extra Income Cover brochure, cig0007 v5, read 8 Sep 2026.
- [7] Chubb Life New Zealand, Assurance Extra Trauma Cover brochure, cig0019 v6, read 8 Sep 2026.
- [8] Fidelity Life, Trauma cover, read 8 Sep 2026.
How we compared
We compared 5 insurers. Every value in the table above was transcribed from one of these documents on the date shown beside it: AIA New Zealand's AIA Living Life Cover document, Chubb Life's Assurance Extra Life Cover document, Fidelity Life's Life cover document, Partners Life's Life Cover document, Asteron Life's Life Cover document. Nothing was taken from an adviser summary, a comparison site or a previous version of this page.
Rows were chosen for the features that decide what a claim pays and that an insurer publishes: entry ages, benefit limits, definitions, waiting and stand-down periods, and the rights you keep after a claim. A cell reads "Not published" where we could not find the fact stated in the documents listed under the table on the date they were read. It is a statement about those documents, not a claim that the insurer has no such benefit.
Price is not compared here, and not because it does not matter. Premiums depend on your age, your health, your occupation and the underwriting decision, so a published figure would be someone else's price rather than yours. Everything on this page is true before anyone is underwritten. How QuoteHub compares insurers.
Exclusions and things to note
The parts of a mortgage protection contract that decide a declined claim are rarely in the brochure headline. Each of the following is quoted from the policy document or product page linked beside it, and each one is a real limit on a real policy sold in New Zealand today. Your own schedule may carry personal exclusions on top of these.
- A special-events increase must be requested within 12 months of the event, and only one increase can be made in any 12-month period. [1]
- Any loading, exclusion or special term applied to the original cover is applied to a special-events increase as well, so an increase does not reset your underwriting. [1]
- A life assured over the age of 55 is not eligible for special-events increases. [1]
- While cover is suspended no premium is payable and no claim is payable for anything that happens during the suspension. [1]
- The dependent child funeral benefit excludes pre-existing conditions. [2]
- Special conditions, exclusions and premium loadings may be applied to your policy at underwriting, and they are personal to you rather than to the product. [2]
- Converting part of the cover to a level-premium funeral benefit is available only after 10 years of cover and from age 65. [3]
- A product brochure is a summary. Where it differs from the policy document, the policy document prevails, so the schedule you are issued is the contract, not the marketing. [3]
- [1] AIA New Zealand, AIA Living Life Personal Cover Policy Wording, 10 October 2023 (1101 AL-LIFE version 5), read 8 Sep 2026.
- [2] Partners Life, Life Cover overview, Partners Life Journey Plan, PLJP_OVERVIEW_LIFE COVER_V03_1025, read 8 Sep 2026.
- [3] Asteron Life, Life Cover brochure, RP321 (09/24), read 8 Sep 2026.
News that affects this cover
- Four Of The Five Insurers You Can Buy From Directly Now Sell The Same Thing, And Call It The Same Name, Insurers, 9 September 2026. If you are buying cover directly rather than through an adviser, you are increasingly choosing between five versions of one product shape rather than assembling cover from parts.
- Australia bans genetic test results in life underwriting next month. New Zealand does not., Regulation, 8 September 2026. If you are considering a predictive genetic test in New Zealand, the result can be asked for and used by a life or health insurer assessing a future application.
- One owner will hold 640,000 lives, and the adviser panel gets shorter, Insurers, 8 September 2026. If you hold a Fidelity Life or Westpac-branded life policy, your cover, your premium and your policy wording are set by contract and do not change because the shares change hands.
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Explore related pages: Guides Mortgage Protection, Life Insurance, Income Protection, Health Insurance, Claims Support.