Home loan repayment insurance

Managing home loan payments is a big deal for most of us, so make sure you’ve got back up. Flexicover could help to make repayments on your Westpac home loan when you can’t – making monthly payments if you're unable to work due to total disability, redundancy or bankruptcy. It could make a lump sum payment to repay your Westpac home loan if you die, or are diagnosed as terminally ill.

It's for you if:

  • you have a Westpac home loan;
  • you don't have life insurance and you only want cover for your home loan;
  • you don't want your family to worry about home loan repayments if you die.
What does it cover?

If you die, or are terminally ill and likely to die within 12 months

The outstanding amount of your home loan could be repaid.

If you are totally disabled

Your home loan repayments may be covered if you are totally disabled after your Flexicover start date and are unable to continue your normal business, occupation or work.

  • We can start making your Westpac home loan repayments 42 days after you become totally disabled;
  • We can pay your Westpac home loan repayments for up to 30 months;
  • If after 30 months you are considered permanently unable to perform three or more of the daily living activities as defined in the policy, we could pay the remainder of your home loan balance as a lump sum;
  • We can pay your Westpac home loan repayments regardless of other income sources you may have while your claim is being paid (such as ACC or sickness benefit).

If you are made redundant

Your home loan repayments may be covered in the event of involuntary redundancy (after your Flexicover has started):

  • We could start making your Westpac home loan repayments after the latter of 42 days after you have been made redundant, or after the period of unemployment covered by any redundancy payout;
  • We can pay your Westpac home loan repayments for up to six months.

If you are made bankrupt

If you have been declared bankrupt as a result of creditors applying to a New Zealand court, your home loan repayments may be covered.

  • There's no stand-down period if you are made bankrupt after the start of your Flexicover policy;
  • We can pay the bankruptcy benefit for six months.

 

Who can be covered?

You and your partner can both be covered

If you have a joint Westpac home loan with your partner, you can both apply for Flexicover. This means:

  • Discounts are available if you both apply at the same time;
  • If you both die (or are totally disabled) at the same time, Flexicover will pay out twice.

If six months after the date we accept your application the loan has not been drawn down we will cancel your cover for that loan.  If you still require cover for this loan after this time you will need to apply for cover again.

What is not covered?

Flexicover will not pay out in certain circumstances.  Please see the lists below:

Death

  • No benefit will be paid for death arising from suicide within the first 13 months of the commencement date.
  • Where death arises from suicide after 13 months, the benefit paid will exclude any drawings (and associated interest) within 30 days preceding death.

Total Disability

No benefit will be paid:

  • for the first 42 days of total disability;
  • if you are able to undertake any type of work that would be suitable through your knowledge, experience or with training;
  • for disability arising from:
      • intentional self-inflicted injury;
      • war or act of war, riot or civil commotion;
      • taking or use of alcohol or poison or drugs (except as advised by your doctor);
  • for pregnancy, childbirth and abortion.

Redundancy

No benefit will be paid:

  • for the first 42 days of redundancy or the period covered by redundancy pay, whichever is the longer;
  • for any redundancy that occurs, or that you become aware of, in the first 60 days from the date of commencement or reinstatement or increase (in relation to the amount of the increase) of the policy;
  • if you are not paid by salary or wages;
  • if you are self-employed, in seasonal or contract work, or in temporary or casual work;
  • if you are a director where you have control over your employment, or employed by a direct member of the family.

Bankruptcy

No benefit will be paid for:

  • voluntary bankruptcy;
  • bankruptcy resulting from court proceeding that had already started at the commencement date.

 

Full details of exclusions and limits can be found in the policy document which may be downloaded here.

 

 

How does it work?

You and your partner can both be covered

If you have a joint Westpac home loan with your partner, you can both apply for Flexicover. This means:

  • Discounts are available if you both apply at the same time;
  • If you both die (or are totally disabled) at the same time, Flexicover will pay out twice.

If six months after the date we accept your application the loan has not been drawn down we will cancel your cover for that loan.  If you still require cover for this loan after this time you will need to apply for cover again.

Only pay for the cover you need

Cover and premiums adjust automatically with your loan balance - not the loan limit - so you never pay more than you need to.

Total disability benefit paid out monthly

The disability benefit payment under Flexicover isn't reduced by any other income sources such as ACC payments, sickness benefit or other insurance policies.

Flexible options to suit your needs

  • You can choose from fortnightly or monthly premiums to suit your pay days;
  • You can have up to eight loans on one Flexicover policy.
  • You can set up Flexicover Home Loan Insurance when you apply for your Westpac home loan, or any time after you start making repayments.

 

Apply Now

To apply for Flexicover contact any Westpac branch or call 0800 177 277 (Monday to Friday, 8am to 8.30pm; Saturday, 9am to 3pm).

Flexicover is optional.  If you're unsure whether this cover is right for you, give us a call on 0800 177 277.

30-day free look

You’re entitled to a free look period of 30 days from the commencement date.

If you decide the cover is not for you during the free look period, please advise Westpac Life in writing (PO Box 27031, Wellington) and we’ll refund any premiums you’ve paid.