Personal loan repayment insurance

If you have a personal loan with Westpac, Westpac Loan Cover could remove some of the worry for you – helping you to meet your loan repayments in the event of an injury or illness (where you can't work), involuntary redundancy and bankruptcy or death.

It provides:

  • peace of mind, should the unexpected happen and you lose your income, Westpac Loan Cover can help reduce some of the financial burden on you and your family from your personal loan repayments;
  • a simple one-off payment to meet the cost of cover which can be added to your personal loan. If exercising this option, additional interest will be charged to your loan;
  • flexibility to apply for Westpac Loan Cover when you take out or restructure your personal loan;
  • the ability to cancel your policy at any time. If this occurs a rebate of premium may be paid to you.
What does it cover?

If you die

If you die it may pay the outstanding amount of your personal loans up to a maximum of $80,000.

If you become disabled

If an injury or illness prevents you from working for 7 consecutive days or more, your personal loan repayments may be covered, up to a maximum of $1,500 per month* until your loan is repaid or you return to work.

If you are made redundant

If you are made involuntarily redundant your personal loan repayments may, after 30 days of unemployment, be covered up to a maximum of $1,500 per month* for up to 4 months.

If you are self-employed and declared bankrupt

If you are self-employed and are adjudicated bankrupt as a result of creditors applying to a New Zealand court, your personal loan repayments may be covered up to a maximum of $1,500 per month for up to 4 months while you remain bankrupt.

*If you have more than one Westpac Personal Loan covered by Westpac Loan Cover, the instalments of those loans will be aggregated and the maximum amount of $1,500 per month will apply.

Note: Westpac Loan Cover provides automatic acceptance (meaning we do not assess your health and lifestyle status) and any injury, sickness or disease which existed at the policy commencement date (or makes itself known within 28 days of the commencement date) will not be covered including any medical condition(s) you were unaware of.

Who can be covered?

To be eligible, you must be aged between 18 and 59 years (inclusive) when you apply (and the term of your loan must end by the time you turn 61).

 

 

 

What is not covered?

Westpac Loan Cover will not pay out in certain circumstances. Please see the lists below:

Life

Death resulting from:

  • suicide within 13 months of the commencement date, or intentionally self-inflicted injury;
  • any injury, sickness or disease which existed, whether diagnosed or not, at the commencement date;
  • war or act of war;
  • AIDS or AIDS related conditions.

Total Disability

Disability resulting from:

  • any injury, sickness or disease which existed, whether or not diagnosed, at the commencement date;
  • any sickness or disease which first made itself known within 28 days after the commencement date;
  • intentionally self-inflicted injury;
  • war or act of war;
  • AIDS or AIDS related condition;
  • taking or use of alcohol, poison or drugs other than a drug advised by your doctor;
  • pregnancy, childbirth and abortion.

Redundancy

No benefit will be paid:

  • for the first 30 days of redundancy;
  • for voluntary redundancy, resignation or dismissal;
  • if you knew or ought to have known, within 60 days from the commencement date, of possible redundancy;
  • if you are not paid by salary or wages;
  • if you are self-employed, or in seasonal or contract work, or in temporary or casual work;
  • if you are a director with control over your employment, or employed by a direct family member.

Bankruptcy

No benefit will be paid:

  • for the first 30 days of bankruptcy;
  • if you knew at the commencement date that bankruptcy was possible, had received a bankruptcy notice, or committed an act of bankruptcy;
  • if you are not self-employed;
  • for voluntary bankruptcy.

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

How does it work?

Westpac Loan Cover is optional insurance that is available when you take out a personal loan.  It offers the option of a single premium that can be added to your personal loan balance at the time you apply.  If you exercise this option additional interest will be charged to your loan.

Apply now

You can apply for Westpac Loan Cover when you take out a Personal  Loan.

To apply for Westpac Loan Cover contact any Westpac branch or call 0800 177 277 (Monday to Friday, 8.00am to 8.30pm; Saturday, 9am to 3pm).

Westpac Loan Cover 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.