Redundancy/Bankruptcy cover provides extra protection in case you’re made involuntarily redundant, or if you are self-employed and made bankrupt.
It’s linked to your Income Cover and can pay out the same monthly benefit, 30 days after you’re made redundant or bankrupt. And it can keep paying out for up to six months. You need to have been working for at least 25 hours a week at the time of ceasing work.
Most people use this to pay for the mortgage or cover the rent. Some choose to take a stress free family holiday, but how you spend it is up to you.
How Redundancy/Bankruptcy Cover fits with your other cover
To get Redundancy/Bankruptcy Cover you will also need:
Westpac Term Cover with Income Cover,
Be a New Zealand permanent resident, aged 18-59 years.
The first 30 days of any claim are not covered. No benefit will be paid if you were working less than 25 hours per week when you stopped work. The policy won’t cover:
any redundancy or bankruptcy that you knew about at the start of the policy
any redundancy or bankruptcy that occurs, or you become aware of, or you ought to have been aware of in the first six months of the policy.
For redundancy specifically, the policy won’t pay out if:
you are not paid by salary or wages
you are self-employed, on a fixed term contract or in seasonal, temporary or casual work
you are a director of the business or employed by a direct member of your family
you have not satisfied us that you are actively seeking full time employment.
For bankruptcy specifically, the policy won't pay out if:
you are not self-employed
you voluntarily declared bankruptcy
you knew at the start of the policy that it was likely or possible that bankruptcy notice or proceedings would be issued against you.
Read your policy
You’ll find more details about your Redundancy/Bankruptcy cover in your policy document including full details on exclusions and limits on cover. Do read it carefully, so you fully understand your cover.
Westpac Term Cover is underwritten by Westpac Life-NZ-Limited (“Westpac Life”), which is a wholly owned subsidiary of Westpac Financial Services Group-NZ-Limited, which is a wholly owned subsidiary of Westpac Banking Corporation ABN 33 007 457 141, incorporated in Australia. Neither Westpac Banking Corporation nor Westpac New Zealand Limited (“Westpac”) guarantees the obligations of, or any products issued by Westpac Life. Westpac will receive commission payments as a result of the arrangement of Westpac Life insurance policies. For Westpac Life’s solvency margin please click here. For Westpac Life's financial strength rating please click here.
Terms, conditions, exclusions and limits apply to Westpac Term Cover. A policy document may be downloaded here as a PDF or obtained from any Westpac branch free of charge. The availability of any insurance cover is subject to the acceptance and approval of a completed application.
Any payment is subject to your claim being accepted.