Claim Story: Mortgage Protection Insurance

In 2005, Rebecca Smith* and her partner were excitedly building their dream property on the out skirts of Christchurch.

With a substantial mortgage and limited savings, Rebecca and her partner never thought that they would be in a position where one of them would not be able to contribute to the mortgage due to illness.

As the house was nearly complete, Rebecca and her partner decided that it would be a good idea to take out a mortgage protection policy. The plan has a range of cover options, and allowed the couple to insure themselves if they were to die, or if they were unable to work due to sickness or injury.

Less than six months later, Rebecca was suffering from crippling back pain after hurting her back while lifting a bale of hay.

Rebecca needed to have an operation to fix a disc that resulted in two months off work so she could recuperate fully from the operation. After the four-week wait, Rebecca started receiving her Mortgage Protector Income Protection benefit, allowing her the time to recover from her operation without worrying about meeting the mortgage repayments.

Rebecca is now back at work, and feeling much better. Without Mortgage Protector Insurance Rebecca and her partner would have struggled to afford the repayments on their dream home.

* name changed for privacy reasons.

This information is general in nature and should not be used as a substitute for financial advice. Always consult your financial adviser before making any financial decisions.