Mortgage Protection vs Income Protection
Mortgage protection covers your loan repayments if you can’t work due to illness, injury, or redundancy. For most NZ households, the mortgage is the biggest monthly outgoing, and the one that, if it stops being paid, ends the household.
How the cover actually works.
A monthly benefit that covers your mortgage repayments, typically capped at your actual repayment amount or a set percentage of income, whichever your policy specifies
Triggered by illness or injury, and on some policies by involuntary redundancy too, which can matter most during an economic downturn or industry-wide restructuring
A wait period and benefit period chosen at the start, using the same structure as income protection, so the two policies can usually be aligned together
Sits alongside life and TPD cover so the mortgage keeps being paid and the family home is protected even if the household’s income disappears entirely
This page is for you if…
First-home buyers and recent homeowners with a fresh mortgage
Single-income or one-and-a-half-income households
Self-employed homeowners with no employer redundancy cover
Anyone whose mortgage is more than 30% of household income
Two ways to get mortgage protection sorted.
Going it alone
You compare policy wording and exclusions yourself, insurer by insurer.
No one flags it when your circumstances change and your cover no longer fits.
If a claim is ever declined, you deal with the insurer directly.
The cheapest premium today isn't checked against what it actually covers.
With a Smiths adviser
We compare mortgage protection across the providers we work with, in plain English.
We review your cover again as your circumstances change, not just once at the start.
If you ever need to claim, we deal with the insurer on your behalf.
You get one recommendation based on your situation, not a single insurer's product.
Talk to an adviser about this.
Thirty minutes with a licensed Smiths adviser, no obligation. Leave your details and we'll be in touch, usually within one working day.
Full audit of your existing cover, fund, and policy wordings
Comparison across the providers we work with
A clear written recommendation in plain English
Implementation paperwork handled by us, not you
Why this is easier with an adviser.
Decide whether you need standalone mortgage protection or just well-sized income protection.
Compare redundancy cover availability and definitions across the insurers on our panel.
Make the cover portable, so it follows you between banks and refinances.
Size to the actual mortgage plus rates, insurance, and a small living cushion.
The providers we work with for this cover.
Mortgage protection
Our advice covers the providers shown here, not every insurer or KiwiSaver provider in New Zealand. The panel can change, and we'll always confirm it when we give you advice.
Common questions about mortgage protection.
Often, yes, but the lowest price doesn’t always mean the better-suited cover. Lender cover is built around the bank’s interest, not yours. Stand-alone cover follows you between banks.
Sometimes. A well-sized income protection plan can cover the mortgage and more. But income protection doesn’t cover redundancy, and the offset clauses are different.
Some mortgage protection policies include an optional redundancy benefit, others don't. We check what's actually included before you rely on it.
No. Mortgage protection is usually sized to the mortgage repayment specifically, while income protection responds to a wider share of your income. Some households hold both.
Other services in this area.
Talk to the team.
Book a free review with Craig, Guy or Henry. No fees, and we're there if you ever need to claim.