New Zealand insurance provider Fidelity Life has improved its monthly mortgage repayment cover and mortgage protection cover.
Effective June 20, Fidelity lifted the offsets thresholds for the covers to $7,500 from $5,000, allowing customers with high incomes or large mortgages to have greater certainty at claim time.
In a media release, the company also announced an option for customers to base their cover on 115% of their rent payments, along with current measures of gross income or mortgage repayments.
Chief commercial officer Bronwyn Kirwan (pictured above) said in a statement that the enhancements are in response to advisers’ feedback.
“These enhancements deliver more support and security for customers, whether that’s through keeping more money in their pockets before offsets start to apply, or offering greater support for renters,” Kirwan said.
“By providing more options, we aim to help more New Zealanders get the cover that works for them.”
In the company’s previous measures, offsets were calculated using multiple factors and differed depending on the mortgage status of customers. Now, Fidelity has simplified how offsets are applied at claim time.
When offsets begin to apply, they will be tied to the other income regardless of whether or not the customers have a mortgage.
As part of the application process, Fidelity no longer requires confirmation from customers on whether or not rental income is received, streamlining the underwriting process for the covers.
The company has also launched an app designed to improve the underwriting process for all types of application.
