Fidelity Life makes mortgage cover enhancements

Fidelity Life has introduced significant enhancements to its Monthly mortgage repayment cover and Mortgage Protection Cover, in direct response to feedback from advisers.

Sunday, June 23rd 2024, 2:42PM

Fidelity is lifting the offsets thresholds for these covers from $5,000 to $7,500, providing greater certainty at claim time for customers with high incomes or large mortgages.

Customers now also have the option to base their cover on 115% of their rent payments, alongside the existing measures of gross income or mortgage repayments.

Chief Commercial Officer Bronwyn Kirwan says the enhancements come in response to advisers’ feedback and are the latest example of Fidelity Life’s push to make life easier for advisers.

“We’re constantly reviewing our products to ensure they meet New Zealanders’ evolving needs, and our north star is the feedback we receive from advisers.

“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. By providing more options, we aim to help more New Zealanders get the cover that works for them”.

Fidelity Life has also simplified how offsets are applied at claim time for these covers. Previously offsets were calculated using multiple factors and differed depending on a customers’ mortgage status. Now, when offsets begin to apply, they’ll simply be tied to other income regardless of whether or not they have a mortgage.

“We have streamlined the underwriting process for these covers whereby we no longer require confirmation, as part of the customer's application, as to whether rental income is received or not. We’ve also just launched a new and improved E-App that’s streamlining the underwriting process for all applications” Kirwan says.

The enhancements are available now to new and existing Fidelity Life customers.

Tags: Fidelity Life