Advanced Personal Loan Insurance

Advanced Personal Loan Insurance could help out with loan repayments if redundancy, illness, an accident, or death affects your income.

You can only opt-in for this insurance when you apply for your personal loan.

Read the full Advanced Personal Loan insurance policy pdf 210kb

Helping out when the unexpected happens

Illness or accident

If illness or an accident stops you from working 20 hours or more per week for 14 days in a row, the insurance will pay your loan instalments until the end of loan term, or you’re fully recovered, or you return to work, or $50,000 is paid — whichever comes first.

Redundancy

If you’re made redundant, and still unemployed after 14 days, the insurance will pay your loan instalments until the loan term ends, or the maximum period of nine months is reached, or you return to work, or $50,000 is paid — whichever comes first.

Permanent disability

If you become permanently disabled and aren’t likely to ever work again, the insurance will pay the total loan balance up to a maximum of $50,000.

Death

If you die, the insurance will pay the total loan balance up to a maximum of $50,000.

Full cover until you’re 65

You must be under 65 to be eligible to apply for cover. However, if you’ve applied for the cover before age 65, cover is limited to death only if you are 65 or older.  Cover will cease once you reach 70.

WORKING LESS THAN 20 HOURS

Cover is limited to death if you work for one employer for less than 20 hours per week at the time of the claim event.

PRE-EXISTING CONDITIONS

Full cover for any pre-existing conditions applies once the policy has been in place for six months.

Premiums linked to your balance

Premiums are calculated at 47 cents per $100 of the current total loan balance at the time your monthly statement is produced. Your premium reduces as your loan balance decreases. Insurance is not available on joint Advanced Personal Loans.

30-day free look period

If you cancel your policy within 30 days of taking it, you’ll get a full refund of the premiums you’ve paid.

Financial Strength Rating

Advanced Personal Loan Insurance is underwritten by Cigna Life Insurance New Zealand Limited (Cigna), which has an A (Excellent) financial strength rating given by A.M. Best Company Inc

The rating scale is: A++, A+ Superior | A, A- Excellent | B++, B+ Good | B, B- Fair | C++, C+Marginal | C, C- Weak | D Poor | E Under Regulatory Supervision | F In Liquidation | S Suspended

For more information read the A.M. Best Company Guide to best's financial strength ratings PDF 91KB.