Advanced Personal Loan Insurance
Advanced Personal Loan Insurance could help out with loan repayments if illness, an accident, bankruptcy, redundancy, 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 25 hours or more per week for 30 days in a row, the insurance will pay your loan instalments until the end of loan term, you're fully recovered, you return to work or $45,000 is paid — whichever comes first.
If you’re made redundant and you're still unemployed after 30 days, the insurance will pay your loan instalments until the loan term ends, the maximum period of six months is reached, you return to work or $25,000 is paid — whichever comes first.
If you are self-employed and declared involuntarily bankrupt, the insurance will make a one-off payment of 30% of the total loan balance up to a maximum of $10,000.
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 $45,000.
If you die, the insurance will pay the total loan balance up to a maximum of $45,000.
Full cover until you're 65
Full cover normally applies until you are 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.
Full cover if working more than 25 hours
Cover is limited to death if you work for one employer for less than 25 hours per week at the time of the claim event.
Full cover for any pre-existing conditions applies once the policy has been in place for 24 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.
This is only a summary of Advanced Personal Loan Insurance. Please read the Advanced Personal Loan Insurance policy PDF 163KB wording for full details of the definitions, benefit payments and exclusions.
Advanced Personal Loan Insurance is underwritten by Cigna Life Insurance New Zealand Limited (Cigna) and is not an obligation of Bank of New Zealand. Cigna will be responsible for all claims and other matters relating to this policy. BNZ and its related companies do not guarantee the obligations of Cigna and will not be liable if Cigna refuses a claim. BNZ arranges Advanced Personal Loan Insurance as distributor for Cigna and BNZ receives a commission on any policies arranged. Cover is subject to the terms, conditions and exclusions contained in the policy document. Claims will not be paid if exclusions set out in the relevant policy document apply. It is important that you check to see if any of these exclusions apply.
Not available to students/apprentices as part of the YouMoney Tertiary Advanced Personal Loan Product.
Insurance only available to principal owner. Not available on joint account loan.
The information and recommendations are provided for general purposes only. To the extent that any such information or recommendation constitutes financial advice, they do not take into account any person’s particular financial circumstances or goals. We recommend that you seek advice specific to your circumstances from your financial adviser.