Loan Repayment Insurance
Loan repayment insurance enables you to borrow from Avanti with the confidence of knowing that the risks associated with maintaining the repayment program are minimised.Lumley Loan Repayment Insurance provides you with market leading benefits and features.
The policy is written in plain English and fully underwritten by a member of the Insurance Council of New Zealand.
Lumley Loan Repayment Insurance will repay the outstanding balance of the loan in the event of death, and will ensure ongoing loan repayment instalments following illness, accident, bankruptcy, redundancy or suspension from permanent employment.
In addition to this, you will also be covered for a lump sum death by accident benefit of $10,000 which will be paid directly to your estate.
Why you should have LRI
- Protects your credit rating
- Reduces the risk of repossession of vehicles used as security
- Protects you and your family from financial hardship when the unexpected happens
- Provides protection for a co-borrower
- Provides a $10,000 death by accident payout to your estate over and above the cover for your loan
- Should the unexpected happen, 95 per cent of our customers do not have the ability to repay the loan
Frequently asked questions
Loan repayment insurance- Does a person need to be employed to qualify for loan repayment insurance?
No, varying options are available. If they are a beneficiary or unemployed, they will generally qualify for Life cover only. However, if the insured is likely to return to permanent employment during the loan period then they should take the full option (includes redundancy).
- Can I claim more than once for illness or redundancy during the period of the policy?
Yes
- Can the policy be cancelled?
Yes, however, these should be referred to Avanti in the first instance.
- Is the loan repayment insurance still effective when a loan is more than the maximum policy limit of $50,000?
All loans above $50 000 should be referred to Avanti in the first instance, who will seek approval from Lumley.
- Can loan repayment insurance cover a trading business or limited liability company?
No, only the person named in the policy.
- In joint applications, can each applicant have a different option depending on their employment status or circumstances?
Yes, it is just a matter of selecting the appropriate option for them and applying the correct premium charge.
- Who are the benefits paid to?
All benefits are paid to the financier, apart from the $10,000 death by accident cover which is paid to the insured’s estate.
- What is the age range for this policy?
The applicant must be between the ages of 18 and 65. As soon as the applicant turns 65 years of age the policy expires. If you require cover for someone older than 65, please refer to Avanti first, who will seek approval from Lumley.