Payment Protect for Borrowers

main computerThe unexpected can happen at any time, so make sure you and your family are prepared with Payment Protect.

Introducing Payment Protect for Borrowers

Introducing Payment Protect for Borrowers

The unexpected can happen at any time, so make sure you and your family are prepared with Payment Protect.

The unexpected can happen at any time, so make sure you and your family are prepared with Payment Protect.

How much does Payment Protect cost?

Click here to see full pricing.

If you choose to add Payment Protect to your loan, a Payment Protect fee will be added to your loan amount. The fee is calculated as a percentage of your loan, and then your monthly repayments will be based on your loan amount plus the Payment Protect fee. For example, if you take out a $10,000 loan for 36 months with Complete cover, the Payment Protect fee will be $575 (Note: all Payment Protect fees are rounded to the nearest $25).

If you need to make a claim, and that claim is successful, any waived repayments will be covered by the Payment Protect fee you have paid upfront.

 
Event
Level
Waived Repayments
Stand-down period
 
Death You pass away Partial & Complete Your remaining loan repayments No exclusion, immediate cover
Terminal illness You suffer an illness or accidentally injury that will lead to your death within 12 months Partial & Complete Your remaining loan repayments. Exclusions apply for all levels of cover – see Section 7 for a list of Exclusions
Disability You suffer an illness or accidentally injury that makes you unable to work. Complete only Until you're able to work again (up to 24 months) Excludes illness that starts in the first 30 days. All others have a 14 day stand down.
Involuntary Redundancy You are unemployed through involuntary redundancy. Complete only While you are out of work (up to 5 weeks) Excludes unemployments due to redundancy that occurs within the first 30 days.

Frequently Asked Questions

Is Payment Protect an Insurance Product?

No. This is a repayment waiver and not an insurance product. The agreement is only to waive the right to collect repayments, and does not provide you with additional funds. However the terms of the policy have some similarities to loan repayment insurance.

What does Payment Protect not cover me for?

As comprehensive as Payment Protect cover is, there are certain things you will not be covered for. It would be advisable to review the full list of exclusions under clause 7 in the Payment Protect Terms and Conditions. Please read the full terms and conditions – click here.

Does Payment Protect cover my spouse or partner?

We have two options for you. You can take the Payment Protect for yourself if you are the only person named on the loan. If you have a co-Borrower on your loan, you are each able to take out Payment Protect so you are both protected. If there is a co-borrower on the loan it is not an option for only one of you to take out Payment Protect. Both you and the co-borrower must take out Payment Protect.

Am I eligible to add Payment Protect?

To be able to apply for Payment Protect, you have to be over 18 (but under 65); a citizen or permanent resident in New Zealand; and for Complete cover either you need to be Permanently employed for at least 20 hours a week for at least three months before becoming unemployed due to redundancy; or self-employed for at least 20 hours per week and have had your business for at least two years.

If I already have income protection insurance, do I still need Payment Protect?

Income Protection benefits and policy terms differ by Insurer and we are unable to give you advice on this. However, Payment Protect covers you for your Harmoney loan in case of an unexpected life event. Payment Protect does not cover other loans or credit you may have with other companies. Please read the full terms and conditions – click here

What if I pay off my loan early?

If you repay your loan early, including taking out a Top Up, you will be rebated a proportion of your Payment Protect Fee. The calculation of this rebate is specified by the Credit Contract and Consumer Finance Act.

Who manages the claims process?

The claims process is managed in house by Harmoney’s claims specialists. This ensures that your experience is consistent and that the process is compliant with the Payment Protect Terms and the law.

What if I Top Up my loan and I already have Payment Protect on the first loan?

Because we re-write loans when you top up, we would pay back the first loan in its entirety and rebate you for the Payment Protect unused portion.   We would then write you a new loan and you are then able to take Payment Protect on your new loan for the new term and payment levels. NB: You cannot top up if you are in a waiver period or have a Payment Protect claim in progress

Can I make a Payment Protect claim if I am in arrears?

No. You must not have any Payments that are in arrears when you make a claim. Please read the full terms and conditions – click here

What happens if I make a Repayment that later qualifies to be waived?

If the Repayment is made because an automatic payment or direct debit instruction is not cancelled or adjusted in time, the Repayment will not be refunded to you. However it will not be included when calculating the maximum number of repayments that you do not have to make. e.g. If you made a successful redundancy claim you would still be eligible for 5 months of repayment waivers.

More questions? Click here