CBA launches new home loan protection
The Commonwealth Bank together with AIA has launched a free insurance protection which pays the mortgage repayments of its customers for around 12 months.
Branded as Home Loan Compassionate Care, the complimentary insurance will only be available to owner-occupiers, if their spouse or dependent passes away or is diagnosed with a terminal illness.
“We know that mortgage repayments are the single biggest financial commitment for Australian homeowners, so when the unthinkable happens we’ll support our customers by making their home loan repayments for around 12 months at no cost,” CBA group executive of retail banking services Angus Sullivan said.
According to Sullivan, the bank also engaged with its own employees who have gone through similar, difficult experiences “to ensure the end-to-end claims process is as easy and stress-free as possible, and a dedicated team has undergone specialised training to handle these sensitive matters”.
The initiative was done in partnership with AIA – CBA had offloaded its insurance arm to the business in 2017.
The announcement follows new research from CBA which reveals a third of Australians would only be able to cover their home loan repayments for up to six months if they, their spouse or dependant passed away or was diagnosed with a terminal illness.
The research also uncovered that nearly half (45 per cent) of respondents would need financial assistance to cover mortgage repayments, with that number increasing to 55 per cent if homeowners have children under the age of 18, and was highest among those aged under 30 (67 per cent).
Of those who said they would need financial assistance, two fifths said they would look to family or friends when asked where they would turn for support to cover their ongoing mortgage repayments.
The research also showed that while women were more likely to turn to their bank to discuss what options are available to them, men tend to rely on insurance or other banks or financiers for assistance.