The Commonwealth Bank has launched these protections following a study produced by the bank, which showed the financial stress Australians would face if a loved one passed away.
Angus Sullivan, group executive, retail banking, said this is a way for the bank to support its members during a difficult time.
“If something were to happen, the last thing you should have to worry about is your home loan,” Mr Sullivan said.
CBA’s research also revealed that over half of Australians have not had a conversation with their spouse or dependants about how they would meet ongoing home loan repayments if something were to happen.
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 home owners 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.
“We know that mortgage repayments are the single biggest financial commitment for Australian home owners, so when the unthinkable happens we’ll support our customers by making their home loan repayments for around 12 months at no cost,” Mr Sullivan concluded.
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