The Commonwealth Bank of Australia (CBA) will be launching the new insurance cover in early 2020, which will provide customers with up to 12 months of mortgage repayments in the event of terminal illness or death of the borrower, spouse and/or any dependants, it indicated.
According to CBA’s group executive of retail banking services, Angus Sullivan, all of the bank’s new and existing customers will receive Home Loan Compassionate Care.
“At Commonwealth Bank, we understand that a home loan is one of the biggest financial commitments a customer can make,” he said.
“Paying off a mortgage is a long-term commitment, and when a family goes through the hardship of terminal illness or the loss of a loved one, they should not have to worry about their family home.”
Mr Sullivan said customers will also be able to purchase additional cover at their discretion, which comes as part of a new range of insurance propositions the bank is considering.
The range of products “will reflect improvements we are making to our design and sales processes, in line with recommendations from ASIC and the industry, to help improve customer outcomes”, the executive said.
Grace Ormsby is a journalist for Momentum Media's Nest Egg.
Before moving into the finance realm, Grace worked on Nest Egg's sister site Lawyers Weekly, and was previously a staff reporter at the NSW Business Chamber.
She holds a Bachelor of Communication (Journalism), a Bachelor of Laws (Hons) and a Diploma of Legal Practice from the University of Newcastle.