Major bank reveals new feature for struggling borrowers
One major bank has revealed its plans to launch a "compassionate" feature into its suite of mortgage products.
Home loan customers of CBA can expect to receive a free insurance feature, which the bank has called “Home Loan Compassionate Care.”
This new and “complimentary” feature provides base level coverage of up to one year for mortgage repayments, in the event that the borrower becomes terminally ill or passes away. The same allowance extends to dependents and the borrower’s spouse.
At this stage, the feature is available to owner occupiers.
Borrowers with CBA can expect this feature to be active from early next year.
“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,” said CBA group executive of retail banking services, Angus Sullivan.
“Customers will also be able to purchase additional cover, at their discretion, based on their needs from a range of new products and features that will soon be launched,” he said.
It seems this new inclusion will give way to a range of new products, launched with similar intentions for borrowers.
“This 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,” Mr Sullivan said.
Under Australian law, insurance providers are obligated to make sure that the design of the products are consistent with the needs and financial situation of their target market.