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Loan Protection claim eligibility

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Here’s what’s changed

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Previously your policy provided cover that could help you pay off your loan if the unexpected happened. Now we’ll pay benefits directly to you if we pay a claim. What hasn’t changed is your premium and the events your policy protects you against.

What you’re covered for

Out of work

If you aren’t working because of an injury or illness or because you involuntarily lose your job we could pay up to 75% of your average monthly income for up to a year to help you get back on your feet.

Learn more

Life

If you pass away we could pay a cash benefit to your estate to help your loved ones.

Learn more

Critical illness

If you’re diagnosed with a critical illness we could pay a cash benefit directly to you to help with medical expenses and your recovery.

Learn more

What are your options?

Mother and daughter

  • If we don’t hear from you, your policy will continue
  • Contact us if you want to discuss your cover options on 13 3982 (8am to 8pm Sydney time, Monday to Friday)

Out of work

Your policy* now protects your income with out-of-work cover. This means that it could provide up to 75%** of your average monthly income for up to a year if you’re unable to work because you’re sick, have an accident or become involuntarily unemployed.

Before altering your policy you should compare your cover and price options. Your existing monthly premium has not changed as a result of closing your loan. This may also be cheaper than income protection insurance. If you are unsure you should always seek independent financial advice.

Important information:

*Cover only applicable if your policy shows the words “Loan Repayment Cover”. This option previously covered your loan repayments, but now helps protects your income.

**If you are eligible, your policy will pay a monthly amount equal to 75% of your average monthly income in the twelve months immediately prior to claim. The maximum monthly payment is 0.67% of the Loan Repayment Cover Cap Amount specified in your Policy Schedule if your policy used to be linked to a home loan, or 2% of the Loan Repayment Cover Cap Amount specified in your Policy Schedule if you policy used to be linked to a personal loan. Benefits will be paid for up to twelve months. You should read the Home Loan Protection Product Disclosure Statement or the Personal Loan Protection Product Disclosure Statement to see when you are or are not ‘involuntarily’ unemployed.

Life

Your policy* now protects your life with life cover. This means that it could pay a lump sum** to your estate if you pass away. It could also pay a lump sum directly to you if you’re diagnosed with less than 12 months to live.

Before altering your policy you should compare your cover and price options. Your existing monthly premium has not changed as a result of closing your loan. This may also be cheaper than other insurance options. If you are unsure you should always seek independent financial advice.

Important information:

*Cover only applicable if your policy shows the words “Loan Cover”. This option previously covered your loan balance, but now protects your life.

**If you are eligible, your policy will pay the amount shown on your policy schedule as your “maximum death and terminal illness benefit amount”.

Critical illness

Your policy* now protects you against defined medical traumas with critical illness cover. This means that it could pay a lump sum to you if you’re diagnosed with cancer, have a stroke or heart attack or if you undergo coronary artery bypass surgery***.

Before altering your policy you should compare your cover and price options. Your existing monthly premium has not changed as a result of closing your loan. This may also be cheaper than other insurance options. If you are unsure you should always seek independent financial advice.

Important information:

*Cover only applicable if your policy shows the words “Loan Cover”. This option previously covered part of your loan balance, but now helps protect you against defined medical traumas.

**If you hold a Home Loan Protection policy and are eligible, your policy will pay 10% of the amount shown on your policy schedule as your “maximum death and terminal illness benefit amount”.. If you hold a Personal Loan Protection policy and are eligible, your policy will pay the full amount shown on your policy schedule as your “maximum death and terminal illness benefit amount”.

***as defined in the Home Loan Protection Product Disclosure Statement and the Personal Loan Protection Product Disclosure Statement.

Important information:

This advice has been prepared without considering your objectives, financial situation or needs. Before acting on the advice, please consider its appropriateness to your circumstances. This information is provided by CMLA and where we refer to ‘we’ and ‘our’, we mean CMLA.

Loan Protection is issued by The Colonial Mutual Life Assurance Society Limited ABN 12 004 021 809 AFSL 235035 (CMLA) a wholly owned but non-guaranteed subsidiary of the Commonwealth Bank of Australia ABN 48 123 123 124. The Home Loan Protection Product Disclosure Statement (PDS) and the Personal Loan Protection Product Disclosure Statement are available online, from any Commonwealth Bank branch or by calling 13 3982 and should be considered in making any decision about Loan Protection. You can also download a Financial Services Guide (FSG).