Help & support
Loan Protection policies with a policy start date before 17 May 2010 have an additional feature called Automatic Continuation of Cover, which continues to protect you after your loan closes.
Your policy anniversary letter will confirm if your Loan Protection policy has this feature.
As your policy will continue after your loan closes, it’s important to consider if your policy is right for your personal circumstances and whether you already have other existing insurance cover, such as through your superannuation fund, for unemployment, terminal illness and death.
If you choose to cancel your cover and replace it with another policy, you may be required to go through underwriting, medical checks or be subject to pre-existing condition exclusions.
If you don’t do anything, your policy will continue and you will pay ongoing insurance premiums. Please take the time to read the information below to help you to decide whether to continue your policy.
If after reading the information you have any questions, or you would like to cancel your policy, you can:
Once your loan is closed, your Loan Protection policy automatically continues without any request for evidence of health. Your cover is now in the Automatic Continuation of Cover phase. This means that you will continue to be protected.
Previously your policy provided cover that could help you pay off your loan if the unexpected happened. Under Automatic Continuation of Cover when you make an eligible claim the benefits will be paid directly to you or your estate.
The amount you pay per month and the events your policy protects you against, have not changed.
The table below summarises the benefits and conditions of the Automatic Continuation of Cover feature.
Refer to the latest Home Loan Protection Product Disclosure Statement (PDS) or the latest Personal Loan Protection PDS and your Policy Schedule to check the benefits for which you are covered and if you are eligible to claim.
It is important to note that your benefits and conditions have been upgraded over time. You can find earlier versions of the PDS here. Should you make a claim, we will assess it against the original benefit or condition and the upgraded benefit or condition. If your claim is admitted, the claim paid will be based on the benefit or condition that is most advantageous to you (original or upgraded). If you think that an earlier benefit or condition is more advantageous to you then you can also claim under that term.
Examples of how benefits are calculated. Please check your Policy Schedule to confirm the benefits that apply to you.
For a policy that covered a Personal Loan:
James took out a Personal Loan for $35,000 on 15 March 2009 and chose to take out Loan Protection to help cover the outstanding loan amount or monthly repayments in the event of an eligible claim. After paying off his Personal Loan, his Loan Protection policy entered the Automatic Continuation of Cover phase. James maintained the same level of cover for the duration of the policy.
During the Automatic Continuation of Cover phase of the policy, the following benefits may be payable.
For a policy that covered a Home Loan:
Scott and Sally took out a Home Loan for $300,000 on 10 June 2008 and chose to take out Loan Protection to help cover the outstanding loan amount or monthly repayments in the event of an eligible claim. After paying off their Home Loan, the Loan Protection policy entered the Automatic Continuation of Cover phase. Both Scott and Sally maintained the same level of cover for the duration of the policy.
During the Automatic Continuation of Cover phase of the policy, the following benefits may be payable for both Scott and Sally.
Loan Repayment Cover
If you are unable to work due to disability or involuntary unemployment, your policy could pay you a monthly amount for up to 12 months.
To make a successful claim, you must be:
Loan Cover
To make a successful claim, you:
You need to meet the above criteria before claiming. If you are unsure or you need help with understanding the above criteria please call us on 13 39 82 between 9am-5pm, Mon - Fri (AEST/AEDT).
After your loan is closed we will send you a notification to let you know that this feature of your policy has commenced. You will also continue to receive a policy anniversary letter every year.
When the Automatic Continuation of Cover phase commences, you can:
Your existing monthly premium has not changed as a result of closing your loan.
You should consider if your policy is right for your personal circumstances, including whether this cover complements any other existing insurance cover.
If you decide that you no longer need this cover now that your loan is closed it is important to remember that:
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. Loan Protection is issued by AIA Australia Limited ABN 79 004 837 861, AFSL 230043 (AIA Australia). AIA Australia is not part of the Commonwealth Bank of Australia (CBA) Group of companies. CBA and its subsidiaries do not guarantee the obligations or performance of AIA Australia or the products it offers.