What happens to my Loan Protection policy when I pay off my loan?
Last updated 29 October 2018
Loan Protection policies that started before 17 May 2010 include a feature that converts the policy into life, critical illness and out-of-work cover after the loan had been paid off. If your policy started before this date and you have Loan Repayment Cover it means your cover continues and if you were to become disabled or involuntarily unemployed we could pay a monthly cash benefit for up to 12 months. Also if you have Loan Cover and you suffer a medical trauma*, terminal illness or pass away, you or your estate would be able to make a claim equal to your original loan amount.
*Trauma cover conditions are:
- Coronary artery disease requiring bypass surgery
- Heart attack
Trauma conditions have specific meanings and a benefit is only payable if you meet the precise meaning of the definition set out in the Loan Protection Medical Definitions Reference Guide.
If your policy started after 17 May 2010, your Loan Protection policy will be automatically closed when you pay off your loan.
If you want to cancel your policy you can call us on 13 3982 between 8am - 8pm, Monday - Friday (Sydney/Melbourne time).
Important information: This advice has been prepared without considering your objectives, financial situations or needs. Before acting on the advice, please consider its appropriateness to your circumstances.
Loan Protection is issued by The Colonial Mutual Life Assurance Society Limited ABN 12 004 021 809 AFSL 235035 (CMLA) and is a wholly owned but non-guaranteed subsidiary of the Commonwealth Bank of Australia ABN 48 123 123 124. A Product Disclosure Statement (PDS) for Loan Protection is 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 our Financial Services Guide (FSG).