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National Australia Bank (NAB) today announced details of its Protected Loan package, combining home lending with insurance in one simple process. This package not only helps customers to buy their home but can also help customers to keep their home if their circumstances change and they can no longer make loan repayments.
Protected Loan makes it easier and simpler for customers to buy and protect their home at the same time, having one conversation with their banker which not only covers their debt needs, but also addresses their general and life insurance needs.
"Australians have a 1 in 3 chance of becoming disabled for more than three months before turning 65*," said Steve Tucker, CEO of MLC.
"Statistics also show that 60% of Australian families with dependents will run out of money within a year if the breadwinner dies**."
"Despite these facts, the majority of Australians have some level of home and contents insurance, but very few have income protection, total and permanent disability or life insurance."
"The reality is that unemployment, serious illness, an accident, or death can seriously impact a customer's finances, putting their loan, home and family at risk at a time when their finances are the last thing they want to be thinking about."
"We believe we have an obligation to help our customers have the right protection in place when they buy their home," said Andrew Thorburn, NAB's Executive General Manager for Retail Banking in Australia.
"Under-insurance is a significant problem in Australia today and, with MLC, we are well placed to address this issue with products that meet broader customer needs in a simple and efficient way."
"We have rolled out a detailed training program to our personal bankers during the past six months to ensure they are having the right conversations with their customers about how they can protect what is valuable to them."
Mr Thorburn said Protected Loan is focused on protecting a customer's assets and their repayments on their debt. The package has two key components:
· Securing loan repayments - National LoanCover is designed to help protect a customer's loan repayments if they become disabled, involuntarily unemployed or suffer a specified critical illness, up to a maximum of $5,000 per month, or in the case of death, pay the outstanding balance of the loan up to $400,000. This product can be issued on the spot with minimal paper work.
· Safeguarding the home and its valuables - NAB can arrange home and contents insurance which provides cover for a range of events that can occur at the home including fire, burglary and storm damage. These products can be issued on the spot with minimal paper work.
"In addition to National LoanCover and General Insurance, NAB's personal bankers can also refer a customer to a National Australia Financial Planner to address their broader financial situation and needs.
"Protected Loan is about making it easier for our customers to protect their lifestyle both now and into the future," said Mr Thorburn.
*Based on data from the Institute of Actuaries of Australia (2000). Interim report of the Disability Committee.
**IFSA Research - A Nation Exposed. Conducted for IFSA by Rice Walker Actuaries and TNS Australia.
For further media information, please contact:
Patrick Southam Stacey Mitchell
Corporate Affairs Manager, Retail Bank Corporate Affairs Manager, MLC
National Australia Bank Limited National Australia Bank Limited
T (02) 92371690 T (02) 9966 3035
M 0419 415 998 M 0400 305 446
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