NAB Mortgage Protect

In the event of: you being continuously disabled for more than 30 days due to injury or illness.

You’ll be considered to be disabled if you’re unable to work and carry out all the normal duties of your usual occupation.

If you’re unemployed or not gainfully employed for at least 15 hours per week on a continuous basis for six months or more immediately prior to the date you become injured or ill, you’ll be assessed as disabled only if you meet the activities of daily living definition or if you have severe cognitive impairment (see further detail in the ‘Let’s Get Your Sorted’ section below).

Payment: We’ll pay a monthly benefit (up to $10,000 subject to loan type) to help cover your repayments for up to 24 months (only 6 months while you’re overseas) or until you are no longer disabled (whichever occurs first). Benefits payable are calculated differently for different types of home loans:

• If you've been making principal and interest repayments under your loan, you’ll receive a monthly benefit to cover repayments (up to $10,000 a month).
• If you've been making interest-only repayments under your loan or if you have a line of credit, you’ll receive a monthly benefit of 0.75% of your life cover (up to $7,500 a month).

Example of how it works:

If you’re disabled and you have a principal and interest loan with a monthly loan repayment of $4,000, then we’ll pay $4,000 a month to your loan account.

If you’re disabled and you've been making interest only repayments under your loan or if you have a line of credit, we’ll pay a monthly benefit equal to 0.75% of your life benefit e.g. If your life benefit is $500,000, we’ll pay $3,750 a month to your loan account.

What’s not covered:

• Pre-existing conditions (see explanation in the ‘Let’s Get You Sorted’ section below)
• Any sickness, disease or symptoms contracted within the first 30 days of the policy start date, or the effective date of a loan increase (for the increased portion of the loan)
• A period of disablement that is less than 30 days
• Intentional self-inflicted injury or illness
• Engaging in professional racing of any kind except foot racing
• Being under the influence of drugs or alcohol
• Involvement in criminal activity
• War or warlike operations.

Limitations to the number of claims that I can make:

You can make as many claims as you need during the life of your policy. However, if you’re disabled because of more than one disability condition during a 24 month period, we’ll pay only one disablement benefit for that period, and if you suffer a recurrence of the same or related sickness or injury within 6 months of a previous period of disablement ending, this will be treated as a continuation of that same claim.

In the event of: you becoming involuntarily unemployed (e.g. redundant) for at least 30 days.

To claim for the involuntary unemployment benefit, you must be in active paid employment (i.e. gainfully employed) at the time you become involuntarily unemployed and must be actively seeking work.

Payment: We’ll pay a monthly benefit (up to $10,000 subject to loan type) to help cover your repayments for up to six months or until you are no longer involuntarily unemployed (whichever occurs first). Benefits payable are calculated differently for different types of home loans:

• If you've been making principal and interest repayments under your loan, you’ll receive a monthly benefit to cover repayments (up to $10,000 a month).
• If you've been making interest-only repayments under your loan or if you have a line of credit, you’ll receive a monthly benefit of 0.75% of your life cover (up to $7,500 a month).

Example of how it works:

If you’re involuntarily unemployed and you have a principal and interest loan with a monthly loan repayment of $4,000, then we’ll pay $4,000 a month to your loan account.

If you’re involuntarily unemployed and you've been making interest only repayments under your loan or if you have a line of credit, we’ll pay a monthly benefit equal to 0.75% of your life benefit e.g. If your life benefit is $500,000, we’ll pay $3,750 a month to your loan account.

What’s not covered:

You will not be covered if you:

• are involuntarily unemployed for a period less than 30 days
• receive written or verbal notification of impending unemployment before, or within 30 days of, the start date
• receive written or verbal notification of impending unemployment before, or within 30 days of, the effective date of a loan increase (for the increased portion of the loan)
• are in a fixed term contract, seasonal or casual work that ends
• choose to end your employment
• are in a position which automatically ceases under a partnership agreement or law
• are unemployed due to industrial action
• are unemployed due to normal or uncomplicated pregnancy or childbirth
• become unemployed when employed by your family
• are self-employed or in a business partnership which temporarily ceases to trade except where caused by natural disaster
• are under the influence of drugs or alcohol
• are involved in criminal activities.

Limitations to the number of claims that I can make:

You can make one claim a year - and up to three for the life of the policy.