ASB has launched a new benefit that will cover a customer’s home loan interest costs for twelve months in the event of the death of one of the borrowers.
The benefit is called Compassionate Care, and has been launched in partnership with insurer AIA to provide “support for customers who they need it most.” ASB estimates that approximately 160,000 ASB borrowers will be automatically eligible from today.
Read more: Govt announces six month mortgage holiday for homeowners
Executive general manager retail banking Craig Sims says that ASB is the first bank to pilot a scheme like this in New Zealand, and it hopes it will provide vital support to those facing personal and financial difficulties.
“We know that mortgage repayments are one of the biggest financial commitments for most home owners, so in case the unexpected happens, we want to provide our customers with peace of mind and some breathing space during an incredibly difficult time, so they can focus on what’s important,” Sims said.
“We will proactively identify and pay-out when customers become eligible for Compassionate Care, so there’s one less thing to worry about.”
Compassionate Care is available to both new and existing borrowers and is free, with no sign-up or activation needed. The programme was developed as a result of talks with team members who have gone through a similar experience, and training has been offered to ensure they are all well placed to handle tough emotional situations.
Read more: First non-bank lender offers six month mortgage holiday
“Supporting our customers’ financial wellbeing is our main priority, and it’s important they know we are here for them, no matter the situation,” Sims said.
“Having to worry about financial stresses when someone you love passes away is the last thing we want people to be doing, so we hope this provides some reassurance and support.”
Customers are urged to see financial advice on their individual circumstances, as Compassionate Care is not a substitute for insurance cover.