i

ASB Personal Loan Insurance

Please note that ASB Personal Loan Insurance is no longer available for new customers. This page is to help existing Personal Loan Insurance customers understand what benefits they are covered for.

Enhancements to ASB Personal Loan Insurance

Improvements to your ASB Personal Loan Insurance take effect from 15 February 2021 and will apply to any new claim events occurring on or after this date. Your policy is provided by AIA New Zealand Limited (AIA, formerly known as Sovereign).

You do not need to do anything for the improvements to apply to your policy. We do encourage you to read the information below and contact us if you have any questions.

What improvements have been made?

AIA regularly reviews its products to ensure they are providing you with good value. Your policy has been updated to include the following enhancements.

Permanent Disablement
  • Reduction in the wait period from six months to three months
Temporary Disablement
  • The limit for the maximum amount you can claim has increased from $50,000
  • The assessment criteria for employed and self-employed customers has been improved and their claims for Temporary Disablement will be assessed on their inability to perform the key income producing duties of their role for at least 10 hours per week for 30 days
  • The assessment criteria for unemployed customers has been improved and their claims will be assessed on their inability to carry out normal household duties for at least 10 hours per week for 30 days
Suicide or deliberate injury exclusion
  • The suicide or deliberate injury exclusion has changed from being a permanent exclusion to a 13-month stand-down from the policy start date

You can find full details of these changes in the Enhancements Summary for ASB Personal Loan Insurance product changes

Cover and claim eligibility

It's important to understand your cover and claim eligibility should you ever need to claim. Read through our ASB Personal Loan Insurance Key Features and Benefits to find out more.

Benefits at a glance

  • The balance of your Personal Loan (up to $50,000) can be paid in the event of your death or diagnosis of a terminal illness
  • You're covered 24 hours a day anywhere in the world
  • The premium you pay decreases as your loan balance decreases
  • Pays your loan instalments for up to 24 months ($60,000 max), if you are temporarily disabled for more than four weeks

Policy cover

What is ASB Personal Loan Insurance?

ASB Personal Loan Insurance can help provide financial assistance with your personal loan repayments in the event of your death, illness, injury, redundancy or bankruptcy. 

This cover does not include additional protection to cover things such as rent, school fees and other every day expenses.

If you are an ASB Personal Loan Insurance customer, consider reviewing your cover to ensure that it is still right for you, as circumstances change and so can your insurance needs. Simply call us on 0800 200 252 or visit your nearest ASB branch. We’re happy to help.

What you're covered for:

When considering the suitability of this insurance it is important to understand that your eligibility and the claims criteria for some of the benefits are dependent on your current working arrangements and your age. As this might have changed since you took out the policy, it is important to review your policy.

What benefit can it provide?

Events you can claim for 1 

 
What benefit will be paid


Stand-down period

 
You are temporarily disabled as defined under the policy.
Different definitions of temporary disablement apply depending on employment status.
We will pay your loan instalments while you are temporarily disabled. Maximum of 24 months, $60,000, or until the loan is repaid (whichever happens first).
14 days after the policy start date.
You are permanently disabled as defined under the policy.
Different definitions of permanent disablement apply depending on employment status.
We will pay off your loan balance as a lump sum, up to a maximum of $50,000. An additional 15% of this payment as a Cash Assistance benefit.
14 days after the policy start date.
You are diagnosed with a critical illness as defined under the policy.
No employment conditions apply.
We will pay off your loan balance as a lump sum, up to a maximum of $25,000.
3 months after the policy start date.
You pass away or are diagnosed as having a terminal illness as defined under the policy.
No employment conditions apply.
We will pay off your loan balance as a lump sum, up to a maximum of $50,000.
An additional 15% of this payment as a Cash Assistance benefit.
14 days after the policy start date.
Your spouse or child passes away or is diagnosed as having a terminal illness as defined under the policy.
No employment conditions apply.
We will pay off your loan balance as a lump sum, up to a maximum of $5,000.
14 days after the policy start date.
You are made involuntarily redundant and are unable to find work for more than 30 days.
You must have been working for financial gain in a permanent job for at least 20 hours per week.
We will pay your loan instalments while you are unemployed due to redundancy. Maximum of 6 months, $25,000, or until the loan is repaid (whichever happens first).
30 days after the policy start date.
You are self-employed and made bankrupt.
You must be self-employed for financial gain for at least 20 hours per week.
We will pay off your loan balance as a lump sum, up to a maximum of $25,000.
30 days after the policy start date.

1: The above information is a summary of benefits only. Benefit exclusions, stand-down periods and eligibility criteria apply. Please refer to your policy document for full terms and conditions.

 

Breakdown of employment eligibility

Events you can claim for 1 

 
You are employed for financial gain for 20 or more hours a week
You are self-employed for financial gain for 20 or more hours per week
Other policyholders


You die or are diagnosed as having a terminal illness as defined under the policy.
You are diagnosed with a critical illness as defined under the policy.
You are temporarily disabled as defined under the policy, for more than 30 days.
Your temporary disability must prevent you from performing, for at least 10 hours a week, the key income producing duties of the role you were involved in prior to disablement, for a period of 30 consecutive days or more.
Your temporary disability must prevent you from performing, for at least 10 hours a week, the key income producing duties of the role you were involved in prior to disablement, for a period of 30 consecutive days or more.
Your temporary disability must prevent you from carrying out normal household duties for at least 10 hours a week for a period of 30 consecutive days or more on medical advice acceptable to AIA. 
You are permanently disabled as defined under the policy for more than three months.
Subject to you having a disability which in the opinion of AIA will prevent you ever again engaging in all of the duties relating to what they consider to be your usual occupation.
Subject to you having a disability which in the opinion of AIA will prevent you ever again engaging in all of the duties relating to what they consider to be your usual occupation.
Subject to you being under age 70 at time of claim, alternative criteria applies. For full details of claim criteria please refer to page 12 of the policy wording.
Your spouse or child passes away or is diagnosed as having a terminal illness as defined under the policy.
You are made involuntarily redundant and are unable to find work for more than 30 days.
Not Eligible
Not Eligible
You are self-employed and made bankrupt.
Not Eligible
Subject to you being self-employed for financial gain for at least 20 hours per week.
Not Eligible

1: The above information is a summary of benefits only. Benefit exclusions, stand-down periods and eligibility criteria apply. Please refer to your policy document for full terms and conditions.

What you are not covered for

There are a number of circumstances, called 'exclusions', when AIA will not pay a benefit under your policy.

These include claims resulting from:

  • Pre-existing medical conditions within 6 months of your policy start date
  • Suicide or deliberate injury within 13 months of your policy start date
  • Excess breath or blood alcohol
  • Misuse of drugs, or non-compliance with medical treatment
  • Pregnancy
  • Criminal conduct
  • A terminal illness diagnosed prior to commencement of the policy.

For full details of the exclusions relating to this policy, please refer to the benefit sections of the policy wording.

Is it mandatory to have ASB Personal Loan Insurance?

It is not mandatory to have this insurance so if your circumstances have changed or if you think this insurance may no longer be suitable for you, it is important to let us know. ASB Personal Loan Insurance can help you review your current insurance needs and ensure you have the insurance solution that’s right for you.

How much does it cost?

The cost of the insurance is based on the outstanding balance of your loan. The monthly premium rate is 35 cents (fortnightly is 16.15 cents) per $100 (pro-rated) of the outstanding loan balance.

For example, if your outstanding loan balance was $3,000 the insurance premium for that month would be $10.50 ($3,000/100 x $0.35).

The premium will be waived during the time you are receiving a benefit payment under the Temporary Disablement or Redundancy benefits.

When would your policy end?

Unless your policy is cancelled earlier by you, your policy will end when your loan is repaid, you stop paying the premiums, you reach age 77, we make a lump sum payment under the terms of the policy (excluding those made on the Death or Terminal Illness of a Spouse or Child benefit) or if all ASB Personal Loan Insurance policies are cancelled under the terms of the policy.

In what circumstances might this insurance be unsuitable for you?

The policy may not be suitable for you if:

  • Your current employment status means you will not be eligible for a number of the benefits, including if you are on any type of unpaid leave and have been for more than 30 days
  • You have existing insurance which provides all or a number of the same benefits
  • You do not fully understand the policy’s benefits and terms, and feel unable to make an informed decision.

Please note, it is important that you are satisfied that you can afford this premium in addition to your ongoing personal loan repayment.

How can you cancel your policy?

You can cancel this policy anytime by calling us on 0800 501 223 or visiting your nearest ASB Branch.

ASB and AIA - a partnership you can trust

Partnership is all about trust. When it comes to protecting you and your family’s financial wellbeing, you can trust ASB and AIA to be there for you. ASB has helped thousands of New Zealanders protect themselves over the years. Our ASB Insurance Managers and frontline teams make life, loan, health, and income protection insurance easy. It’s about keeping you one step ahead, by making sure difficult and even heart-breaking situations don’t turn into financial setbacks as well. We've now partnered with AIA, New Zealand's largest* life insurance company. As our underwriter, they stand behind all our policies.

All licensed insurance providers are required to have a financial strength rating from an approved rating agency. You can find details of AIA’s current rating and rating agency at www.aia.co.nz, or at any office of AIA New Zealand Limited.

View AIA's financial strength rating.

Making a claim

To claim on your ASB Personal Loan Insurance policy, simply contact us on 0800 501 223 or visit an ASB Branch to get an insurance claim form.

Once completed, please return the form to us by:

  • Scanning the documentation and emailing it to insurances@asb.co.nz or;
  • Dropping it into an ASB Branch and asking them to scan and email it to insurances@asb.co.nz or;
    Posting it to:
    Insurance Operations
    ASB Bank
    PO Box 35
    Shortland Street
    Auckland 1140
    New Zealand

Once we've received your form we’ll be in touch to confirm the claim has been received and request any further information if required to assess the claim. There may be some instances when you are unable to make a claim, you can find out more in the policy wording.

Time to review your insurance needs?

We can help you review your current insurance needs and ensure you have the insurance solution that is right for you.

Call us

Simply call us on 0800 200 252.

0800 200 252

Enquire now

Come into any ASB branch or fill out an enquiry form . We're happy to help.

Enquire now

You might also like

ASB Lifestyle Security Plan

A personalised insurance that can offer comprehensive insurance solutions including life, loan and income protection.

*AIA is the largest life insurer in New Zealand by market share. Source: Q3-20 Market share data from New Zealand Financial Services Council.

The availability of insurance cover is subject to your application being approved. All applications are subject to individual consideration. Special conditions, exclusions or premium loadings may apply. An excess may apply for health insurance policies. For full details refer to the Policy Document which is available on request from any ASB branch. ASB life, health and disability insurance is underwritten by AIA New Zealand Limited ("AIA").

Life, loan and income protection insurance ASB personal loan insurance | ASB