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ASB Personal Loan Insurance

We can help repay your personal loan should the unexpected happen to you, whether it is due to redundancy, bankruptcy, critical illness, disablement, terminal illness or death.

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 ($50,000 max), if you are temporarily disabled for more than four weeks

What you are covered for

Events you can claim for 1 
Employment eligibility
What benefit will be paid
Earliest a claim will be considered2
You are temporarily disabled as defined under the policy.
Different definitions of temporary disablement apply depending on employment status.
A monthly payment while you are temporarily disabled, equal to your loan instalments to a maximum of 24 months, $50,000, 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.

A payment of your loan balance as a lump sum, up to a maximum of $25,000.

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.
A payment of your loan balance as a lump sum, up to a maximum of $25,000.
3 months after the policy start date.
You die or are diagnosed as having a terminal illness as defined under the policy.
No employment conditions apply.
A payment of 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 die or are diagnosed as having a terminal illness as defined under the policy.
No employment conditions apply.
A payment of 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.
For at least 3 months prior you must have been working for financial gain in a permanent job for at least 20 hours per week.
A monthly payment while you are unemployed due to redundancy of your loan balance to a 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.
A payment of 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.

 

2: This stand-down period does not apply if the claim is a result of an accident.

ASB Personal Loan Insurance is underwritten by Sovereign Assurance Company Limited (‘Sovereign’). For a full description of cover, please refer to the policy wording.

What you are not covered for

There may be some circumstances when you are unable to make a claim, called 'exclusions'. These include claims resulting from:

  • Pre-existing medical conditions which occur within 6 months after the policy starts;
  • Suicide or deliberate injury;
  • 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.

You can find out more in the policy wording.

How much it costs

The premium cost is calculated on the outstanding balance of your Personal Loan and is debited automatically from your choice of an ASB account either fortnightly or monthly, depending on the frequency of your premium payment.

Premiums are calculated using the following rates:

Fortnightly premium rate:

16.15 cents for each $100 (pro-rated) of the outstanding Personal Loan balance.

For example, if the outstanding loan balance is $3,000, the cost of cover for that fortnight is $4.85 ($3,000/100 x 0.1615).

Monthly premium rate:

35 cents of each $100 (pro-rated) of the outstanding Personal Loan balance.

For example, if the outstanding loan balance is $3,000, the cost of cover for that month is $10.50 ($3,000/100 x 0.35).

ASB and Sovereign - a partnership you can trust

In times of uncertainty, it's important to know who you can trust. And when you're relying on someone to protect you and your family’s financial wellbeing, you want to be sure that they’ll be there when you need them.

Sovereign Assurance Company Limited ("Sovereign"), the underwriter of the insurance cover, has an A+ (Superior) financial strength rating from A.M. Best, an approved rating agency, so you can be confident of receiving the financial support you need when the unexpected happens.

View Sovereign's financial strength rating.

Making a claim

It's easy to claim on your ASB Personal Loan Insurance policy. Simply contact us on 0800 501 223 (selecting option 5) 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;
  • Faxing it to 09 337 2424 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.

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ASB life, health and disability insurances are underwritten by Sovereign Assurance Company Limited (“Sovereign”). Sovereign is part of the Commonwealth Bank of Australia Group and is a related company of ASB Bank Limited and its subsidiaries (the “Banking Group”). None of the Banking Group, the Commonwealth Bank of Australia, or any other company in the Commonwealth Bank of Australia Group, or any of their directors, or any other person, guarantees Sovereign or its subsidiaries, or any of the products issued by Sovereign or its subsidiaries. For full details refer to the relevant policy document which is available on request from any ASB branch or by calling 0800 200 252. 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. See further information about Sovereign.

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