Most families could not cover their home loan repayments for very long at all if the worst happened and someone died or got a terminal illness. UPDATE: LINKS TO CLAIM FORMS FOR HOME LOAN COMPASSIONATE CARE ARE BELOW. SCROLL DOWN TO CLICK THROUGH TO MAKE A CLAIM FOR COMMONWEALTH BANK COMPASSIONATE CARE HOME LOAN COVER. New research from Commonwealth Bank shows the financially precarious lives most Australians live. 55 per cent of families with dependents under the age of 18 could not continue to make ongoing home loan repayments, without financial assistance, if one of the parents, or a child, dies. A massive 45 per cent of borrowers without children couldn’t continue to make their loan repayments forever without assistance, if their partner dies or gets a terminal illness. Now Australia’s biggest home loan lender, with about 25 per cent of the market, Commonwealth Bank, is covering the repayments of owner occupiers in that worst-case scenario. InfoChoice has checked out the offer and reviewed CommBank’s new Home Loan Compassionate Care policy. Commonwealth Bank has announced a new, free, life insurance type policy for owner occupier home loan borrowers under the age of 59 years old. If your partner, dependent or spouse dies or is diagnosed with a terminal illness, Commonwealth Bank will pay your mortgage repayments for up to 12 months. The cover is provided to all borrowers by CBA in partnership with the AIA insurance group. Am I eligible for Commonwealth Bank Compassionate Care? Commonwealth Bank says Home Loan Compassionate Care is available for new and existing CommBank Owner Occupied home loans including loans taken out through a mortgage broker. CommBank says a “claim event” happens if you (the borrower) or your spouse or your dependent(s) are all aged between 18 and 59 and one of you dies or is diagnosed with a terminal illness. A dependent can be aged under 18. CommBank Home Loan Compassionate Care covers owner occupier borrowers with: Commonwealth Bank standard variable rate home loans. Currently, Commonwealth Bank Complete Standard Variable Rate (P&I) home loan is chargin 4.80% pa (comparison rate 4.95% pa). Commonwealth Bank Fixed Rate Home Loans. Currently, Commonwealth Bank’s Complete Standard Fixed Rate (P&I) without Wealth Package home loan range has rates starting at 3.14% pa (Comparison rates up to 4.82% pa). Commonwealth Bank Extra Home Loans. Currently, Commonwealth Bank has interest rates on the Extra Home Loan (OO, P&I) for LVRs up to 70% set at 3.22% pa (comparison rate 3.23% pa). Compare Commonwealth Bank home loans, rates, fees and features easily on one page and click through for more details at InfoChoice. CommBank Home Loan Compassionate Care EXCLUSIONS There are many major exclusions from Commonwealth Bank’s new complimentary home loan life insurance cover. Commonwealth Bank Home Loan Compassionate Care is NOT available for Investment home loans. CommBank’s Home Loan Compassionate Care policy is also not available on: Viridian Line of Credit; Equity Unlock for Seniors; Commonwealth Portfolio loans Commonwealth Bank Staff Housing loans Home loans for business purposes Home loans taken out by organisations or trusts Home loans that are closed, written off, sold or discharged Any other home loan that is not Commonwealth Bank branded. Do I have to live in my home to have an owner-occupier home loan? Many home-owners live in their home for many years then move and rent their property, often without notifying their lender of the change in use of the residence. Commonwealth Bank says for the purposes of Home Loan Compassionate Care cover, it will determine whether you are really ‘Owner Occupied,’ based on the address and ID records they hold at the time you make the claim. Commonwealth Bank says “If you have a CommBank Investment home loan and its purpose changes to Owner Occupied, please notify us as soon as possible.” That will ensure you are eligible for Home Loan Compassionate Care. How to get Commonwealth Bank Home Loan Compassionate Care cover CBA senior executive Angus Sullivan said there is no need to take action to get compassionate care cover on your home loan. “In designing this protection, we’ve made sure there’s no need to sign up or to activate it. “A dedicated team has undergone specialised training to handle these sensitive matters.” APPLY FOR COMMONWEALTH BANK HOME LOAN COMPASSIONATE CARE cover: These links (from Commonwealth Bank will download claim forms for you complete: Download Home Loan Compassionate Care claim form (Terminal illness) from CommBank Download Home Loan Compassionate Care claim form (Death) from CommBank Go directly to Commonwealth Bank home loan rates and fees information at InfoChoice. Compare Commonwealth Bank home loan rates with other lenders at InfoChoice. The products compared in this article are chosen from a range of offers available to us and are not representative of all the products available in the market and influenced by a range of factors including interest rates, product costs and commercial and sponsorship arrangements InfoChoice compares financial products from 145 banks, credit unions and other financial institutions in Australia. InfoChoice does not compare every product in the market. Some institutions may have a commercial partnership with InfoChoice. Rates are provided by partners and taken from financial institutions websites. We believe all information to be accurate on the date published. InfoChoice strives to update and keep information as accurate as possible. The information contained on this web site is general in nature and does not take into account your personal situation. Do not interpret the listing order as an endorsement or recommendation from us. You should consider whether the information is appropriate to your needs, and where appropriate, seek professional advice from a financial adviser. If you or someone you know is in financial stress, contact the National Debt Helpline on 1800 007 007.