ALI Group responds to CBA’s Compassionate Care
ALI Group, the leading provider of mortgage protection to Australian home and property buyers has welcomed CBA’s introduction of Compassionate Care to its eligible home loan customers.
For ALI Group, the underlying underinsurance of mortgage holders in Australia is a concern we have been addressing for over 16 years. For anyone taking out a home loan or mortgage, the risks of facing financial hardship in the event of serious illness or worse, may be very real.
The fact that Australia’s leading home loan provider has introduced Compassionate Care has reinforced how real the risk of financial hardship is for mortgage holders.
Whilst this initiative will be very positive in raising awareness of these risks, it is important to note however that the cover is very limited in that it provides only around 1 year of home loan repayments in the event of terminal illness and death. Australian mortgage holders may still struggle with financial hardship in the event where there is a critical illness or trauma that does not result in death.
“Most of our mortgage protection claims arise as a result of critical illness, where the claimant recovers but at a great financial cost, which includes but is not limited to expensive treatment, medicines, surgeries, travel costs, loss of income and other living expenses”, says Huy Truong CEO of ALI Group.
“The good news is, with advancements in medical research, survival rates are increasing for Australians impacted by a cancer, heart attacks, strokes and other serious illnesses. One in every three Australian men and one in every four women will be diagnosed with cancer. However, the 5-year survival rate for the more common diagnosed cancers of breast and prostate, are above 90% .
“The bad news is the out-of-pocket costs and long-term expenses which come with a serious illness like cancer. An Australian male between the age of 25 – 34 years, diagnosed with prostate cancer can expect to be out of pocket by over $36,800 and could need over 48 days off work in recovery . It is in view of these realities, we ask for Australians to consider how they would manage financially”, continues, Truong.
“Despite the limitations of Compassionate Care, we applaud CBA for putting this very important issue on the table. Compassionate Care will now ensure every mortgage broker in Australia who is offering an eligible CBA home loan, will discuss servicing a mortgage in the face of financial hardship brought about by serious medical events and highlight these risks to Australian home and property buyers.”
ALI Group believes in providing mortgage brokers with a competitive and convenient mortgage protection solution for the consideration of their clients. By offering a protection plan for a wide range of critical life events, ALI help Australians keep the home and property they have worked so hard to purchase without financial hardship.
If you would like to learn more about Mortgage Protection Plan, visit the ALI Group website.
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