NAB targets SMEs with loan insurance product
(3 August 2005 – Australia) National Australia Bank is targeting SMEs with a loan insurance product that covers outstanding debts in case of death, disablement or unemployment.
NAB executive general manager of Business and Private Banking, George Frazis, said the product, called National LoanCover, covers a person’s immediate debt obligations on their home loan.
"Every business person should have a strategy to clear their debts, especially how they will repay their home loan, if they become ill or get caught in an accident," he said.
The product can be funded from an SME’s loan account or deducted from personal savings or transaction accounts. It also pays involuntary unemployment benefits of up to $5,000 a month, for a maximum of four months, and covers loans up to $400,000, depending on the customer’s age.
"One way to determine whether or not such insurance is needed is to pose the question ‘What would happen to my debts, my family and my business if I was seriously injured or die?’ If you don’t have an answer, or don’t like the situation that would arise, then you need insurance and most likely a succession plan," Frazis said.
"Every business person should have a strategy to clear their debts, especially how they will repay their home loan, if they become ill or get caught in an accident," he said.
The product can be funded from an SME’s loan account or deducted from personal savings or transaction accounts. It also pays involuntary unemployment benefits of up to $5,000 a month, for a maximum of four months, and covers loans up to $400,000, depending on the customer’s age.
"One way to determine whether or not such insurance is needed is to pose the question ‘What would happen to my debts, my family and my business if I was seriously injured or die?’ If you don’t have an answer, or don’t like the situation that would arise, then you need insurance and most likely a succession plan," Frazis said.
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