Mortgage broker Aussie Home Loans, today announced that it has entered into a distribution agreement with AMP to provide its 220,000 customers with mortgage protection insurance.

The strategic alliance between the two companies, following a tender process contested by several major financial institutions, is another major third party agreement that Aussie has entered into to deliver the best financial products to the Australian public.

Aussie currently has agreements with GE, Macquarie Bank and ANZ to provide personal and car loans, mortgage funding and the Aussie MasterCard respectively.

Executive Chairman of Aussie, Mr John Symond, said “A home loan is one of the biggest financial decisions many Australians will make in their lives, yet too few consider that if they or their partner become terminally ill or die, they would not be able to continue living in the family home.

“We want to offer the product to provide the necessary protection for families, who should not be forced into moving home at a time of extreme stress”, he added.

Statistics show that the average Australian is under-insured by as much as $242,000. Many believe that life insurance as part of superannuation will cover them, however for most this cover only provides 20% of what they need.

Mr Symond said “Aussie takes the financial welfare of its customers very seriously and we believe that an ability to provide a cost effective insurance product is a significant benefit to our customers. The complexity of many life insurance products mean that customers often fail to cover themselves adequately. AMP’s Loan Cover product provides a simple and flexible process that will help our customers get the cover and peace of mind that they need”.

He concluded, “Like Aussie, AMP is a major Australian brand which conveys trust and integrity and we believe that together we can deliver solutions to our customers that are not only unique but will deliver great value into the future”.