ASB bank has launched a new scheme to help households through bereavement.

The benefit will cover a customer’s home loan interest costs for around 12 months if one of the borrowers dies.

It is a free policy, that will be extended to around 160,000 eligible customers.

ASB's general manager of retail banking Craig Sims told Heather du Plessis-Allan a large cluster of society is eligible.

"Everybody who has a home, who's aged 18 to 64 with ASB and it's in your own name as oppose to a company name, you're automatically eligible."

Mr Sims added if the house is in a trust the occupant(s) does not qualify.