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AAMI Life Insurance and Income Protection Review

Do you have car insurance or home insurance from AAMI or saw one of their television ads and wondering whether it’s worth getting life cover from them?
Fact Checked

Updated: 08 May 2024

In this article, we review whether AAMI’s slogan ‘Lucky you’re with AAMI’ also holds true for their life insurance products.

ComparingExpert does not currently have access to this provider. Visit www.aami.com.au to request a quote and compare their price and benefits to the Australian life insurance brands we have access to.

Who owns AAMI?

The Australian Associated Motor Insurers Limited (AAMI) is a general insurance provider, and Australia’s largest national car insurer, that also offers income protection and life cover products for direct purchase. They form part of the Suncorp Network, and Suncorp Life issues their life insurance policies.

AAMI life cover products available for purchase

The insurer offers death and terminal illness cover, income protection or involutory unemployment cover, as well as accidental injuries insurance.

Before choosing a policy, be sure to take your unique requirement and family situation into consideration and carefully review the AAMI PDS (product disclosure statement) before making a purchasing decision.

Death and Terminal Illness Cover

Receive a lump sum payment when you pass away or are diagnosed with a terminal illness. Life cover is available to all Australian and New Zealand citizens between the ages of 18 and 60 (inclusive). Cover stops once you reach your 99th birthday.

No medical tests are required. Generally, only the information provided on your application will be used to assess whether you’ll receive cover and under what conditions. Cover starts from $100,000 and goes up to $1 million.

Exclusions

No claim or premium refund will be payable if death is due to an intentional self-inflicted act or suicide within the first 13 months of your policy commencing.

AAMI income protection review

Income protection from AAMI provides 75% of your monthly income, up to $10,000 per month should you be unable to work because of a sickness or injury. No medical tests are required, but you must be working for at least 20 hours per week in your gainful occupation. This policy has a 30-day waiting period and a choice of benefit period; 1 or 2 years.

Redundancy benefit
Provides a monthly benefit of 75% of your regular income, up to $4,000 per month for up to 3 months if you’re involuntarily unemployed for a minimum of 30 days. You can add this optional benefit for an extra fee and be eligible for a claim 6 months after your policy commencement date.
Waiver of premium benefit
Should you be unable to work because of a disability or redundancy, the insurer will waive your income protection premiums while you remain on a claim.

Exclusions

No benefit would be payable if the claimable event were directly or indirectly as a result of:

Accidental injury insurance

Pays a lump sum benefit of up to $100,000 if you have an accident and suffer one of the injuries listed in your PDS. For example, loss of limbs or sight, fractures, dislocations, and burns. Available to Australians between the ages of 18 and 75 (inclusive) and ends on your 90th birthday.

You have the choice between the Standard or Plus accidental injuries package. The main difference between the two packages is the amount of cover each one provides and their corresponding premium. Generally, the severity of your injury and the package you choose will influence the lump sum payout received.

For example, for loss of sight, a Standard package will usually pay $50,000, while a Plus package pays $100,000.

Frequently Asked Questions and Answers

You or your nominated beneficiary can start the life insurance claims process by contacting the insurer as soon as possible. You will then be issued a claims pack to fill in and as soon as all claim forms have been completed, and additional information gathered, you can send it off to the insurer.

You can get a quote by visiting www.aami.com.au/life-insurance, or you can call them directly on 13 22 44.

You can contact AAMI via phone on 13 22 44 or email them at [email protected]. Their life insurance customer service is available 24 hours a day, 7 days a week. If you need to post documents, you can send it to GPO Box 3950, Sydney, NSW, 2001.

AAMI life insurance products are issued by Suncorp Life & Superannuation Limited ABN 87 073 979 530 AFSL 229880 (Suncorp).

Life cover premiums are generally calculated based on your age, gender and smoking status. For example, a 35- year-old male that does not smoke can expect to pay $21.63 a month for $200,000 worth of life cover. If he did smoke, his premium might cost double, $41.21 (as at 2015).

There are two types of discounts available; the large sum insured discount and family discount. The larger your sum insured, the higher your discount; up to 30% off for $500,000 or more cover. You’ll usually get a further 10% discount when an immediate family member also purchases a life insurance policy.

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Specialist

Russell is the founder and CEO of Life Insurance Direct and has been quoted in The Sydney Morning Herald, The Age, Independent Financial Adviser, Risk Adviser, Adviservoice, and Insurancenews. Russell has over 15 years’ experience in the Australian life insurance & financial services sector and is instrumental in driving the latest innovations in our insuretech platform.

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