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AIA Life Insurance Review

Russell Cain Updated: 22 May 2020

When you’re looking to protect your family and their financial future, it’s helpful to know if the insurer you’re interested in provides the type and level of coverage that will meet your requirements.

AIA Australia has over 45 years of life insurance experience. With more than 3.7 million Australian customers they are now one of our country’s biggest speciality insurer’s. Renowned for their financial stability, longevity, and fairness, they’ve paid out an impressive $1.4 billion in claims in 2018 alone.

How to assess AIA life insurance

Reviewing AIA life insurance is an important first step in your decision-making process. When purchasing an eligible AIA Priority Protection policy you’ll gain access to their health and wellness program, AIA Vitality.

They are reinsured by Hannover and have an A+ Standard and Poor’s rating. However, you must read the AIA PDS (Product Disclosure Statement) to gain a thorough understanding of the coverage they offer. This terms and conditions document is imperative when considering whether AIA Insurance suits you.

AIA’s life insurance products include:

From one year to the next, your life is changing, you start a new career, get married or divorced, you have a baby or you’re getting ready for retirement. With this in mind, AIA’s product range is designed to be flexible so you can adapt your cover to fit your ever-changing requirements.

Life Insurance

AIA’s Life Cover Priority Protection policy pays out a lump sum benefit to your beneficiaries when you pass away or have been diagnosed with a terminal illness.

This lump sum payment is designed to help your loved ones pay off outstanding debts and to support them in maintaining their current lifestyle.

Some of the built-in benefits you might receive include:

Income Protection

AIA income protection generally covers you for up to 75% of your income, paid as a monthly benefit, to help pay for ongoing expenses while you recover from a serious injury or illness that has left you unable to work for longer than your waiting period. You waiting period options are generally 14, 30 or 60 days, 3 months or 1 or 2 years.

You can choose how long you want to receive the monthly benefit: 2 or 5 years, or up to your age 65 or 70.

Your choice of waiting and benefit period generally depends on your occupational category.

If you’re on a tight budget you can also choose their more affordable ‘Income Protection Accident Only’ cover which pays a monthly benefit should you become Totally or Partially disabled due to an accidental injury.
 

Some of the free and paid-for benefits available on an AIA income protection policy include:

Total and Permanent Disability(TPD)

Pays a lump sum benefit if you are totally and permanently disabled due to an injury or illness. This product can be purchased as a stand-alone policy or as part of your life insurance cover.

AIA offers you a choice of TPD Definition: Any Occupation, Own Occupation, Loss of Independence or Home Duties.

There are a number of options offered by AIA Australia which can be purchased at an additional cost to further enhance your policy, including TPD Buy Back, School Fees Protector, Family Protection and Forward Underwriting.

Crisis Recovery

Crisis recovery insurance pays a lump sum benefit when diagnosed with a critical illness as defined by AIA. Illnesses such as cancer, multiple sclerosis, stroke, Parkinson’s, and heart attacks.

You can purchase this cover type as a stand-alone benefit or combine it with your life cover. Take note, if you decide to purchase the stand-alone option, you must survive for at least 14 days from the date of diagnosis.

Additional cost options include Forward Underwriting, Crisis Reinstatement, Crisis Recovery Buyback and Family Protection.

Business Expenses

To protect your small business, AIA Priority Protection provides Business Expenses Insurance, which offers a monthly benefit to cover fixed business costs if you are unable to work.

Fixed business costs covered include accounting fees, regular advertising costs, rent, leasing costs and more.

What are the benefits of AIA life cover?

One of the reasons for their popularity is the number of benefits that are generally built into the AIA Priority Protection life insurance products.

Exclusions referred to in the AIA life insurance PDS

Generally, most life insurance products have exclusions. Exclusions refer to circumstances under which AIA will not pay a claim.

General exclusions which apply to AIA Priority Protection products:

You will find the full list of exclusions for each specific policy type in the AIA PDS.

Understanding AIA life insurance claims

To claim for your AIA policy, you must:

• Notify AIA at your earliest possible opportunity. You can contact their AIA claims team via phone or email. Their contact details are available on their website.
• Request claim forms and ask which supporting documents you need to include.
• Complete the claim forms and provide it to AIA as soon as possible.
• Additional information might be requested, like additional documents as proof of any entitlement to claim, and you may need to be medically examined by a Medical Practitioner appointed by AIA.