Explore the types of coverage offered by AIA, such as Life Cover, Total and Permanent Disability (TPD) Insurance, Crisis Recovery, and Income Protection. We’ll also discuss AIA Vitality, an optional wellness program, that rewards policyholders for maintaining healthy habits. By participating in AIA Vitality, customers can earn discounts on premiums and additional reward. Generally, you’ll need to apply for AIA Vitality seperately, and it won’t be part of your policy terms.
Key facts
- Optional riders such as TPD Buy-back, Crisis Recovery Buy-back, and Waiver of Premium are available under certain plans and subject to eligibility and extra costs, as specified in your PDS. .
- AIA Vitality rewards members with premium discounts for engaging in healthy lifestyle activities.
- AIA offers a wide variety of different built-in and optional paid benefits that can enhance your coverage..
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Types of Cover Offered by AIA
Selecting the right type of cover is important to match your life stage and financial requirements. AIA offers a range of options designed to protect you and your family in different circumstances. Below is an overview of the types of cover available from AIA:
Life Cover provides financial security through a lump sum payment in the event of your death or if you are diagnosed with a terminal illness, defined as having less than 24 months to live as confirmed by two medical professionals, of which one should be a specialist. This payout helps support your loved ones by covering expenses like mortgages, school fees, or general living costs.
TPD Cover offers a lump sum payment if you become totally and permanently disabled and can no longer work, according to your chosen definition of disability (Own Occupation or Any Occupation). This benefit helps cover medical bills, home modifications, and ongoing living expenses, ensuring financial stability during a life-altering disability. It’s generally important to note that certain definitions, such as ‘Own Occupation,’ may not be available in superannuation policies and could impact premiums.
Trauma Cover provides a lump sum if you’re diagnosed with a significant medical condition, such as cancer, heart attack, or stroke. This payout can be used to cover medical treatments, rehabilitation, or other expenses that arise during your recovery. A 90-day qualifying period may apply to certain conditions, and there is typically a 14-day survival requirement for Crisis Recovery Stand Alone policies.
Income Protection Cover replaces up to 70% of your income if you’re unable to work due to illness or injury. Benefits vary based on policy options, with waiting periods and benefit amounts subject to change after specific periods. It provides a monthly benefit, helping you keep up with financial commitments like rent, mortgage, and bills while focusing on your recovery. Generally, you’ll receive your monthly benefits after you have completed the waiting period.
About AIA
AIA Australia is part of the global AIA Group, one of the largest life insurance companies in the Asia-Pacific region. Founded in 1919, AIA has built a long-standing reputation for providing reliable and comprehensive life insurance solutions. In Australia, AIA has been serving customers for over 50 years, offering a range of products that meet the unique requirements of individuals and families.
AIA Australia ranks as the second-largest life insurer in the Australian market, with a 17% market share*(Plan For Life Actuaries & Researchers (Data published 12 February 2024) . While AIA offers several policy options, the right policy for you will generally depend on your financial goals and circumstances. It’s important to consider your requirements and consult a life insurance specialist by filling in the quote form above.
How Much Does AIA Life Insurance Cost?
The cost of AIA Life Insurance is determined by several factors, including your age, health, occupation, smoking status, and the amount of coverage you choose. Additionally, AIA offers two premium structures: Variable Age-Stepped premiums and Variable Premiums. Variable Age-Stepped premiums start lower but increase over time as you age, while Variable Premiums don’t change based on your age throughout the policy term but begin at a higher rate. For example, a 35-year-old male residing in NSW looking for $1 million in Life Cover may expect to pay around $47.74 per month for Variable Age-Stepped premiums. However, it’s important to note that your premiums will generally vary depending on your personal circumstances. Fill in the quote form above and one of our specialists will get back to you to discuss your situation.
Review AIA Life Cover PDS
The AIA Priority Protection Product Disclosure Statement (PDS), published in May 2024, provides essential information on the types of cover available under AIA, including Life Insurance, TPD, Crisis Recovery, and Income Protection.
Life cover
Life Cover is designed to offer financial security to your loved ones during your death or terminal illness. It provides a lump sum payout, ensuring beneficiaries can manage ongoing expenses such as mortgages, school fees, or living costs. This cover is available inside and outside of superannuation, giving flexibility to policyholders.
Built in Benefits
- Death Benefit: Pays a lump sum equal to your Sum Insured if you pass away.
- Terminal Illness Benefit: Pays the Sum Insured in advance if you are diagnosed with a terminal illness and expected to live less than 24 months and confirmed by two medical practioners, one of which should be a specialist.
- Final Expenses Benefit: Advances 10% of the Sum Insured, up to a maximum of $25,000, to help cover immediate financial expenses while the death claim is being assessed.
- Complimentary Family Final Expenses: Pays the lower of $20,000 or 10% of the Sum Insured if your child (between the ages of 2 and 17) passes away or is diagnosed with a terminal illness. However, Benefit Indexation does not apply to this benefit.
- Benefit Indexation: Automatically increases your Sum Insured annually by the higher of the Consumer Price Index (CPI) or 5%. You can opt out of indexation on your application form or before any Policy Anniversary.
- Counselling Benefit: Provides $200 for each session of grief counselling you or an immediate family member attend, up to a maximum total value of $1,200 per Life Insured.
Optional Paid Benefits
- Family Protection: Provides a benefit in the event that a child passes away or suffers a serious medical condition, offering financial support for medical or funeral expenses.
- Forward Underwriting: Allows you to increase your insurance cover within the limitations as defined in the PDS in the future without medical underwriting, giving greater flexibility for changing financial needs.
- Business Safeguard Forward Underwriting: Tailored for business owners, this benefit lets you increase your cover for business-related changes without medical evidence within the limitations of the PDS.
Total and Permanent Disability (TPD) Insurance
TPD Cover offers a lump sum if you become totally and permanently disabled and are unable to work. This financial support can be used for medical costs, home modifications, or ongoing living expenses, ensuring you maintain your quality of life even when you cannot earn an income. Depending on your occupation, TPD can cover disabilities that prevent you from working in your ‘Own Occupation’ or any suitable occupation based on your training and experience. The plan also includes partial payments for certain disabilities, such as the loss of a limb or eyesight.
Built in Benefits
- Total and Permanent Disability Benefit: Pays a lump sum equal to the Sum Insured if you are disabled according to your applicable TPD definition (Own Occupation, Any Occupation, Universal, or Home Duties).
- Accidental Total and Permanent Disablement: Pays a lump sum equal to the Sum Insured if you are disabled solely due to an accidental injury, based on the applicable TPD definition.
- Partial and Permanent Disablement: Provides a partial payment from your Sum Insured if you suffer the permanent loss of one arm, one leg, or sight in one eye. The advance payment is 25% of the Sum Insured, up to a maximum of $750,000.
- Conversion to Loss of Independence: Converts TPD coverage to a Loss of Independence benefit when your TPD benefit ends. This continues protection until the Policy Anniversary prior to your 100th birthday.
- Conversion Option: Allows you to convert your TPD cover under a Superannuation Life Cover Plan to an Ordinary Plan before the Expiry Date of your TPD benefit.
- Day 1 TPD: Removes the qualifying period for benefit payments for selected “Other Serious Crisis Events.”
Optional Paid Benefits
- Total and Permanent Disablement Buy-back: Automatically reinstates the Life Cover Sum Insured that was reduced after paying 100% of your TPD claim. Available without the need for medical evidence.
- Family Protection: Provides financial assistance if a child passes away or suffers a serious medical condition. This is available only under TPD/Accidental TPD Stand Alone.
- Repayment Relief: Offers financial support for debt repayments such as mortgages in the event of disability or serious illness. Available only under TPD Stand Alone.
Crisis Recovery
Crisis Recovery Cover pays a lump sum if you’re diagnosed with a specified critical illness, such as cancer, heart attack, or stroke. The payout can be used for medical treatments, recovery costs, or necessary lifestyle adjustments, providing some financial stability during a health crisis. To receive the payout, there is a 14-day survival period after diagnosis, and some illnesses have a 90-day qualifying period. Built-in benefits include an Accommodation Benefit to cover costs for family members during hospital stays, and a Counseling Benefit to support mental health.
Built in Benefits
- Crisis Events: Pays a lump sum equal to the full Sum Insured if you are diagnosed with a listed Crisis Event after the applicable qualifying period. If you select the Crisis Recovery Stand Alone benefit, you must survive for a period of 14 days from the date of diagnosis.
- Partial Benefit Payments: Provides a partial payment if you are diagnosed with certain Crisis Events after the applicable qualifying period. Survival for 14 days from the date of diagnosis is required for the Crisis Recovery Stand Alone benefit.
- Chronic Diagnosis Advancement: Advances a partial payment if you are diagnosed with certain Crisis Events. However, it’s important to note that this benefit only applies to specific
- Conversion to Loss of Independence: Converts Crisis Recovery to a Loss of Independence benefit when the Crisis Recovery benefit ends, providing continued coverage until the Policy Anniversary prior to your 100th birthday. This option is not available for certain occupation categories or with Crisis Recovery Stand Alone.
Optional Paid Benefits
- Crisis Extension: Expands the range of medical conditions covered under Crisis Recovery, providing additional protection for a wider range of illnesses.
- Crisis Recovery Buy-back: Allows you to reinstate your Life Cover 12 months after a Crisis Recovery claim, ensuring continued protection without medical evidence. (Not available under Crisis Recovery Stand Alone plans.)
- Crisis Reinstatement: Enables you to reinstate your Crisis Recovery cover after a claim has been paid, ensuring ongoing protection for future diagnoses.
- Family Protection: Provides financial support if a child passes away or is diagnosed with a serious medical condition.
Income Protection (Income Support Cover):
Income Protection replaces up to 70% of your regular income if you cannot work due to illness or injury. This tiered benefit applies to the first $20,000 of income, with 70% covered, 50% for the next $20,000, and 20% for any additional income. After 24 months of receiving benefits, the coverage may reduce to 60%, depending on the selected policy options under Income Protection CORE policies. The monthly benefit allows you to cover essential expenses such as rent, mortgage, or bills, giving you the freedom to focus on your recovery.
Built in Benefits
- Total Disablement (Income Protection CORE): Pays a benefit if you meet the definition of Total Disablement. Payments commence after the Waiting Period and continue until the end of the Benefit Period as long as you remain Totally Disabled.
- Partial Disablement (Income Protection CORE): Pays a benefit if you meet the definition of Partial Disablement. Payments begin after the Waiting Period and continue until the end of the Benefit Period as long as you remain Partially Disabled.
- Total Disablement (Complimentary Income Protection CORE Extras): Pays a benefit outside of superannuation in specific circumstances when you do not meet the conditions for a Total Disablement benefit under your Income Protection CORE policy.
- Partial Disablement (Complimentary Income Protection CORE Extras): Pays a benefit outside of superannuation in specific circumstances when you do not meet the conditions for a Partial Disablement benefit under your Income Protection CORE policy.
- Recurrent Disablement: If your disablement reoccurs within 12 months, you will return to full pre-disablement income without having to serve another Waiting Period. This benefit applies if the disablement is related to the same or similar condition as the original claim.
- Needlestick Injury (Occupation Category M only): Pays a benefit if your earnings are reduced due to accidental infection with HIV, AIDS, or Hepatitis B/C as a result of a needlestick injury while performing your duties.
Optional Paid Benefits
- Claim Escalation Benefit: Increases your monthly benefit payments while you are on claim to keep pace with inflation, ensuring that your benefit remains aligned with the cost of living during the claim period.
- Retirement Protector Benefit: Protects your retirement savings by continuing to make superannuation contributions on your behalf if you are unable to work due to illness or injury.
AIA Vitality
AIA Vitality is a comprehensive health and wellness program offered alongside AIA life insurance policies. The program is designed to encourage healthier lifestyles by rewarding policyholders for making positive health choices, ultimately supporting their long-term well-being. These discounts, however, depend on continued participation in the program and are not guaranteed.
Members can earn points by engaging in various healthy activities, such as regular exercise, attending health check-ups, and improving their diet. The more points a member accumulates, the higher their AIA Vitality status becomes, unlocking additional rewards and benefits. Participation in AIA Vitality requires an annual membership fee, and while it can reduce insurance costs, the structure and rewards of the program may change over time.
Built in Benefits
- Premium Discounts: By engaging in healthy activities, AIA Vitality members can enjoy discounted premiums, providing financial savings over time.
- Cashback and Vouchers: Members can earn cashback and vouchers for everyday items like groceries and fitness gear, with rewards increasing as they reach higher status tiers.
- Fitness and Lifestyle Discounts: Enjoy discounted gym memberships, health club access, and savings on fitness trackers and sports apparel to stay active.
- Health Check-ups and Assessments: Members earn points for completing regular health assessments such as dental check-ups, eye exams, and vaccinations.
- Travel and Leisure Benefits: AIA Vitality members can also benefit from discounts on flights and hotels, rewarding them for maintaining their health while travelling.
- Mental Well-Being Support: The program offers tools and services to improve mental health, such as access to mental wellness resources.
- Long-Term Health Benefits: Beyond financial savings, AIA Vitality encourages members to make healthier choices, leading to improved physical fitness, better mental health, and a longer, healthier life.
How to Join AIA
The first step to joining AIA Life Insurance is to speak with a life insurance specialist. You can begin by filling in the above quote form. They will be able to guide you through the process, ensuring your questions are answered and take you through the application process.
To be eligible for AIA policies, you must be an Australian resident and meet the age requirements for your desired cover. For example, Life Cover and Total and Permanent Disability (TPD) Cover have specific age ranges, while Crisis Recovery and Income Protection also have their criteria.
The application process involves providing personal information such as age, health status, occupation, and other lifestyle factors. Depending on the type of policy you are applying for, you may need to undergo a medical assessment or provide further details about your lifestyle choices.Frequently Asked Questions and Answers.
Frequently Asked Questions and Answers
What types of life insurance cover does AIA offer?
AIA offers a range of cover options, including Life Cover, Total and Permanent Disablement (TPD), Crisis Recovery (Trauma) Cover, and Income Protection. These cover types are designed to provide financial protection in the event of death, serious illness, or permanent disability. These options can be customised with optional riders, such as TPD Buy-Back or Waiver of Premium, to better meet individual requirements and offer enhanced coverage.
How can I apply for AIA Life Insurance?
Applications for AIA Life Insurance must be made through an intermediary e.g.: life insurance specialist / broker or financial adviser.. You must provide personal details such as age, occupation, health status, and lifestyle factors. Depending on the cover you apply for, a medical assessment or additional documentation may be required to assess eligibility.
How does AIA Vitality help reduce my premiums?
AIA Vitality is a wellness program that rewards members for maintaining healthy habits, such as regular exercise and health check-ups. By earning points and increasing your AIA Vitality status, you can qualify for premium discounts. However, these discounts depend on continuous participation in the program, and inactivity could result in a reduction or withdrawal of the discount over time. Engaging in healthy activities not only improves your well-being but also reduces your life insurance costs.
How do I make a claim with AIA?
To claim with AIA, contact your financial adviser or AIA directly. The claims process typically involves submitting documentation such as medical reports, proof of loss, or other relevant evidence, depending on the nature of the claim. AIA has a strong reputation for its claims payout efficiency, and it aims to process claims as quickly as possible, ensuring that you receive the support you need during difficult times.
What happens if I can’t pay my premiums?
AIA offers a Premium and Cover Pause Benefit, which allows you to temporarily suspend your premiums and coverage for up to 12 months due to financial hardship or involuntary unemployment. During this time, no premiums are due, but no claims can be made. It’s important to note that this benefit may not be available for certain policies, such as those held within a Superannuation Plan. The benefit provides flexibility for individuals facing temporary financial difficulties, helping to retain their insurance policy without cancellation.