AIA Life Insurance
AIA Australia is the second-largest life insurance company, with a 15.6% market share, and offers protection to over 3.7 million Australians. The company offers several life insurance products, including Life Cover, Total and Permanent Disablement (TPD), Crisis Recovery Insurance and Income Protection.
Published March 5, 2020
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Our viewpoint: Is AIA the right choice for you?
AIA Life Insurance is backed by AIA Group Limited, one of the largest life insurance groups in the world. With the support of the Group, AIA Australia offers a variety of insurance options to meet your requirements. When you have a Priority Protection policy from AIA, you can include the world-renowned wellness programme, AIA Vitality.
What makes this life insurance company different is their passion for keeping up with the latest technological advancements. The insurer actively seeks new and innovative ways to improve its claims process, while regularly updating their products.
However, there are a variety of insurers out there, so you might want to compare prices, benefits and features before deciding which company is the right choice for you.
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AIA Vitality
Get rewarded for knowing and improving your health with AIA’s science-backed health and wellness program.
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3.7 Million
AIA Australia has over 3.7 million customers and more than 45 years’ experience as a life insurance specialist.
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$1.4 Billion
In 2019 AIA had a claims acceptance rate of 97.6% for life insurance** and in 2018, paid out over $1.4 billion.
About AIA
AIA Australia is backed by the Hong Kong-based AIA Group Limited (AIG). The AIA Group is the largest Hong Kong-headquartered company on the Hong Kong stock exchange and has a presence in over 18 markets around the world.
AIA Insurance Australia was launched in 1972 and has over 45 years’ experience empowering more than 3.7 million Australians to live longer, healthier lives.
Financial strength
Generally, financial ratings are a good indicator of an insurance provider’s financial ability to payout claims today and in the future.
According to the Standard & Poor’s Financial Strength (January 2020), AIA scored an A+ rating. An ‘A’ rating means that AIA Australia is a financially strong and stable life insurance company. Although, it also suggests that the company might be more likely to be affected by changes in circumstances and economic conditions, compared to those with higher ratings.
However, AIA is registered under section 21 of the Life insurance Act 1995 and supervised by The Australian Prudential Regulation Authority (APRA), which ensures that life insurance companies manage their financial risks cautiously. Thus, minimising the likelihood that policyholders will suffer a loss should the insurer run into financial difficulty.
AIA Priority Protection policy options
There are several different insurance options for you to choose from. However, the type of AIA insurance policy you apply for should generally depend on your individual requirements. For example, your health, lifestyle, occupation, family dynamic, and budget.
Life Cover
A death benefit pays a lump sum amount to your beneficiaries when you pass away or get diagnosed with a terminal illness. This benefit provides your family with financial support and can be used to help your loved ones to meet financial obligations or settle any outstanding debts.
Entry age: Between 10 and 74 years old, depending on your choice of premium structure.
Expiry age: Your policy ends when you pass away or on your policy anniversary before turning 100.
Maximum cover: No limit, except for the occupation of Home Duties. For Home Duties, the maximum life cover is $2 million.
Total and Permanent Disablement (TPD) Insurance
A once-off amount is paid to you when you’re totally and permanently disabled and unable to work in your Own or Any occupation, due to a severe injury or sickness. The payout can be used to adapt to your new lifestyle, for example, making modifications in your home or help you pay the bills so you can continue to support your family.
Entry age: Generally, between the ages of 16 and 63, depending on your occupation.
Expiry age: Your policy might end at age 55, 65 or on your 70th birthday, depending on your occupation.
Maximum cover: Generally, $5 million when purchased as a stand-alone policy. However, your occupation could influence your sum insured limits.
Crisis Recovery
Also known as Trauma insurance, this policy type pays you a lump sum benefit should you suffer one of the critical illnesses listed in your product disclosure statement (PDS). Your benefit could be used to make loan repayments, pay your mortgage and medical expenses.
Entry age: Aged between 15 and 63.
Expiry age: Your policy will generally expire on your policy anniversary before your 70th birthday.
Maximum cover: Your sum insured will be limited to $2 million. However, a maximum limit of $1 million applies for the occupational category of Home Duties.
Income Protection
Income protection insurance provides you with a monthly benefit should you be unable to work for longer than your waiting period, due to sickness or injury. These monthly benefits can be used to pay your bills, medical treatments and other unexpected expenses.
Entry age: Between the ages of 15 and 59 years old. However, it depends on your occupational category.
Expiry age: Age 55, 65 or 70th birthday depending on your occupation.
Maximum cover: $10,000 to $60,000, depending on your occupation and benefit period.
Business Expenses
Your business receives a monthly payment that covers fixed business expenses, for example, utilities and rent, should you be unable to work because of an illness or injury.
Entry age: Minimum entry age is 15, and the maximum entry age is 59.
Expiry age: Generally, your business expenses policy expires on your policy anniversary before your 65th birthday.
Maximum cover: $15,000 to $60,000 depending on your occupational benefit.
Does the company provide value for money insurance?
Whether AIA will offer you value for money depends on your specific requirements. Generally, you may want to choose an insurer that can provide you with the level of cover you want at a price you can afford. To find a policy that meets your requirements and budget, compare quotes from a variety of major life insurance brands.
AIA Priority Protection – Pros
There are several advantages when choosing AIA as your life insurance company, including:
- Worldwide cover: Your cover is valid across the globe, so you can leave the country knowing you’ll be protected.
- 24/7 cover: Protection 24 hours a day, 7 days a week.
- Payment frequency options: You can choose whether you would like to make premium payments yearly, half-yearly or monthly. Take note: you might receive a discount when paying your premiums annually.
- Premium discounts: AIA insurance Australia offers you several ways to save on your premiums, including an initial selection discount, bundled discounts, AIA Vitality membership discounts, large sum insured discounts and health and life discounts. Be sure to review the PDS for details on your eligibility for these discounts.
- Cooling off period: You can cancel your policy within 28 days of acceptance and get a full refund on all the premiums paid, provided that no claims have been made.
- Access to AIA Vitality: You can join their health and wellness rewards program, which helps you improve your health while earning discounts and rewards, for example, free shopping vouchers and discounts on Virgin Australia flights.
AIA Life Insurance – Cons
When applying for a life insurance policy from AIA, it’s important to note that there are specific exclusions on your policy. For instance, no life insurance benefit will be paid when death is due to suicide within the first 13 months after your policy commencement date.
The overall customer experiences
According to Roy Morgan Single Source, AIA Australia earned an overall customer satisfaction rating of 63.7% between July of 2018 and July of 2019, which is low compared to other big life insurance companies in Australia.
A further indication of a company’s customer satisfaction is how they deal with claims. As per the statistics from APRA (November 2019), AIA claims acceptance rate for death cover purchased through a financial adviser was 97.6%, and it took an average of two months for the insurer to reach a decision. In 2018 AIA Australia paid out over $1.4 billion in claims.
You might also want to read some of the AIA reviews submitted by customers, to find out how clients have experienced the company’s service.
What are some of the general features offered by AIA policies?
- Terminal illness benefit: Your life insurance policy will generally pay out your lump sum benefit when you’re diagnosed with a terminal illness.
- Interim accidental death cover: Should you pass away because of an accident while your application is being assessed, you’ll generally receive a lump sum payment. This benefit is available for the first 90 days after you submit your application.
- Guaranteed future insurability: This benefit allows you to increase your life insurance cover amount without having to again provide proof of insurability.
- Premium freeze: You can freeze your premiums, meaning you’ll pay the same price as the previous year. However, your sum insured amount will decrease each year if you choose this option.
- Final expenses: When you pass away, the insurer will generally make an advance payment to your family members to help cover the cost of your funeral.
- Financial planning reimbursement: If you pay for financial planning advice in the first 12 months of a claim being paid, the insurer will usually reimburse up to $3,000 of the costs involved.
- Complimentary family final expenses: Should your child be diagnosed with a terminal illness or pass away, the company will generally provide you with a lump sum payment, up to $20,000 or 10% of your insured amount.
- Benefit indexation: Each year, your insured amount will automatically increase by 5% and by the higher CPI increase to ensure your policy keeps up with inflation.
Take note: These are the general built-in benefits you can expect from an AIA life insurance policy held outside of your superannuation. You can add optional benefits at an additional cost.
How to apply for an AIA life insurance policy
You can apply for a Priority Protection policy through a comparison site, like ours, or through a financial adviser.
When applying for a policy, you’ll generally need to complete an application form. These forms contain important questions regarding your health and personal details. Your completed forms are then sent to the insurer for underwriting. It’s important to note that your eligibility will depend on the specific insurance policy you’re applying for and the information you provided at application time.
If your policy is accepted, you can make payments using your American Express card, Visa Card, Diners Card, or MasterCard. You can also make payments via Direct Debit.
How to lodge an AIA claim
- Contact your insurer as soon as possible to let them know that you would like to claim. You can contact them directly via phone or use the self-service portal on their website; alternatively, you can send them an email.
- Ask to have the required claim forms sent to you and find out which supporting documents you need to provide.
- Fill out all the paperwork and return it to the insurer.
- AIA might request that you be examined by a medical practitioner, after which you will have to send them the additional documents.
Frequently asked questions and answers
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Who owns AIA insurance?
AIA Australia is wholly owned by the Hong Kong-based AIA Group Limited (AIG). Currently, the largest independent, publicly listed pan-Asia Life Insurer. -
What does AIA insurance stand for?
AIA stands for American International Assurance when it was part of AIG. In 2008, they were renamed AIA. -
Why did AIA buy CommInsure?
AIA Australia bought CommInsure Life to further enhance its competitive advantage in the Australian market with the goal to modernise life insurance in Australia and provide customers with more benefits. -
Does AIA have any rewards programs included with its cover?
Yes, AIA customers can add AIA Vitality to their insurance policy for only $11.50 per month. This health and wellness program helps you improve your health and well-being by rewarding you with discounts and benefits when reaching a certain status level: Bronze, Silver, Gold or Platinum. -
What are some of the key exclusions of AIA life insurance?
When you apply for cover from AIA, a life insurance benefit will not be paid if death was due to suicide during the first 13 months after the commencement date of your policy. For a TPD and Income Protection policy, you generally won’t be covered if your disablement is self-inflicted or occurred as a result of criminal involvement. Please carefully review the PDS for a full list of all exclusions and limitations. -
What premium types are available on AIA policies?
This insurer generally provides you with the choice of stepped, level, term level and optimum premiums, depending on the policy you choose and whether it’s taken inside or outside of Super.
Stepped premiums generally start more affordable but increase each year as you age. Level premiums usually start more expensive but do not increase because of your age. Optimum premiums, also known as hybrid premiums, is a combination of stepped and level premiums, where your premiums start as stepped but are converted to level premiums once your premiums have become more than the prescribed level premium for your age.
With a term level premium, what you pay is calculated according to your age and the initial period of your life insurance policy, for example, 5, 10 or 15 years.
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Are your AIA life insurance premiums tax-deductible?
Life insurance premiums are generally tax-deductible to your super fund if the life insurance policy is paid for by the fund. However, if the policy is held in your personal name, outside of superannuation, premiums generally won’t be tax-deductible. -
Will your AIA life insurance premiums increase as you age?
Generally, this depends on the premium structure you have. If you have a stepped style, then yes, your premiums will increase as you age. It is also important to note that premiums automatically increase every year due to the benefit indexation benefit. However, you can usually request this to be removed should you want to. -
Do you need a medical check-up to apply for AIA life insurance?
Generally, you won’t be required to go for a medical check-up, unless you are applying for high levels of cover, or have an existing medical conditions for which the insurer needs recent test results, as part of their underwriting assessment. -
How do you change your level of cover?
If you would like to change your level of cover, you can contact the AIA customer service department and request the change to your policy. If you’ve taken your policy through us, please call 1300 135 205, and a specialist will assist you with upgrading or downgrading your level of cover. -
Can you get an AIA life insurance plan if you have a pre-existing condition?
Generally, getting life insurance when you have a pre-existing condition depends on your specific condition, when it was diagnosed, the prognosis, as well as your overall health. The insurer will also consider your age, gender and the type and level of cover requested.
Make sure to fully disclose all particulars of your condition when applying for the policy. You might want first to request a pre-assessment to find out how an insurer might review your application.
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I have a Superannuation fund. I am no longer employed. Does my wife still receive my policy payout if I die? I read in the newspapers that if you have a superannuation policy and no longer work you do not receive the insurance payout?
Great question Reg, I presume that you are referring to an Industry Type Superannuation Fund that has a Life Insurance component automatically provided to it’s members and if this is the case it is definitely possible that your Insurance will not pay your beneficiary if you are no longer working as depending on your Fund, there may be policy conditions that stipulate this. You will have to check with your administrator of your Superannuation Fund around this or with your previous Employer. These funds will often have expiry ages on the Life Insurance component of often 65 or 70 years of age also because there is zero to very little medical underwriting on these policies and these are often provided at a low cost to the members due to the volume of employees within the fund. If we can help you at all with your Life Insurance needs please call us on 1300 135 205 as we compare up to 12 x Life Insurance Providers in the market.
What is your Member Fax number for medical documentation?
Hi Bree
As AIA has different fax numbers for the claims department and for applications. I suggest you contact the number above and ask for the most appropriate fax number for your circumstance.
Do you have any life policies that will provide guaranteed life cover for a 65 year old without having to disclose your Medical History (A smoker with emphysema)?
Hi Annea
Thank you for your question, currently we have elected to only provide life insurance policies that are fully underwritten (generally fully underwritten policies are easier to claim on, provide more affordable premiums, however the applicant needs to complete a full questionnaire about their medical history, which the insurer will review to see if it fits within their guidelines before they will offer you any cover).
However we understand this doesn’t meet everyone’s requirements, therefore we have 2 funeral insurance policies that provide guaranteed acceptance cover so long as you are an Australian Resident and meet their entry age requirements of between 18 – 70. They cover Accidental death’s only for the first 12 months, then any type of death following this period and will cover you for up to $15,000. If you would like to know more about these options please contact us on 1300 135 205.
To whom this may concern,
I’d like to inquire about if you provide income protection insurance in relation to self employed people.
I am starting work at the end of April. My client already has public liability insurance on her rural property.
The work will be horticultural,gardening, mulching etc. including some tractor work. If you need specifics on the type of machinery I use I can provide details. There will also be some chainsaw work. If you can give me a quote or refer me to another local provider that would be appreciated. The work will also be only 2-3 days per week and for 6-8 weeks only, or longer depending on more work, or other suitable employment becomes available.
Hope to hear from you soon,
Kind Regards,
Damian Slibar.
Hi Damien
Yes we do specialise in assisting self employed persons find income protection and we currently have access to 11 insurers. However when I read your client’s situation it looks challenging for these reasons: Firstly the polices we have available are only available to permanent staff, these can be permanent part time (minimum 20 hours / week) or full time. Secondly is the short duration of work of only 6-8 weeks, here again our providers look at 6 – 12 months minimum. Lastly is their occupation, as they have a very diverse role, generally here they would want to see consistency, training and or experience to understand what occupation rating would be appropriate and if they would insure such an occupation.
While I think it may be difficult for your client to get cover through us, I would still suggest your client reach out to one of our specialists and ask them to conduct a no obiligation pre-assessment for him / her to be certain as to what income protection cover is possible.
My daughter currently is an AIA life insurer (Gold Scholar). From my experience told me this AIA Company is not a good company in the world. As my daughter’s life insurer policy’s mature date is near the finish on early next month, and she received the letter which informed her maturity payment amount about $11700. However, according to the original (the initial year 2004) benefit illustration for basic policy contract that was showing $ 21051 for total maturity payment. Therefore, there are near $10000 shortage difference between the initial contract showing amount and final maturity payment. Who can tell me what reason that AIA can do whatever they want and ignoring their initial promise to the customer? I can send the detail to you if someone could help me to answer this matter.
Hi.
If your daughter is a Life Insurance Direct client and purchased her AIA policy through us, our specialists can help assist her. Please give us a call on 1300 135 205.
However, if she purchased her policy directly or through another broker, it’s best to contact AIA directly on 1800 333 613.