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.

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.

We make it easy for you to compare policies online with our powerful comparison engine.

Buy with confidence today for peace of mind tomorrow.

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:

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

  • 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.

  • 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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