AIA Life Insurance: Compare and Save
Before you purchase a life insurance policy, it’s important to compare your options. AIA life insurance is one of the largest insurers in Australia. Review their policies, features and benefits to find the right option for you.
Published November 11, 2022
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- AIA Life Insurance: Compare and Save
- Types of Cover from this insurer
- About AIA Insurance
- Financial ratings and customer satisfaction
- AIA has acquired CommInsure
- Priority Protection Reviewed
- Pros and Cons of AIA life insurance
- Policy options
- General Features and Benefits
- AIA Vitality
- How to lodge an AIA claim
AIA Life Insurance: Compare and Save
With the backing of the long-established AIA Group, one of the largest specialist pan-Asian life insurers, AIA Australia has a strong presence in the life insurance industry. The insurer is always looking for innovative new ways to improve its claims process and regularly updates its products. However, it’s typically still a good idea to compare them to other major insurers to ensure you get the coverage that suits your requirements.
AIA Life Insurance at a glance
AIA Australia is a leading life insurance specialist with over 50 years of experience. The company is focused on life, health and well-being. Offering their Vitality program to policy owners as a rewards incentive for making healthy choices. They offer their members several options when it comes to life insurance, including death cover, trauma insurance, income protection and TPD cover.
Types of Cover from this insurer
- Life Cover: If you are to pass away or be diagnosed with a Terminal Illness, a lump sum is paid to help alleviate the stress of outstanding debts and other financial obligations.
- Total and Permanent Disablement (TPD) Cover: TPD cover is an insurance policy that will typically pay you a benefit if you become ill or injured and can no longer work. Generally, a lump-sum benefit is paid to help cover your expenses and the potential loss of future earnings incurred as a result of your permanent disability.
- Income protection: Income Protection pays you a monthly income of up to 70% of your pre-disablement earnings if you cannot work because of an illness or injury. Generally, you can use this extra money to help cover the costs of your mortgage, medical treatment, and other day-to-day expenses.
- Crisis Recovery: A policy of this type will typically cover you financially if you suffer a critical illness as defined in your PDS, like a Stroke, Heart Attack, or Cancer diagnosis.
- Business expenses: If you cannot work, your business will still receive a monthly payment to help cover essential fixed expenses if you own this policy.
About AIA Insurance
AIA Australia is one company under the AIA Group, the largest specialist publicly listed pan-Asian life insurance group. The AIA Group has a presence in 18 markets across Asia-Pacific, providing top-quality life insurance services. AIA Australia has 50 years of Specialist life insurance experience and offers a range of products to protect and improve the lives of more than 3.8 million Australians.
In addition to offering a wide variety of life insurance products, they also provide members with the option to join the AIA Vitality program. AIA Vitality is a personalised program that helps you make healthier choices based on scientific research. The rewards program not only tells you how healthy you are but also provides the means to improve your health and offers a selection of incentives to keep you invested in bettering yourself. Some benefits of this program include a healthier lifestyle, more affordable everyday expenses and discounts on life insurance premiums.
Financial ratings and customer satisfaction
According to the Plan For Life Actuaries & Researchers report in August 2022, AIA life insurance is the second largest insurer in Australia, with an 18.3% market share. In 2021, the insurer paid an average of $40 million per week in claims across their Retail, Group and Direct insurance policies- totalling over $2.1 billion.
AIA has consistently proven its financial strength and stability. However, it is still a good idea to compare life insurers even if the insurer you’re interested in has a good market share because different insurers offer different levels of coverage, have different policy features and exclusions. Finding an insurer that meets your specific needs and budget is important.
AIA has acquired CommInsure
On 1 April 2021, CommInsure’s life insurance business, including The Colonial Mutual Life Assurance Society Ltd (CMLA), was transferred to AIA Australia (AIAA). As a result, CommInsure and AIA Australia now operate as one entity.
From 31 March 2020, CommInsure Protection products were removed from the market. However, current CommInsure Protection policies will typically remain as they are. Customers with older CommInsure policies will generally still be able to contact AIA for increases, decreases, changes to beneficiaries or policy ownership.
Priority Protection Reviewed
AIA offers a range of life insurance products, including term life insurance, income protection insurance, and TPD cover, to name a few. We reviewed the Product Disclosure Statement version 27, prepared in August 2022, to explore the products and features available.
Pros and Cons of AIA life insurance
Advantages
- 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 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. 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 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. Minimum premiums apply
- Wide range of rider benefits: You can add riders to your policy for an additional cost, providing extra protection and benefits. For example, you could add the double crisis recovery or family protection benefit to your policy.
Disadvantages
- Benefits: There are some additional benefits that this insurer does not provide.
- Exclusions: Certain exclusions may prevent you from making a claim.
Is AIA the best life insurer?
The best insurer for you is typically one which offers you the features and benefits which meet your requirements and budget. AIA is a large and well-known life insurer in Australia, with a wide range of products available. It’s generally a good idea to compare life insurance policies before you decide on the best life insurer for you.
Policy options
Comparing life insurance policies is important to ensure you get the best coverage for your needs. This insurer offers a range of cover options, including life insurance, trauma insurance, income protection, crisis recovery and business expenses insurance.
Life Cover
A death benefit typically 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 help your loved ones 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.
Plans available: Life cover, Accidental death, Term Cover.
Minimum Cover: No minimum amount
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
With this type of cover, a lump sum benefit 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. You can use the payout to adapt to your new lifestyle, for example, making modifications in your home or helping you pay the bills so you can continue to support your family.
Entry Age: Generally between the ages of 15 and 63, depending on your premium type.
Expiry Age: Your policy might end at age 55, 65 or on your 70th birthday, depending on your occupation.
Plans available: TPD, Accidental TPD or Universal TPD.
Definitions available: own occupation, any occupation, or home duties definitions.
Minimum Cover: No minimum amount.
Maximum Cover: Generally, $5 million when purchased as a stand-alone policy. However, your occupation could influence your sum insured limits.
Income Protection
Income protection insurance typically provides you with a monthly benefit if you cannot work for longer than your waiting period due to sickness or injury. You can use these monthly benefits 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.
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). You could use your benefit to make loan repayments and 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.
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: 15 to 59 years old.
Expiry Age: Generally, your business expenses policy expires on your policy anniversary before your 65th birthday.
Maximum cover: $15,000 to $90,000 per month, depending on your occupational benefit.
General Features and Benefits
- Terminal illness benefit: Your life insurance policy will generally pay out your lump sum benefit when 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 coverage amount without having to provide proof of insurability again.
- 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. It’s also important to note that you’ll need to be at least 35 years old and paying for a stepped premium policy.
- Final expenses: When you pass away, the insurer will generally make an advance payment to your family members to help cover the funeral cost.
- 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.
- Accommodation benefit: If the insurer pays out the Death or Terminal Illness Sum Insured, they will also cover up to $250 per day of accommodation costs for your immediate family members racked up while you’re staying in a hospital bed more than 100 km away from home. This reimbursement ends after 30 days.
- 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.
AIA Vitality
AIA Vitality is a science-backed health and wellness program that offers discounts to eligible AIA clients who actively work toward knowing and improving their health. The program further inspires healthier living by giving members points when reaching and logging milestones, for example walking 12, 500 steps.
Benefits of AIA Vitality include:
- Discounted flights with Virgin Australia
- Spa vouchers
- Discounts on your gym membership with select providers like Anytime Fitness, Fitness First and Virgin Active
- Fitness tracking devices available for purchase at a discounted rate
- Movie vouchers
- Shopping vouchers from rewards providers like Meyer, Woolworths, Uber and Ticketmaster
How to apply for an AIA insurance policy
You can apply for a Priority Protection policy through a comparison site, like ours, or through a financial adviser. You’ll generally need to complete an application form when applying for a policy. 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.
How to lodge an AIA claim
- Contact your insurer as soon as possible to let them know you want to claim. You can contact them directly via phone or use the self-service portal on their website; alternatively, you can email them.
- 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 is AIA owned by?
AIA Australia is a subsidiary of the AIA Group, the largest independent publicly listed pan-Asian life insurance group. With policyholders in 18 markets across the Asia-Pacific region, they’re generally committed to providing world-class service in the life insurance market. -
What does AIA stand for in insurance?
AIA stands for American International Assurance when it was part of AIG. In 2008, the company was renamed AIA. AIA is a leading life insurance company which offers a range of life insurance products, including death cover, income protection and TPD insurance. -
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 your chosen policy 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 stay the same because of your age. -
How do I check my AIA policy?
You’ll typically need to log in to your MY AIA account and click on My Statements & Letters to check your policy. Then you’ll be able to navigate to the View Statement page, where you can click on Policy Statements. Once you’ve selected the Name and Year of the premium/contribution statement, you’ll be able to view your statement. -
Does AIA own CommInsure?
Yes, AIA Australia Limited owns CommInsure, which was transferred to the group on 1 April 2021. AIA Australia bought CommInsure Life to enhance its competitive advantage in the Australian market to modernise life insurance in Australia and provide customers with more benefits.
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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.
I have a 78 year old friend who took out a life insurance policy in 1974 for 20,000 i rang AIA and as he cant afford the premiums was told he will get nothing over the years he has paid far more than his 20,000 is this fair what can i do to help him
Hi Vicki,
I can understand how frustrating and concerning this situation must be for both you and your friend. I would suggest you call the provider to check whether the policy had a cash value component, if it did not then it may be a good idea to shop around and compare your options. Ask for a copy of your PDS for further clarity. Perhaps there are other life insurance policies available that are more affordable or have better terms. You could also help him review his overall financial situation to see if there are any other ways he can reduce his expenses or increase his income to make the premium payments more manageable.