AIA Life Insurance

AIA Insurance

AIA is a provider of a range of personal and business insurance products, such as life cover, total and permanent disability cover and cover for business expenses. AIA life insurance can only be purchased through a financial adviser.

Although Canstar does not provide ratings for AIA life insurance products, we have outlined some key product info below.

What life insurance policies does AIA offer? 

AIA offers a number of products that fall under the life insurance umbrella including:

  • Life Cover: Provides your beneficiaries with a lump sum payment if you pass away.
  • Total and Permanent Disablement Cover (TPD): Provides a lump sum payment if you are no longer able to work due to an injury or illness.
  • Income Protection: Can provide a monthly income if you are unable to work due to illness or injury.

AIA Life Cover can also be included in your superannuation, either through a Self Managed Superannuation Fund (SMSF) or an AIA Insurance Super Scheme No2.

Compare Direct Life Insurance

What features does AIA life insurance offer?

Some features of an AIA Life Cover policy are:

  • A death benefit: This provides your beneficiaries with a lump sum payment if you pass away.
  • Terminal illness cover: This provides your beneficiaries with a lump sum payment if you are diagnosed with a terminal illness.
  • Financial planning reimbursement: Financial advice costing up to $3,000 may be reimbursed to assist with managing or investing the benefits from your claim.
  • Premium freeze: Allows you to maintain the cost of your premium each year by reducing the amount that you are covered for.
  • Complimentary family final expenses: This provides a lump sum payment of up to $20,000 in the event that one of your dependant children is diagnosed with a terminal illness or passes away.
  • Guaranteed future insurability: Ability to increase the amount that you are covered for at any time without having to provide further health evidence.
  • Final expenses: Policy provides up to $25,000 or 10% of the insured amount for immediate expenses if you pass away.
  • Optional extras: Additional cover options may be added to your life insurance policy, such as cover for total and permanent disability (TPD) and a crisis recovery benefit.

How to apply for an AIA life insurance policy

All AIA life insurance policies are sold through financial advisers who hold an Australian Financial Services Licence (AFSL). According to the AIA website, your financial adviser will provide you with a quotation for your policy, which should include any benefits and extras you choose, and will help you through the application process.

Eligibility to apply for AIA life insurance

According to AIA, Australian citizens and Australian permanent residents between the ages of 11-75 may apply for an AIA Life Insurance policy.

Upon application, you may also be asked some simple questions about your health, lifestyle and family medical history to determine what level of cover AIA is willing to offer to you and how much it could cost you. 

If you choose to have your life insurance built in to your superannuation, you need to be a member of an approved superannuation fund, be a member of a self-managed super fund (SMSF), or be a member of the AIA Insurance Superannuation Scheme No.2.

Considering taking out life insurance? While we don’t compare advised life insurance policies or life insurance taken out through super funds, we do compare direct life insurance policies. 

Compare Direct Life Insurance

AIA Life Insurance FAQs

AIA says that the cost of its life insurance policy premiums depend on factors including:

  • Your age and gender
  • Your occupation 
  • Your state of health, including whether or not you smoke
  • Your level of cover and the optional benefits you choose 

At the time of writing, AIA says the minimum premium is $300 per year for an AIA life insurance policy.

Generally speaking, premiums for forms of life insurance such as term life insurance, TPD insurance or trauma insurance may not be tax deductible, according to the Australian Taxation Office (ATO). Ask your tax accountant or financial adviser for more details on this. 

The ATO however, states that you can claim the cost of premiums you pay that cover the loss of your income, such as income protection insurance. You can’t, however, claim a deduction for premiums that compensate you for physical injury or are taken out through your super fund. Ask your tax accountant or financial adviser for more details on this.

At the time of writing, AIA requires written notice of a claim as soon as possible. Once notified, AIA will provide the relevant forms and documents so that a claim can be lodged.

Before you submit a claim, you may need to have certain details on hand, such as:

  • Your policy information
  • Information about the incident, if applicable (date, time, place)
  • Original birth and death certificates if the claim relates to somebody’s death
  • Medical reports, test/examination/laboratory results, if applicable

If your insurance claim is approved, AIA will arrange the payment of your benefit to your nominated beneficiary.

AIA charges stepped premiums, which increase as you age and is recalculated each year. They also offer a level premium option which means that your premium rate remains the same from the start of your policy until the policy anniversary prior to your 65th or 70th anniversary.

When you apply for AIA life insurance, your insurance premium is calculated based on your chosen benefits and level of cover, your age, your occupation, your gender, whether you smoke, your health, family history and whether you engage in hazardous activities.

At the time of writing, medical tests are not required to apply for AIA life insurance; however, in the event of a claim, AIA may require additional evidence or do a full review of your medical records.

After buying an AIA life insurance policy, you can apply to increase the amount of your cover at any time. Your application to increase your cover will be subject to an eligibility criteria and must fall within the benefit indexation increase for that year.

The AIA guaranteed future insurability function allows you to increase your sum insured for significant life events without further evidence of your health or insurability before the age of 55.

Keep in mind that increasing your level of cover or adding your spouse or children to your policy is likely to result in you having to pay a higher insurance premium.

It depends on the condition and policy you decide to take out. When applying for AIA life insurance, you must disclose any pre-existing medical conditions you have now or had in the past, as well as current medications and health issues. 

If a pre-existing medical condition is not disclosed, your policy will not provide cover for claims made in relation to the condition.

AIA is an independent life insurance provider that has been operating for over 45 years and currently has over four million customers in Australia. AIA is backed by AIA Group Limited, which it says is the largest publicly listed pan-Asian life insurance group.

Written by: Eliza Parry-Okeden | Last updated: November 18, 2019