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AIA Product Changes - Summary

Pricing Changes

The most interesting change in the overall package is a new discount structure. An old discount structure mainly focused on income protection and mortgage protection benefits has been removed and a new variable discount structure of up to 12.5% has been implemented covering life plus Trauma, Income Protection, Health, and TPD. This probably provides more incentive to broaden the cover base for a client across a range of covers, and offers at least some discount to those that choose not to take Income Protection, which is a substantial majority, sadly. 

Other pricing news

  • the policy fee (on which no commissionis paid) has been increased from $6.95 to $7.95. 
  • the base rate table for Income Protection mortgage cover has changed

We will review the full impact of the pricing changes in the premium comparison tool for insurers. The pricing will be live on the 12th of October on Quotemonster.

Product Changes

New Product Names

AIA will be renaming product set to REAL before each product name. e.g. REAL Life Cover, REAL Trauma Cover. The Product naming will be launched 30 September and rolled out over time

New Health Product: REAL Health

  • AIA is launching a new Health Product called REAL Health
  • Premiums are calculated on a Yearly Renewable Term based on Age, Gender and Smoker status. 
  • Individual premiums apply for each Life Assured, including for each child. A dependent Child will become subject to adult Premium rates on the next Policy anniversary date after they each age twenty one (21).

Pre-launch and Enhancement of Product: Loss of Earnings Premier

  • ‘Premier Income Protection’ is being re-launched as ‘REAL Loss of Earnings Premier’
  • Product has been enhanced:
  • Enhanced pre and post disability income wordings
  • Added Optional Involuntary Redundancy benefit

Total and Permanent Disability Cover Personal

  • New to age 70 option
  • Quote either to age 65 or to age 70
  • from age 66 – 70 definition based on activities of daily living
  • New Special Events Increase option for Residential investment properties

Total and Permanent Disability Cover - Business

  • New to age 70 option
  • Quote either to age 65 or to age 70
  • from age 66– 70 definition based on activities of daily living

Life Cover – Level 15/80

  • Allow accelerated Trauma & TPD with Level 15/80 Life Cover.

Mortgage, Income and Rent Cover

  • Optional CPI added to all options
  • Mortgage
  • Income 
  • Rent

Income Protection

  • AV, Indemnity, LOE Premier • Optional involuntary redundancy benefit for IP AV, Indemnity, LOE Premier – New benefit
  • 6mth benefit period
  • 6mth stand down period from Policy Commencement Date
  • Payable after 30 days of unemployment 
  • $2,500 or your sum assured whichever the lesser

Trauma - Personal

  • New inbuilt children’s trauma benefit
  • 20% of Life assureds Sum Insured up to $50,000 whichever is the lesser.
  • Keep current optional benefit - $75,000 / flat fee
  • Change ‘Optional’ to ‘Top Up’
  • If top up benefit selected $75k is in addition to the in-built portion - maximum benefit of $125,000.
  • Added conversion option for children turning 21

All the product changes are being rated and will be reflected in AIA product ratings from 12 October. 

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