August 7, 2017
AIA Australia has introduced a large sum insured discount and reduced premiums on some policies for new business written under its Priority Protection and Priority Protection for Platform Investors (PPPI) products.
As part of the changes, the insurer will introduce a 26% Large Sum Insured Discount for clients Life Cover and Term Cover between $750,000 and $1 million while cover between $500,000 and $749,999 will retain a 20% discount and sums over $1 million will retain a 30% discount.
Changes will also occur with stepped premiums with Life Cover stepped premiums decreasing by an average of 5-6% (for non-smoking policyholders between 35 and 65 years of age).
Crisis Recovery standalone stepped premiums will increase by an average of 4-5% for policy holders over 35 at next birthday and by an average of 9% for those 35 and under at next birthday. Crisis Recovery rider stepped premiums will also increase by an average of 5% for policy holders over 35 at next birthday.
Life Cover and Crisis Recovery policies with level premiums will also increase by up to 9% for policy holders under 40 and by up to 5% for policy holders between 40 and 50 with no changes for policy holders over 50 at next birthday.
AIA Australia Chief Retail Insurance Officer, Pina Sciarrone said the insurer was aware that Life Cover was a key element of most of its Priority Protection policies and the changes were made to maintain sustainable options for advisers and clients and to ensure they were competitive in the market.