There was strong reader interest this week in the news that AIA has announced updates to its Priority Protection range, effective immediately…
AIA has announced product updates to its Priority Protection range, effective 15 October 2023. Key changes across pricing and product include:
Pricing Updates
- Level premium guarantee: introduction of a 5-year premium guarantee for level premiums for all lump sum benefits and IP CORE to Age 65 Benefit Period. Previously the 5-year premium rate guarantee only applied to IP CORE with 5-year and 2-year Benefit Periods.
- More competitive rates: for new business TPD rider premiums for females aged 45-60
- Policy fees: an increase to policy fees across all payment frequencies, which was indexed as per existing policy terms effective 1 October 2023
- Change in premium type: Accidental Death and Accidental TPD premium changed from level to stepped
- Discounts & Vitality: Policy wording enhanced to make clear how discount terms and AIA Vitality discounts work
Updates for Life Cover Plan, Superannuation Life Cover Plan and Crisis Recovery Stand Alone Plan
- Crisis Extension: updated medical definitions for Advanced Invasive Cancer, which now includes cover for blood cancers that require stem cell transplant for treatment
- Accidental Death and TPD: increase of sum insured limit to $2million for Accidental Death cover. For Accidental TPD (Home Duties occupation category) sum insured limits aligned to $1 million.
- Clearer definitions: for Benefit Indexation, Accommodation and Counselling benefit and for payment of Crisis Reinstatement option premiums
- Accidental TPD Rider: wording made clearer that cover does not convert to loss of independence for Accidental TPD Rider cover, nor for those in the Home Duties occupation category
Income Protection Core
- Premium Freeze: Added Premium Freeze benefit into the IP CORE Built-in summary tables as this benefit is available for IP CORE as a built-in benefit
- Retirement Optimiser: Made the policy wording more generic to confirm that clients can insure up to the current Employer Statutory Contribution rate
…increases to auto medical underwriting limits
More details on these and other changes, which also include increases to auto medical underwriting limits, can be accessed in this Enhancements Summary released by AIA Australia.
Click here or on the image below to access AIA Australia’s updated 15 October 2023 Priority Protection PDS.
