Income Protection CORE

• Stepped
• Optimum
• Level
  
  

STEPPED:

Your premiums payable will increase at each policy anniversary, based on the current premium rate applicable for your age. 

LEVEL:

Your premiums will be based on the current premium rate applicable for your age at the start of your policy, and will remain the same until the policy anniversary prior to your 65^th or 70^th birthday, at which time your premiums payable will convert to Stepped until the expiry of your policy. Level premiums are generally more expensive than Stepped in the early years, but become cheaper than Stepped in later years.

OPTIMUM:

Your premiums will be Stepped at the start of your policy and will automatically convert to Level at the policy anniversary where your Stepped premium amount would be greater than your equivalent Level premium amount. Optimum premiums give you the benefit of having a cheaper premium in the early years and then stabilising to level at a later date.

Once converted to Level your premium will remain Level until the policy anniversary prior to your 65^th birthday, at which time your premium payable will convert to Stepped until the expiry of your policy.

Optimum policies include a premium loading at commencement of the policy, through to the policy anniversary prior to your 65^th birthday or the expiry date of your benefit (whichever occurs earlier). 

Your Income Protection CORE policy can be set up in different ways, depending on how you would like to structure your insurance.

• Ordinary Policy:
  • Owned by you
  • Premiums are payable by you
  • In the event of an illness or injury, any claim is paid directly to you
• Superannuation Policy:
  • Owned by the trustee of a super fund – this option is available to you if you are a member of a SMSF, one of our platform partner super funds or if you apply to become a member of the AIA Insurance Superannuation Scheme No2 (an insurance-only fund set up to house your cover).
  • Premiums are payable from your superannuation fund. Options include paying from existing superannuation monies or making contributions to cover the premiums.
  • In the event of an illness or injury, any claim is paid via your super fund and is subject to superannuation law.
    
    

Ownership is something that should be carefully considered and discussed with a financial adviser. They will be able to explain any tax or estate planning implications for each ownership structure, as well as how legislation could impact how a claim is paid.

• Category A1, A2, M, A3, A4: $30,000 per month.
• Category B1, B2, C1, C2: $25,000 per month.
• Category D: $15,000 per month.
  
  

• 2 years – offering a flat 70% income replacement and Own Occupation definition for duration of your claim.
• 5 years – offering a flat 70% income replacement and Own Occupation definition for duration of your claim.
  
  

To Age 65, offering choice of;

• Flat 70% income replacement with an Own Occupation definition transitioning to Suited Occupation definition after 24 months on claim, or
• 70% income replacement tiering to 60% and Own Occupation definition transitioning to Suited Occupation definition after 24 months on claim.

• 30 days
• 60 days
• 90 days
• 2 years

Choose to have your claim payments increased each year while continuously on claim, in line with the Consumer Price Index (CPI). This can help ensure your payments continue to meet your financial needs should you be unfortunate enough to stay on claim long-term. 

Choose to have a monthly benefit paid to a nominated Superannuation Fund in addition to Total or Partial Disablement Benefits paid under your Income Protection CORE cover. This can help you to replace or complement any previous retirement planning that has been compromised by you being unable to work due to illness or injury.