Income Protection

Making the most of your income protection

Complimentary Interim Accidental Death and Income Protection Cover
While your application is being assessed, we will provide Complimentary Interim Accidental Death and Income Protection Cover.

Benefit Indexation
The Sum Insured on your policy will automatically increase each year by the Consumer Price Index (CPI) or 5%, whichever is higher.

Agreed Value
Your monthly benefit is agreed with you at the time of application and is based on your income at that time.

HIV / AIDS Cover
You are covered if you become disabled directly or indirectly due to HIV or AIDS (except for Accident only cover).

Waiver of Premium
If you become totally disabled, you won’t have to pay premiums from the end of the Waiting Period, until the end of the Benefit Period, or until the total disablement ceases.

Rehabilitation Expenses
If you have attended a rehabilitation program to get you back to work, we’ll pay the costs up to a maximum of 12 x your monthly benefit.

Recurrent Disablement
If you have returned to work on a full-time basis following payment of a disablement benefit and the same or related disablement recurs within 12 months, we will waive the waiting period.

We will treat the claim as a continuation of your most recent claim. We will continue to pay your claim up to the end of your benefit period.

Severity benefit
This pays an additional 1/3 of your monthly benefit if you are on claim for over 6 consecutive months and then become totally disabled to the extent that you are unable to perform at least 2 of the Activities of Daily Living, up to a maximum of $30,000.

Death Benefit
In the event of your death, your nominated beneficiary will receive 6 x your monthly benefit, up to maximum of $60,000.

Worldwide Protection
If you travel overseas, full cover is provided 24 hours a day, 7 days a week, anywhere in the world.

Needlestick Injury Benefit
For Occupation Category AA only.If you receive a needlestick injury or a splash injury while performing the duties of your normal occupation and become infected with HIV, Hepatitis B or Hepatitis C and experience a reduction in your earnings as a result. (Not applicable for the Accident Only cover)

Advantages of IP Advantage Optional:

• Specified Injury benefit – Pays a monthly benefit up to 60 months for a listed event under paralysis, loss or partial loss of various limbs and fracture of various bones due to injury.
• Total and Partial Disablement: Multi definition - If the life insured becomes Totally Disabled or Partially Disabled, they will be assessed under the 3 tiered ‘Multi’ definition of duty, time and / or income.

Advantages of IP PLUS Optional:
All of the above benefits in Advantage Optional are available as well as;

• No Claim bonus – If a claim is not made for at least three years after purchasing the PLUS Optional benefit, the life insured will be rewarded in the form of an increased insured monthly benefit, at no additional cost. The following table outlines the increase to the insured monthly benefit according to the number of claim-free years.
  

  Claim-free years	Bonus
  3	5%
  4	10%
  5	15%

  The increased benefit will be paid for up to 12 months while claim payments are being made. AIA Australia will only pay this benefit once during the life of the policy.

• Crisis Recovery benefit - Upon diagnosis of any of the 41 listed crisis events in terms of thepolicy definition by a medical practitioner, AIA Australia will pay a lump sum benefit equal to six times the insured monthly benefit.
• Guaranteed Future Insurability benefit - Whenever the life insured’s salary package increases the Guaranteed Future Insurability benefit provides an option to increase the insured monthly benefit, without medical underwriting. This is restricted to employees only, i.e. a self‑employed person is unable to exercise this benefit.
• Severity Benefit
  If the life insured has been on claim for more than six consecutive months after the end of the Waiting Period, and at that time the life insured is totally disabled to the extent that he or she is unable to perform at least two of the Activities of Daily Living and is under the continuous care and supervision by another adult, AIA Australia will pay an additional 1/3 of the monthly insured benefit (maximum of $30,000) until the end of the benefit period as long as the life insured continues to be totally disabled to the extent that they are unable to perform at least two of the Activities of Daily Living.

Brendan’s story

Brendan is a 32-year-old plumber who earns $98,100 gross income per annum. He and his wife have a $400,000 mortgage, with repayments of $2,800 a month. Brendan is healthy and leads an active lifestyle. With a child on the way, he wanted to ensure his family would be protected if something happened to him that made him unable to work.

Together with his financial adviser, Brendan decided that having an income protection policy would give him with the peace of mind he required. He applied for an Income Protection policy which would provide 75% of his salary in the event that illness or injury prevented him from being able to work.

While walking home from work one evening, Brendan slipped and severely twisted his knee. He underwent a knee reconstruction and was unable to work for four months while his knee healed.

His income protection policy enabled his income stream to continue which meant that he was able to concentrate on recovering, safe in the knowledge that his mortgage, car loan and family’s lifestyle would be taken care of during this period he was unable to work.