Addressing the affordability concern

At AIA Australia, we understand that clients have various every day expenses, creating a need to keep an eye on their budget. From paying for groceries, maintaining mortgage repayments, child related expenses and many more. Providing your clients with various options to help minimise cost and maintain their insurance cover is something AIA can help with. 

Premium payment basis – paying premiums once annually is a more affordable option because your clients avoid paying frequency loadings of up to 8% for premiums paid monthly or half yearly.

Premium Structure – structuring your client’s policy with a long term view provides additional options. For example, whilst Stepped premiums are cheaper than the alternatives in the first year, over the long term, other premium structures could be cheaper. AIA Australia provide clients with three additional premium structure options, these are:

• Level – True level premiums offer a cost-effective way for your clients to save on their premiums over the long term. The best part about AIA’s true level premiums, is we calculate benefit indexation increases based on the client’s age at the time the cover commenced, not at their age when the increase applies.
• Term Level – Term Level allows your clients to keep their premiums level for a pre-determined period of 5, 10 or 15 years before their premiums covert to stepped and at which point they also receive a loyalty discount. This premium option is ideal for clients who have specific financial needs with known fixed terms, enabling you to match the right premium pattern to your clients’ needs.
• Optimum – gives your clients the option to have the upfront cost effectiveness of stepped premiums with the consistency and longer term savings of level premiums.

Superannuation rollover monies - using their superannuation rollover monies to pay for their policy. The benefits of using super rollover monies is that your clients won’t have to budget for their policy via their available funds, therefore keeping their policy in place if the unfortunate were to happen. Furthermore, the policy premiums are paid by using pre-tax income.

Becoming a non-smoker – if your client currently holds an AIA Priority Protection policy, was accepted on smoker rates and has quit smoking for over 12 months, they can complete a non-smoker declaration, which could reduce their premiums significantly.

Additionally, if you have clients with health or pastime loadings on their policies, reviewing those policies could result in cheaper premiums where the loadings can be removed due to health improvements.

AIA discounts – AIA has a number of discounts available which are outlined below.

If your client has both Lump Sum and IP plans with AIAA, they may be eligible to receive a 12.5% discount on their Lump Sum premiums.

If your client’s policy includes:

• one of more ‘Required Income Protection Plans, (as described in the table below) with a total combined premium for all ‘Required Income Protection Plans’ of $700¹ or more per year, and
• one or more ‘Eligible Lump Sum Plans’ (as described in the table below) with a total combined premium for all ‘Eligible Lump Sum Plans’ of $700¹ of more per year,

then the Eligible Lump Sum Plan(s) premium will receive the Bundled Discount of 12.5%.

1 Excluding Stamp Duty, Policy Fee, AIA Vitality Contribution Fee, AIA Vitality Discount, Health and Life discount and Term Level loyalty 

AIA Health Insurance (previously myOwn health insurance) is AIA’s health insurance option to increase your clients’ coverage providing them with greater options. If your client is insured under an AIA Health Insurance or myOwn policy, their Priority Protection premium (exclusive of stamp duty, premium frequency charge, health loadings and policy fee) may be discounted by 5% as long as AIA Vitality remains attached to the AIA Health Insurance or myOwn policy.