Cancel & Replace: understanding when policy replacement is appropriate

ARTICLE
26 May 2026 dot 3 min read

Policy cancellations and replacements – commonly referred to as Cancel & Replace – play an important role in helping advisers ensure clients continue to hold cover that meets their evolving needs.

Cancel & Replace allows an existing Priority Protection or Tailored Protection (ex-CMLA) policy to be replaced without full underwriting. However, it is only available where the replacement is required to facilitate a change that cannot be completed under the existing policy. 

When a Cancel & Replace is accepted

While the scenarios that trigger the requirement for a Cancel & Replace vary by product line, in general, a Cancel & Replace application will only be accepted where the requested change cannot be processed under the existing policy. Some examples include:
 
  • Changing ownership from an ordinary policy to a policy held inside super and owned by a trustee or vice versa
  • Setting up certain new linked policy structures
  • Adding a new benefit that is not available under an existing product series, or removal of some benefits
  • Changing from legacy IP to IP CORE

When Cancel & Replace is not permitted

Cancel & Replace will not be accepted where the request can be completed through existing administrative processes. This includes situations where:
 
  • The change can be processed as an alteration under the current policy
  • A change of ownership can be completed via a Memorandum of Transfer 
  • to access new business pricing including any discount structures that may be available

Cancel & Replace resources

You can always refer to the latest Adviser Guide to confirm eligibility and requirements.
 
In addition, we've developed the AIA and ex-CMLA Product Change Matrix, which provides a comprehensive overview of product change scenarios, including which changes will trigger a Cancel & Replace.
 
Both the Adviser Guide and the Product Change Matrix are available on the Adviser Portal under Resources > Resources Library.

March 2026 updates

In March we updated the eApp to make Cancel & Replace quoting simpler and more efficient, enabling you to complete more scenarios without needing to request a manual quote from your AIA Australia Client Development Manager or Sales Support team.
 
As part of this update, we introduced new questions to identify existing benefits on your client's current policy, including:
 
  • Extended Selection Discount
  • Current AIA Vitality Status
  • Healthier Life Reward discount.
 
These enhancements help ensure the correct discounts are applied when replacing a policy.
 
For a small number of Cancel & Replace Priority Protection policies with an existing AIA Vitality membership the AIA Vitality contribution fee may not appear in the eApp generated quote. Where the AIA Vitality contribution fee is applied to the previous policy, it will continue to apply and will be included when the new policy is issued.

Need more help?

If you need any further assistance, please contact your AIA Australia Client Development Manager or Sales support team.