Our dream is to champion Australia to be the best protected nation in the world. We want to help clients press pause on this financial strain and take back control with our 5-year rate guarantee on new Income Protection CORE policies with 5-year or 2-year benefit periods#.
Prior to 2021, Australia enjoyed many years of low inflation rates. However, the last couple of years has seen a surge in costs across the board, causing financial challenges for many Australians.
What costs have changed in the last year?
|Average cost increases of goods and services in Australia||Percentage increase|
|Food and non-alcoholic beverages||8.0%|
|Recreation and culture||8.6%|
What hasn’t changed in the last year?
Our premium rates for Income Protection CORE policies with 5-year or 2-year benefit periods submitted on or after 14 August 2022.
What are the advantages of the 5-year or 2-year benefit periods?
Most of our IP claimants return to work within 2 years.
Advancements in medicine and rehabilitation options have led to a shift in thinking regarding suitable benefit periods. So, ask yourself, are ‘to age 65’ benefit periods the right choice for your clients?
Enjoy greater pricing stability with our 5-year rate guarantee offer
Reduce the cost of their premiums when compared to age 65 policies
Maintain an “Own Occupation” definition for the full claim period
Have greater certainty
Better manage their budgets
Channel extra savings to pay for debts, such as a mortgage
Make extra concessional/non-concessional superannuation contributions
Create a cash buffer to offset the increased cost of living
By offering pricing stability, we’re helping clients manage household cost pressures and inflationary markets, while ensuring they still have the cover they need when they need it most.
From an adviser perspective, providing 5 years of greater certainty to clients makes future conversations easier and gives you greater confidence when recommending AIA.
Helping clients press pause allows you to:
Set attainable goals with less uncertainty
Navigate complex financial situations
Create better tailored investment strategies
Advise clients on how to best manage their savings
With the ongoing cost-of-living pressures, mixed in with the desire to protect our clients’ futures, any bit of certainty is welcome.
October 15 2023 Update
Delivering more certainty for our Priority Protection customers has never been more important. That’s why we’re extending our existing 5-year rate guarantee# to all LEVEL premium Income Protection CORE policies and Lump Sum policies. This means you and your clients can count on our support amid continuing cost-of-living pressures, with reassurance and stability around ongoing premiums.
#If an existing Policy is altered or cancelled and replaced with another Priority Protection policy, the premium rate guarantee period does not restart from the date of the alteration or replacement. For full details, please see the AIA Adviser Guide.
Need more help?
If you would like to learn more about our 5-year Rate Guarantee and how your clients can best utilise this offer, please reach out to your Client Development Manager or our Technical Advice team at email@example.com.
Alternatively, read the 5-year Rate Guarantee giving clients more certainty article to learn more about how this offer helps your clients.