From 15 October 2024, we will be communicating premium changes to inforce clients in advance of their policy anniversaries. In our communications, we will highlight the significant role that life insurance plays in protecting your clients, as well as the importance of discussing their options with you.
Impacted AIA Priority Protection products and benefits
Income Protection
These changes apply to closed to new business series AIA Priority Protection Income Protection benefits (IP, IP Accident Only, IP Essentials, Business Expense) and all optional riders. There is no change to our current on-sale Income Protection CORE premium rates.
Rate changes are based on the PP series when the policy was issued and Age Next Birthday.
There are no changes to Optimum premium loadings. Optimum premiums will therefore increase by the same percentage as Variable age-stepped (Stepped) & Variable (Level) premium rates at the same age.
| Income Protection (closed to new business series) | Variable age-stepped (Stepped) & Variable (Level) Premium^ |
|---|---|
| From PP03 (Priority Protection CIBs – effective September 2001) | 16.2% - 21.2% |
| From PP14 (PDS Version - effective 1 December 2014) | 6.2% - 11.2% |
Total and Permanent Disablement (TPD)
There are no increases for Age Next Birthday 70 or above.
Rate changes will apply to all TPD and Double TPD benefits (TPD, Universal TPD, Accidental TPD) and all optional riders except for the following:
- Waiver of Premium
- Family Protection
- School Fees Protector
- Needlestick Injury
The rate changes are based on Age Next Birthday, gender and TPD definitions. The impacted PP series are from PP03 (Priority Protection CIBs – effective September 2001) until and inclusive of PP22B (PDS Version 29 - effective 16 April 2023).
| Variable age-stepped (Stepped) & Variable (Level) Premium^ | |
|---|---|
| TPD Own Occupation TPD Any Occupation with Maximiser rider |
25% - 35% |
| TPD Any Occupation TPD Home Duties TPD All Duties TPD Universal |
6% - 16% |
There are no changes to Optimum premium loadings. Optimum premiums will therefore increase by the same percentage as Variable age-stepped (Stepped) & Variable (Level) premium rates at the same age.
Crisis Recovery
Rate changes will apply to all Crisis and Double Crisis benefits (Crisis Recovery, Cancer Plus, Coronary Plus, and Cancer and Coronary) but excludes Crisis Extension.
All optional Crisis or Double Crisis riders are impacted by the rate changes except for the following optional riders:
- Waiver of Premium
- Family Protection
- School Fees Protector
- Needlestick Injury
The rate changes are based on the PP series when the policy was issued, Age Next Birthday and the premium structure.
There are no changes to Optimum premium loadings. Optimum premiums will therefore increase by the same percentage as Variable age-stepped (Stepped) & Variable (Level) premium rates at the same age.
| Variable age-stepped (Stepped) Premium^ | Variable (Level) Premium^ | |
|---|---|---|
| From PP01 (PP CIBs – effective September 2001) | 7% - 12% | 30% - 35% |
| From PP12 (PDS v10 – effective 3 December 2011) | 27% - 32% | |
| From PP14 (PDS v14 – effective 1 December 2014) | 5% - 10% | 25% - 30% |
| From PP16 (PDS v16 – effective 10 December 2016) | 20% - 25% | |
| From PP18 (PDS v18 – effective 18 May 2019) | 3% - 8% | 15% - 20% |
| From PP20 (PDS v20 – effective 10 October 2020) until and inclusive of PP22B (PDS v28 – effective 16 April 2023) | 5% - 10% |
These rate changes to Income Protection, TPD and Crisis Recovery will commence from 17 November 2024, impacting your clients as they go through their annual policy renewal over the following 12 months.
^AIA’s premium labels are changing. Although the terminology has changed, the premium type itself remains the same. Stepped premium will be seen as Variable age-stepped and Level premium will be seen as Variable. You may continue to see premiums labelled with either the old or new terms.
Ways to manage your client’s premium
We're here to support you and your clients through these changes, here are some options that can impact your client’s premium to help manage affordability concerns.
1. Turn off automatic indexation
2. Reduce the sum insured
3. Update payment frequency
4. Quit smoking? Update us
Helping address client affordability concerns
We’re here to support you and your clients through these changes, here are some options that can impact your client’s premium to help manage affordability concerns.
