Life Insurance

Stepped premiums are calculated each year based on your age at your policy anniversary. They generally go up each year as you get older.
 

Depending on your insurance needs, Stepped premiums may be more appropriate and cost-effective. Your financial adviser can recommend the appropriate premium type to suit your personal circumstances.
 

Stepped premiums can increase for other reasons too not just with age. For example, if your policy includes indexation, your cover amount automatically increases each year, so your insurance protection keeps pace with the cost of living (inflation). This means as your cover amount grows, your premiums will also increase.

Your premiums may also increase if there are changes in stamp duty rates, if we change premium rates for a group of policies or if you have a policy discount that is due to expire or reduce. If AIA Vitality is attached to your policy, your premium discount will vary based on your engagement in the program.

Learn more about Stepped premiums at Stepped-premiums.

Level premiums are calculated based on your age on the date your cover starts.
 

As your Level premiums are generally averaged out over a number of years, your Level premiums won’t increase because of your age until your Level premiums end.

When your Level premiums end (on your policy anniversary before you turn 65 or 70), your premiums will automatically change to Stepped, which means your premiums increase every year as you get older. Learn more about Stepped premiums at Stepped-premiums.

Depending on your insurance needs, Level premiums may be more appropriate when you hold the insurance cover over a longer period of time. Your financial adviser can recommend the appropriate premium type to suit your personal circumstances.

Whilst Level premiums don’t increase because of your age, they may still increase for other reasons. For example, if your policy includes indexation, your cover amount automatically increases each year, so your insurance protection keeps pace with the cost of living. This means as your cover amount grows, your premiums will also increase.

Your premiums may also increase if there are changes in stamp duty rates, if we change the premium rates for a group of policies or if you have a policy discount that is due to expire or reduce. If AIA Vitality is attached to your policy, your premium discount will vary based on your engagement in the program.

When we calculate premiums for indexation increases in cover, we continue to base the calculation on your age at the date your cover started, not at the date of the increase - which would be more expensive.

Learn more about Level premiums at Level-premiums.