Income Protection CORE

Priority Protection

Safeguarding your financial security, should you ever find yourself unable to work due to illness or injury.

Being able to work and receive a salary means that you are your greatest asset. Your salary enables you to purchase your home, pay your bills and support you and your family’s lifestyle. Losing the ability to work unexpectedly due to injury or illness can be incredibly stressful. And without an income it may become challenging to meet your financial commitments and the day-to-day needs of your family that your salary usually covers.

One way to help safeguard your income is by choosing Income Protection CORE cover with AIA Australia. 

Should you be unable to work, your cover will replace up to 70% of your income for a period of your choosing, leaving you free to focus on the most important thing – your health and recovery. 

Below is a snapshot of Income Protection CORE cover and the options available to you. For the full terms and conditions refer to the Product Disclosure Statement and Incorporated by Reference information.

AIA Australia has prepared a Target Market Determination which describes the class of consumers that comprise the target market for this product. The Target Market Determination can be sourced at aia.com.au/tmds.

How it works?

Income protection insurance is cover that provides financial security if you’re not able to work because of illness or injury. That means you can concentrate on getting better, without having to worry about whether you can pay your bills or look after your loved ones. It works by providing you with a monthly payment of up to 70 per cent of your pre-claim income for a period of time that suites your circumstances.

Interested in holding income protection core cover?

You can buy this via a Financial Adviser or get a quote from AIA Financial Wellbeing.

You can tailor your Income Protection CORE cover to best meet your lifestyle needs, including:

Monthly benefit

How much of your salary you want to insure, to help cover ongoing essential costs

Benefit period

The maximum period you’ll receive payments for, should you ever need to claim

Waiting period

The amount of time you’re willing to wait between a claimable event occurring and your first payment.

The cost of your insurance – known as your premium – will vary depending on the Monthly Benefit, Benefit Period and Waiting Period you choose.
 
AIA Australia will also consider other risk factors to determine your premium. These include your age, gender, smoker status, occupation and current health.

Eligibility summary

You can choose from Variable age-stepped, Variable or Optimum premiums. For more information about these different premium types, please visit Life Insurance (aia.com.au) and discuss with your financial adviser.

Your Income Protection CORE policy can be set up in different ways, depending on how you would like to structure your insurance.

Ordinary policy

  • Owned by you
  • Premiums are payable by you
  • In the event of an illness or injury, any claim is paid directly to you

Superannuation policy

  • Owned by the trustee of a super fund – this option is available to you if you are a member of a SMSF, one of our platform partner super funds or if you apply to become a member of the AIA Insurance Superannuation Scheme No2 (an insurance-only fund set up to house your cover).
  • Premiums are payable from your superannuation fund. Options include paying from existing superannuation monies or making contributions to cover the premiums.
  • In the event of an illness or injury, any claim is paid via your super fund and is subject to superannuation law.
Ownership is something that should be carefully considered and discussed with a financial adviser. They will be able to explain any tax or estate planning implications for each ownership structure, as well as how legislation could impact how a claim is paid.

Category A1, A2, M, A3, A4

$30,000 per month

Category B1, B2, C1, C2

$25,000 per month

Category D

$15,000 per month

Occupation Category

Typical Characteristic
A1
  • Professionals, executives and senior management, in an office-based management role, earning more than $120,000 per annum over the last two (2) years; or
  • Professionals, executives and senior management, in an office-based work environment, whose income is less than $120,000 per annum over the last two (2) years, who hold a tertiary qualification (Bachelors or Masters degree, PhD granted by a recognised third level institution).
A2
  • Primarily for Science and IT professionals that are office and / or laboratory based, including select Engineering professionals that may not be solely office bound. Includes Civil Engineers, Research Chemists and Computer programmers.
M
  • Select highly qualified medical professionals requiring membership of a professional or government body in order to practices that occupation.
  • Includes Doctors (medical), Anaesthetists, and Cardiologists and excludes allied health professionals such as chiropractors, osteopaths and physiotherapists.
A3
  • White collar occupations that involve clerical and administrative work only, who are not working in a warehouse, manufacturing or industrial environment. Includes Data Entry Operators, Clerks and Copywriters.
A4
  • Select white collar occupations that are not strictly office or deskbound and whoes roles may include a degree of driving or travel. This category is also for selected allied health professionals whose roles may require some clinical hands-on duties. Includes Interior Designers, Osteopaths, and Agricultural Consutants.
B1
  • Occupations not classified as white collar and may involve some very light manual work. Includes supervisors and persons working in environments with a low accident or sickness risk.
B2
  • Occupations that involve light manual work or limited driving or working in environments with an increased accident or sickness risk.
C1
  • People who perform predominently light to moderate manual duties in various industries and environments with a moderately increased accident or sickness risk, including selected tradespeople (those who hold a trade certification and licencing and currently work in that trade).
C2
  • People who perform moderate to heavy manual duties in various industries and environments with a moderately high risk of accident or sickness, including selected tradespeople (those who hold a trade certification and licencing and currently work in that trade).
D
  • Semi-skilled workers and unqualified tradespersons, who perform heavy manual work, e.g. Fencing Contractors, Plasterers, Cleaners.
E
  • Unskilled workers, who perform extra heavy manual work, e.g. Concreters, Earth-Moving Workers, Carpet Layers.
Income Protection CORE cover is not available to Occupation Category E

2 years

Offering a flat 70% income replacement and Own Occupation definition for duration of your claim.

5 years

Offering a flat 70% income replacement and Own Occupation definition for duration of your claim.

To Age 65, offering choice of;
 
  • Flat 70% income replacement with an Own Occupation definition transitioning to Suited Occupation definition after 24 months on claim, or
  • 70% income replacement tiering to 60% and Own Occupation definition transitioning to Suited Occupation definition after 24 months on claim.

  • 30 days
  • 60 days
  • 90 days
  • 2 years

Optional add ons

Claim escalation

Choose to have your claim payments increased each year while continuously on claim, in line with the Consumer Price Index (CPI). This can help ensure your payments continue to meet your financial needs should you be unfortunate enough to stay on claim long-term. 

Retirement protector

Choose to have a monthly benefit paid to a nominated Superannuation Fund in addition to Total or Partial Disablement Benefits paid under your Income Protection CORE cover. This can help you to replace or complement any previous retirement planning that has been compromised by you being unable to work due to illness or injury. 

Your Income Protection CORE cover is loaded with valuable benefits - providing you with great value and enhanced protection.

Total or partial disablement

You can select from a range of benefit options providing you with a monthly payment of up to a maximum of 70% of your actual income in the 12 months prior to your claim. 

Benefit indexation

Your Sum Insured can automatically be increased each year to keep up with the cost of living (based on the Consumer Price Index).

Waiver of premium

Your Income Protection CORE premiums will be waived while you are on claim. 

5 year-rate guarantee

Enjoy greater certainty with our 5-year rate guarantee on 2-year and 5-year benefit period options.

Salary increase benefit

Allows you to increase your insured Monthly Benefit by 15%, up to a maximum of $2,500, when your salary increases, without providing further evidence of your health or insurability. 

Rehabilitation expenses

Reimburses or covers the costs of your participation in a pre-approved rehabilitation program (up to a maximum of 12 times your Insured Monthly Benefit). 

Involuntary unemployment waiver of premium

Waives your Income Protection CORE premiums for up to three months if you meet the definition for Involuntary Unemployment (provided only once in any 12-month period).

Needlestick injury (occupation category M only)

Pays a benefit if your earnings are reduced due to you being accidentally infected with HIV, AIDS or Hepatitis B or C because of a needlestick or splash injury while performing the duties of your normal occupation.

Several of the benefits are provided through a Complimentary Income Protection CORE Extras policy, which is provided to you if you have an Income Protection CORE policy.

Eligibility summary

Please consider these eligibility requirements when choosing Income Protection CORE cover with AIA Australia.

Minimum entry age

  • Variable age-stepped policies: 15 years
  • Variable premium and Optimum premium policies: 34 years

Minimum premium value

  • The minimum premium is $300 per year per Policy.

Maximum entry age based on occupation category

  • Category A1, A2, M, A3, A4, B1, B2: 59 years
  • Category C1, C2, D: 54 years

Employment requirements by occupation category

  • Category A1, A2, M, A3, A4: Employed (permanent or part-time) working a minimum of 20 hours per week.
  • Category B1, B2, C1, C2, D: Employed (permanent or part-time) or self-employed working a minimum of 25 hours per week.
  • Category A1, A2, M, A3, A4, B1, B2, C1, C2, D: Self-employed working a minimum of 25 hours per week.
Choosing to hold your cover with AIA Australia, not only means you’re protected by one of Australia’s largest insurers, but you also get to access great benefits that help you stay healthy and support your recovery if you become sick or injured.

Back to wellness - Back to work – Back to life

Getting back to work is a vital part of recovery that can benefit your health and wellbeing in many ways. This is the same whether your injury or illness is physical or psychological.

Working collaboratively with you and your supporting medical professionals, our experienced rehabilitation team delivers a wide range of support services all designed to return you back to wellness, back to work and back to life.

AIA Vitality

AIA Vitality is a personalised, science-backed health and wellbeing program that supports members to take a small step towards a healthier life.

Attach AIA Vitality to your Income Protection CORE cover to receive an initial 7.5% discount on your premiums. Even better, if you engage with the program and achieve Platinum Status, you can increase your discount by 1% at each policy anniversary, up to a maximum of 20% off.

Regularly review your cover

If you already have income protection cover, we recommend regularly reviewing your policy to ensure you have the right amount of cover. Consider updating your cover if your salary or occupation has changed, or you’ve made a positive lifestyle change like stopping smoking. By keeping your information up to date, you can get the best value for your policy, which could mean paying less.

Take the next step in protecting your financial future with AIA Financial Wellbeing.

  

Book a chat
Recommendation Prompt
My husband and I were looking to see how we could set ourselves up for our retirement and our financial adviser recommended we take out Income protection with AIA.
 
When I received a diagnosis of breast cancer, we were absolutely devastated. AIA was just amazing and so kind. The payments we received made a huge difference financially.
 
 - Ingrid
I was riding my motorbike home when my front wheel locked up. Then the next moment I woke up in hospital.
 
I decided to go with AIA for Income Protection cover when I purchased my house. And I couldn’t have asked for a better company to support me when I needed it. AIA were sensational. Without my monthly payments I could have lost my house. 
 
- Adam

Share

LINKEDIN
TWITTER
Facebook
Email
Product Disclosure Statement
Incorporated By Reference Information