Priority Protection

Help is at hand to manage your premium changes

You may have recently received a letter from AIA Australia (AIA) informing you that your premiums are increasing.

Your cover gives you peace of mind that you (and your family) are protected should the unthinkable happen. It also includes a range of wellbeing support to help you live a healthier, longer, better life – throughout your life, not just if you need to make claim.

On this page you will find more information about why premiums are changing, how to manage your insurance cover, ways to reduce your premium and who to contact should you need more information.

Frequently asked questions

Each year, we review our premium rates to ensure our products remain sustainable and we can continue to pay claims.
Review of Income Protection Premiums
Australian life insurance companies are paying out record numbers of disability claims, including a more than doubling in claim benefits paid for mental illness between 2013 and 2018*.
We’ve experienced a continued increase in Income Protection claims consistent with the wider industry. One of the biggest factors is that claims are continuing longer than expected. This has a material impact on the overall claims cost. Several factors are driving this but particularly a rising proportion of mental health claims, which typically have a longer than average duration.
The low interest rate environment also means that lower future investment returns are anticipated on reserves, which are the premiums we put aside to pay for future claims. As a result, higher premiums are required to fund the same expected future claims.
*Source: FSC & KPMG 2020
Review of Crisis Recovery and Total and Permanent Disablement (TPD) Premiums
Crisis Recovery and TPD claims experience has also been deteriorating over recent years across the industry. Cancer remains the top cause of Crisis claims for both males and females, while mental health is the top cause of TPD claims for females and accidents and injury are the top cause for males.
These factors lead to a need to increase premiums to ensure sustainability so we can continue to be there for our customers when they need us.

We understand that making an insurance claim is likely to occur at one of the most difficult times in your life. That’s why we keep our approach simple and promise that every claim that should be paid, is paid - to support you in your time of need.
We acknowledge, however, that the current claims situation is impacting premium affordability for everyone. Therefore, AIA has taken an industry lead and introduced two new sustainable products to offer more affordable cover:
  • Crisis Extension was introduced in October 2020. This allows Crisis cover to be structured flexibly, to pay large sums insured for medical events that are likely to have a high impact on your life, while still offering a level of cover on medium-to-low impact medical events.
  • Income Protection CORE was introduced in January 2021. This was the industry’s first sustainable Income Protection product, with the aim of ensuring long term sustainability of premiums. Creating this stability will work to lessen the need for further rate increases.
Both Crisis Extension and Income Protection CORE may be available to you to help manage your premiums. If you are interested in learning more about these products, we recommend you speak to your financial adviser who can review your situation and recommend if these products are suitable for you.
While claims experience influences premiums significantly, we have and will continue to create business efficiencies and promote wellbeing and rehabilitation programs that will also support stabilising premiums.

The premium change shown on your letter is the increase that has been applied as a result of our premium rate review. However, there are a number of other changes that occur on your policy each year that may also increase your premium. For example:
  • If you have Stepped or Optimum premiums, your premiums generally increase each year as you get older
  • If you have Benefit Indexation your sum insured or monthly benefit increases each year to keep in line with inflation
  • You may have had discounts applied to your policy that have come to an end
  • If you are a member of AIA Vitality and are not engaged in the program, your associated discount will reduce each year (but if you engage with the program, you could increase your discount and earn rewards along the way)
The overall increase in your premium since last year will be a combination of all these factors.

Life insurance is structured as a pool of risk, where a group of people with similar risk characteristics pay premiums into a pool, and when someone makes a claim, it is paid for by the premiums from the entire pool. The risk characteristics that help determine the pool and therefore premium rates include age, gender, smoker status, occupation and premium type.
We will never single out one person and change the premiums of their policy alone. So when there are more claims than expected in the pool and there is a need to increase premium rates, the cost is shared by all policies in the pool, even those who have not claimed in the past. 

The premium rate change will apply from your next policy anniversary date. You can find this date in your letter.

We highly recommend that you speak to your financial adviser. Your financial adviser recommended that you take out insurance with AIA on the basis that it provided the best cover for your unique financial situation and personal circumstances.
Your financial adviser will be able to review your current situation, including your health status and financial situation, and make some recommendations about how best to manage your premiums, while maintaining cover to suit your needs and protect you (and your family).

There are many ways to alter your policy to help manage premium affordability – your adviser can recommend which alterations may be suitable for your needs.

Some examples of alterations your adviser may recommend:
  • Decline Benefit Indexation, so your sum insured does not increase this year
  • Change the ownership structure of your policy to pay some or all of your premiums from within superannuation
  • Change your payment frequency to spread the premium cost throughout the year
  • Reduce your sum insured or monthly benefit
  • Specifically for Income Protection cover:
    • Reduce your Benefit Period
    • Increase your Waiting Period
    • Convert your Income Protection cover to Income Protection CORE cover
    • Remove PLUS option or Advantage options
  • Specifically for Crisis cover:
    • Convert some of your cover to Crisis Extension so your main Crisis Recovery sum insured (and premium) may be reduced
  • Remove some optional benefits on your policy, while retaining your base cover
  • Apply the Premium Freeze benefit to maintain your old premium by reducing your sum insured
  • Engage in AIA Vitality
Please speak to your adviser to confirm appropriateness of these options for your current circumstances, including your health status and financial situation.

You can reduce your cover at any time, however before you do so we strongly recommend that you speak to your financial adviser in respect of your current financial position and health status to ensure that any reduced level of cover is still suitable for your needs.
If your adviser recommends that you reduce your cover now, you can apply to increase it again in the future. However, you will need to provide health, pastime and, where appropriate, financial evidence in order to do so. Depending on the outcome of that assessment, there is a risk that you may be unable to obtain additional cover or may have to pay substantially more if you require additional cover in the future. This is why it is important to carefully consider any reductions in your cover and emphasises the need to discuss this with your financial adviser.

We regularly review our insurance rates. We do this to ensure our products remain sustainable and we can continue to pay claims. To ensure that this remains the case, we will continue to review our premium rates on an annual basis. If we do increase premium rates again in the future, you will be notified in advance of this happening.

No. The change to your premium rates does not impact your policy terms and conditions in any way. You still remain protected, provided your premiums are paid when due.

Your policy has been tailored to your specific needs by your financial adviser, who recommended AIA as being the most suitable product for you. Choosing to hold your cover with AIA, not only means you’re protected by one of Australia’s largest insurers, but you also get to access great services and programs that help you stay healthy and support your recovery if you become sick or injured. These include:
AIA Vitality
AIA Vitality is a science-backed health and wellbeing program that supports you for taking small steps towards a healthier you.
Attach AIA Vitality to your cover to receive an initial 17.5% discount on your Lump Sum premiums and an initial 7.5% discount on your Income Protection 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 20% discount.
Understanding the risks of cancelling your cover:
Before you consider cancelling your cover, you should consider your current health status, age and financial position as you may be unable to obtain the same cover or may even have to pay substantially more if you require protection in the future. It’s important to note, you will not be eligible for insurance claim payments for any events or conditions that arise after your cover has ended. If you are replacing your cover with alternative cover, you should not cancel it until the replacement cover is in place. We recommend that you consult your financial adviser before cancelling your policy. Your adviser can explain the financial implications of cancelling your policy and how it may impact you and your family’s circumstances.

We highly recommend that you speak to your financial adviser in the first instance as your policy is managed through them.
However, should you need to speak to someone at AIA, please email our friendly Customer Care Team at You can also call us on 1800 333 613 between 8am-6pm (AEST/AEDT), Monday to Friday, excluding public holidays.

Your financial adviser details should be included on your premium change letter. Their contact details should also appear on your renewal letter, which you will receive separately. However, if this is not the case, please email our friendly Customer Care Team at and we will be able to get those details for you.

If you don’t have a financial adviser, we can arrange for one to get in contact with you. Please click on the “Find an adviser near you” button below and we’ll do the rest.

In 2020 alone, AIA paid $2.2 billion in claims to all our customers# – that averages out to over $42 million per week.
We paid out $695 million in retail insurance claims – that’s on policies just like yours.
Trust is everything when it comes to insurance. So, when you need to make a claim, we're the leaders in looking for ways to support you. And for our 3.8 million customers, that means getting the personalised support they need, when they need it most. Whether it's paying claims, or providing access to programs such as Medix or our rehabilitation programs, we help to make a great difference to the people who put their trust in us and help them enjoy Healthier, Longer, Better Lives.
# Includes payments made by AIA Australia Limited and the life insurance business previously known as CMLA.

Not yet, but we are working on giving customers the choice to receive key communications via email over the coming months.
If you would like to receive communication via email in future, please ensure we have your current email address on file, and you will automatically get emailed communications once available.

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