Priority protection

Help is at hand to manage your premium changes

Having the right cover in place helps ensure that you protect your family, lifestyle, and future. With AIA Australia (AIAA), your cover also offers you access to a wide range of wellbeing support, helping you live a healthier, longer, better life.

You would have recently received a letter from us informing you of upcoming changes to your premium rates.

On this page you will find more information about why your premium rates 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

Due to the increasing cost of providing your cover and to ensure that we can continue to support you when you need it the most, AIAA reluctantly needs to increase our premiums. Income Protection in Australia continues to face ongoing sustainability challenges, including lower than expected return-to-work outcomes and the current high inflationary environment. This has a material impact on the overall cost of providing your cover. 
The premiums AIAA put aside to pay for future claims are based on the expected future investment returns, which are driven by the interest rate environment. While the interest rates have risen recently, the low interest rates over the past years have lowered cumulative investments returns. As a result, higher premiums are required to fund the same expected future claims.
We acknowledge that this may be disappointing, however, we remain committed to keeping premium increases as low as possible to protect your financial wellbeing.

In January 2021, AIAA took an industry leading position and introduced Income Protection CORE, which offers more affordable cover. This was AIAA’s response to supporting a sustainable Income Protection product, with the aim of ensuring long term sustainability of premiums. 
Income Protection CORE may be available to you to help manage your premiums. If you are interested in learning more about this product, we recommend speaking to your financial adviser who can review your situation and assess if this product is suitable for you.
In addition to the introduction of this product, we will continue to create business efficiencies and promote wellbeing and rehabilitation programs in an effort to support stabilising premiums.

Income Protection, just like any other life insurance product, is structured as a pool of risk, where a group of people with similar risk characteristics pay premiums into a pool. When someone makes a claim and takes longer to return to work, it is paid for by the premiums from the entire pool. The risk characteristics that may determine the pool, and therefore premium rates, include age, gender, smoker status, occupation, premium type and benefit period.
We will never single out one person and change the premiums of their policy alone. So, when there are longer claims than expected in the pool and there is a need to increase premium rate and the cost is shared by all policies in the pool, even those that are currently not on a claim.
Whilst you have not made a claim, having the right cover in place helps ensure you protect your family, lifestyle and future, should the unexpected happen.

The premium change shown in your letter is the increase that has been applied as a result of our premium rate review. However, there are other factors that may also change your premium, including:
  • if you have stepped or optimum premiums (during stepped premium period), your premium will generally increase each year as you get older as the likelihood of claiming increases with age.
  • if you have benefit indexation, your sum insured, or monthly benefit increases each year to keep up with inflation and premiums will increase proportionately.
  • you may have had discounts applied to your policy that have come to an end.
  • if you are an AIA Vitality member, your engagement with the program will impact the premium discount you receive. If you’re an active member, you could increase your discount while earning great benefits and rewards. However, if you become less active, your premium discount may decrease.
The overall increase in your premium since last year may be a combination of these factors.

Your new premium rate will apply from your next policy anniversary date. You can find this date in the letter we sent you regarding your premium changes.

Your cover was recommended to you by your financial adviser based on what suited your unique financial situation and personal circumstances at the time. Having the right cover ensures you have the right protection in place should the unexpected happen. 
We recommend speaking to your financial adviser who will review your current situation to recommend ways to manage your premium, whilst maintaining suitable cover to protect what matters most.

Your financial adviser can recommend ways to adjust your policy to help manage the cost of your premium based on your individual needs.
Options specific to Income Protection cover include:
  • moving to a shorter benefit period, such as adjusting your benefit period to 5 years instead of the policy anniversary before you turn 65 or 70
  • increasing your waiting period, and/or
  • updating your occupation if circumstances have changed.
Other adjustment examples include:
  • declining benefit indexation, so your sum insured does not increase this year
  • changing the ownership structure of your policy from non-superannuation to superannuation-owned
  • changing your payment frequency to spread the premium cost throughout the year
  • reducing your sum insured or monthly benefit
  • if you’ve stopped smoking for more than 12 months, you can apply for non-smoking premium rates
  • if you have any medical or pastime loadings that could be potentially reviewed as your health has improved, or you have ceased the pastime
  • removing some optional benefits on your policy, while retaining your base cover 
  • applying the premium freeze benefit to maintain your old premium by reducing your sum insured, and/or
  • engaging in AIA Vitality.
Adjusting your policy to reduce your premium can be a simple step by requesting via your financial adviser or contacting our Customer Care Team via email at or on 1800 333 613 between 8am-6pm (AEST/AEDT), Monday to Friday, excluding public holidays, However, please speak to your financial adviser to confirm if these options are right for you.

You can reduce your cover at any time. If you decided to reduce your cover now, you can apply to increase it again in the future. However, to do so, you will need to provide satisfactory health, pastime and, where appropriate, financial evidence. 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. 
This is why it is important to carefully consider any reductions in your cover and we recommend you discuss this with your financial adviser before making such decisions.

AIAA regularly reviews its insurance premium rates which can result in premium increases. We do this to ensure our products remain sustainable and that we can continue to pay claims. 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 remain protected, provided your premium payments are up to date.

We will only send you notifications for policies that are impacted by premium rate changes.

Your policy has been tailored to your specific needs by your financial adviser, who recommended AIAA as offering the most suitable product for you. Choosing to hold your cover with AIAA not only means you’re protected by one of Australia’s largest insurers, but you also get access to AIA Embrace – a holistic wellbeing ecosystem of world-class programs and partnerships designed to support your everyday health and wellbeing at every stage of life’s journey. These programs include:
AIA Vitality is a personalised, science-backed health and wellbeing program that rewards you for taking small steps towards a healthier lifestyle.
Attach AIA Vitality to your cover to receive up to 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 actively 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.
In addition to the discounted premiums, you can earn other benefits and rewards, such as up to $760 in e-gift cards or cashback, discounted gym memberships, cashback on eligible Virgin Australia Flights, and more. 
Fees apply for an AIA Vitality membership. 
AIA Rehabilitation
AIA Rehabilitation is designed to support our customers with all types of injury and illness to return to the workforce and everyday life – with the help of highly experienced rehabilitation professionals.
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, work, and life.
As a customer of AIAA, you get free access to this one of the largest and most experienced rehabilitation teams in the life insurance industry.

Before you decide to cancel your cover, you should consider your current health status, age, and financial position as you may be unable to obtain the same cover or a cover with the same benefit features again 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 recommend that you speak to your financial adviser in the first instance as your policy is managed through them. 
However, should you need to get in touch with AIAA, please email our Customer Care Team at or call us on 1800 333 613 between 8am-6pm (AEST/AEDT), Monday to Friday, excluding public holidays.

Your financial adviser’s details should be included in your premium change letter. Their contact details should also appear on your renewal notice, which you will receive separately. 
However, if this is not the case, please email our Customer Care Team at or call us on 1800 333 613 between 8am-6pm (AEST/AEDT), Monday to Friday, excluding public holidays, 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 to get started.

AIAA is working to transition from paper-based communications to email to reduce our impact on the environment. 
Over the next 12 months, you will receive a combination of print and email communications using your current details on record. 
If you’d like to update your current details, please contact our Customer Care Team on 1800 333 613 between 8am-6pm (AEST/AEDT), Monday to Friday, excluding public holidays.

At AIAA, we’re committed to supporting our 3.7 million customers when they need it most. As such, we make every effort to pay claims promptly, and we ensure that every claim that should be paid is paid.
In 2021, we paid $2.1 billion in claims to our customers – that averages out to over $40 million per week. We paid out $702 million in retail insurance claims itself, in which $265 million was related to Income Protection claims.