Before you make any changes to your cover, it’s important to think about your current situation and what you might need in the future. We suggest you speak to a financial adviser or contact us before making any changes.
At AIA, we know life changes – and so can your insurance needs.
If your premium has increased, there are ways to help manage it without losing the protection you value.
Here are some options to consider. You can choose one or more based on what’s right for you.
Your options at a glance
Get help to manage your premiums
Frequently asked questions
At AIA, over 3.1 million Australians trust us to protect what matters most. To keep offering this protection, we review our prices every year.
This year, due to the rising costs of providing cover some life insurance premiums will go up. Even with this change, your AIA cover still gives you great value and peace of mind.
Other reasons your premium might change include:
- Your cover increases each year to help keep up with inflation due to benefit indexation.
- You have “variable-age stepped premiums,” which go up as you get older.
- A discount on your policy has ended or changed.
Life insurance works by pooling money from policyholders with similar risks. This pool is made up of the premiums everyone pays. When someone makes a claim, the money comes from this pool.
If claims are higher than expected, we may need to increase premiums. This helps ensure there is enough money in the pool to pay claims as promised for everyone, even for those who haven’t made a claim.
Each year, we check how much it costs to provide insurance. Recently, we’ve seen higher claim costs and other expenses. These have increased the overall cost of providing insurance.
We continue to find ways to manage these costs and keep premiums as low as possible.
Income Protection claims have been higher than expected. While the average duration of claims had been increasing for some time, we’re now seeing some early signs of stabilisation. However, the number of new claims being made has continued to rise above our expectation. This increase in claims incidence has led to higher overall costs in providing cover, which affects premium rates.
Across the industry, TPD claims have risen in the past few years. Recent TPD claims experience has remained elevated, consistently exceeding expectations. Mental health and musculoskeletal issues are the main reasons people claim TPD. Because of this, we’ve had to review premium rates to keep the product sustainable.
Crisis Recovery claim costs have been at a high level over a number of years. Advances in medical technology mean people are diagnosed earlier, making them eligible to claim sooner.
Cancer is the top reason for Crisis Recovery claims, followed by heart and nerve-related conditions.
You currently receive a discount on your TPD (Total and Permanent Disablement) cover because you have a high level of cover. To keep our pricing fair and sustainable, we will be removing the large sum insured discount from your TPD premiums. This is because claims on higher cover amounts have been higher than expected. This change will apply from your next policy anniversary. Large sum insured discounts for other benefits will stay the same. This change follows the terms of your policy, which allow us to review and update discounts when needed.
The new premium will apply from your next policy anniversary date. You’ll find this date in your premium change notice.
If your cover is waiting to be reinstated or on a premium waiver, the rate change will apply after this period ends.
We recommend you speak with your financial adviser. They can help you review your cover and suggest ways to manage your premiums while keeping an affordable level of protection for your needs.
If you don’t have an adviser, you can call us on 1800 298 400 or email au.customer@aia.com. We’re here to help.
There are many ways your adviser can help you lower your premiums. Some examples include:
- Turning off automatic benefit indexation (so your cover amount doesn’t increase each year to help keep up with inflation).
- Changing how often you pay your premiums.
- Reducing your cover amount.
- Signing a Non-Smoker’s Declaration if you’ve quit smoking for over 12 months.
- Reviewing any extra loadings if your health or activities have changed.
- Removing optional benefits you no longer need.
- Let us know if you have changed occupation and you are now in a lower-risk job.
- Joining AIA Vitality, our science-backed health and wellbeing program, and engage to receive a discount on your premiums.
- Switching from TPD with an “Own Occupation” definition to TPD with an “Any Occupation” definition.
For Income Protection, your financial adviser may suggest to:
- Shorten your Benefit Period.
- Extend your Waiting Period.
- Switch to Income Protection CORE.
- Pause your cover and premiums for up to 12 months in certain situations (e.g. parental leave, financial hardship).
- Freeze premiums by reducing your cover
Yes, you can apply to increase your cover later. However, you may need to give updated health, lifestyle, and financial details. Depending on your situation, you might not qualify for more cover, or it may cost more.
That’s why we recommend speaking to a financial adviser before making changes.
Before you cancel and replace your cover, it’s important to understand the potential risks.
The cancellation of your insurance policy, and the protection it provides you could be irreversible.
You should consider your health, age and financial position as you may be unable to obtain the same cover or may have to pay substantially more if you require cover in the future.
You may be subject to a health assessment and acceptance by the insurer, and you may not qualify if you choose to take up cover in the future.
After your cover has been cancelled, you will not be able to make a claim for a condition that arises after the cover is cancelled.
We recommend speaking with a financial adviser who can help you review your insurance arrangements. If you don’t have one, we can connect you with a qualified adviser.
Just call us on 1800 298 400 or complete the Find an Adviser form available here.
We review our premiums every year. Premiums may increase to ensure we can continue to support all customers and pay claims.
No. Your policy terms and conditions will not change. As long as you keep paying your premiums, your cover will remain in place.
Your policy was chosen with the help of your financial adviser to suit your needs. Staying with AIA means you’re protected by one of Australia’s largest life insurers.
With AIA, you also get access to:
- Programs that support your health and wellbeing.
- Peace of mind from a trusted insurer (we paid $2.6 billion in claims in 2024).
- 50 years of experience helping people protect themselves and their loved ones.
Copyright © 2025 AIA Australia Limited ABN 79 004 837 861 AFSL 230043. This webpage provides general information only, without considering factors like the objectives, financial situation, needs or personal circumstances of any individual and is not intended to be financial, legal, tax, medical, nutritional, health, fitness or other advice. Before deciding to acquire or continue to hold any product, you should consider the appropriateness of the information, having regard to these factors, and after viewing the Product Disclosure Statement and any relevant product information and terms and conditions available at aia.com.au. Where a new AIA Vitality membership is attached to an eligible Priority Protection or Priority Protection for Platform Investors insurance policy a discount may apply. The discount that applies depends on a range of factors including a combination of the date you commenced your policy and the date you became a member of AIA Vitality. Please note that the savings shown are indicative only and may vary depending on your individual circumstances. Actual savings will depend on a range of factors. For a personalised quote, please speak with your adviser, complete the respective online DocuSign form available at aia.com.au/manage or contact us directly. Make sure you read your PDS and any updates to understand the full details.