Priority Protection

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Priority Protection is our suite of products that caters for a range of insurances needs.
 
There are four Ordinary Plans:
 
  • Life Cover Plan
  • Crisis Recovery Stand Alone Plan
  • Income Protection Plan
  • Business Expenses Plan
 
And two kinds of Superannuation Plans: 
 
  • Superannuation Life Cover Plan
  • Superannuation Income Protection Plan

Life Cover Plan

Life Cover Plan allows you to choose from a range of Stand Alone and Rider Benefits such as TPD, Crisis Recovery, Forward Underwriting or Repayment Relief, Waiver of Premium.

Crisis Recovery Stand Alone Plan

Under this plan, you can choose from a range of Stand Alone and Rider benefits including Crisis Extension Crisis Reinstatement, TPD Cover, Family Protection, Forward Underwriting and Business Safeguard Forward Underwriting.

Income Protection plan

Under this plan, you can choose: Income Protection CORE

Then you can add other benefits. You can choose from the many Rider benefits depending on which type of IP Cover you selected such as Retirement Optimiser, Claim Escalation, Day 1 Accident, Business Expenses, PLUS Optional.

Business Expenses Plan

Then you can add Day 1 Accident rider benefit.

For information on how to position and sell our products to your clients, please visit our Resource Library.

Crisis Extension – Providing flexible crisis options

 
Crisis Extension is a carefully designed product that complements our highly rated Crisis Recovery product. Through Crisis Extension, your clients will have the choice of flexible cover which offers them and their family additional cover for longer.

 
With Crisis Recovery, your clients are paid a lump sum if they are diagnosed with or undergo a Crisis Event. Crisis Events are medically defined as part of our Product Disclosure Statement (PDS) and include cancer, heart attack and stroke; medical procedures such as coronary artery angioplasty; and many other serious illnesses and injuries. This Crisis Recovery lump sum payment helps with the financial burden of the medical condition and provides your clients with peace of mind while they recover from an illness or injury.
 
However, it is important to note that this is a once-off payment, and if your clients’ condition progresses or worsens, they will no longer have access to the same level of cover. What this means is that a full Crisis Recovery payment as a once-off pay-out may leave them exposed and vulnerable to future risks of not being well enough to obtain insurance cover if a more serious event occurs or if their medical condition deteriorates further.
 
Crisis Extension addresses this by offering your clients a more personalised and flexible long-term cover solution. Depending on the circumstances, having Crisis Extension in addition to Crisis Recovery and Crisis Reinstatement could allow for multiple claims, and keep your clients covered even after the Crisis Recovery claim payment has been made.

 
Meet AIA Priority Protection client Ryan. At 45 years old, Ryan takes $150,000 of Crisis Recovery with Crisis Reinstatement and an AIA Vitality membership (no other discounts applied). Ryan is a Marketing manager making him occupation rating A1. He has the option to take up any additional amount (he can decide how much) for Crisis Extension so he adds $150,000 in Crisis Extension (this includes Crisis Reinstatement and Crisis Buy-Back).
 
His premium for the year for both covers is, Crisis Recovery Stand Alone $831.60 per year and Crisis Extension $483.86 per year. Crisis Reinstatement $49.50. Quote as at 13 July 2021. Then, life happens.
In scenario 1 – Ryan is diagnosed with a cancer that evolves.
 
As shown above Ryan takes out initial cover of $150,000 in Crisis Recovery and $150,000 in Crisis Extension.
 
Ryan is diagnosed with prostate cancer, stage 1.
 
Crisis Recovery claim paid
 
He receives a claim pay-out of $150,000 from Crisis Recovery as a result of Ryan claiming his total $150,000 sum insured at the early stage (stage 1) of the cancer.
 
Two years later, Ryan’s cancer recurs, spreading to other parts of his body.
 
Because he reinstated his Crisis Recovery cover after the first full claim, a partial $15,000 claim is available for the second cancer event (10% of sum insured available after reinstatement.). Then with the progression to stage 4 which meets the definition of Advanced Invasive Cancer, he is eligible for the full $150,000 payment of the Crisis Extension benefit payment.
 
Without Crisis Extension, Ryan would have received a Crisis Recovery benefit for the Stage 1 cancer diagnosis, but only a partial benefit when the cancer recurred, leaving him financially vulnerable at a time when he couldn’t afford it to be. Alternatively, if he had taken $300K of Crisis Recovery, his premium would have been around 14% more expensive. (The above quote $1,364.96 vs $1,585.98, Crisis Recovery Stand Alone $1,496.88 and Crisis Reinstatement $89.10, Quote as at 13 July 2021).
 
If you would like to learn more about our Crisis Extension benefit, download our Technical and Position flyer, or reach out to your AIA Client Development Manager or Associate.

Income Protection – IP CORE

 
IP CORE is AIA Australia’s (AIAA) income protection product. From October 2021 it is our only product available for new business as the industry adapts to the new guidelines from the Australian Prudential Regulation Authority (APRA) and the Actuaries Institute. The product was designed to deliver more stable premiums.
 
With IP CORE, your clients are paid a monthly benefit if they are Totally or Partially Disabled solely due to sickness or injury, as defined by the Product Disclosure Statement (PDS). The IP CORE monthly benefit payment helps with the financial burden while your clients recover.
 
The Income Replacement Ratio is lower than the income products available in market until October 2021.
Currently IP CORE policies are guaranteed renewable like traditional IP contracts.

 
Meet AIA Priority Protection client David. At 43 years old, David who has a base salary of $150,000 p.a (i.e. $12,500 pm) from his occupation as a project manager.
 
Because of affordability concerns, David’s financial adviser helped him secure IP CORE with the 70% / 60% benefits, 30 day wait period and 5-year Benefit period to suit his circumstances.
 
This turns out to be great advice, as soon after cover commences David suffers a work injury and is unable to continue with work. The injury matches the definition of an injury as defined in the PDS. While David is Totally Disabled, he can claim on his IP CORE benefit to support his recovery and his family.
 
David makes a full recovery and returns to work in a full-time capacity before the monthly benefit reduces from 70% to the 60% income replacement ratio occurs, and the switch to a Suited Occupation based definition of disability.
 
If you would like to learn more about IP CORE, watch the Income Protection CORE Video, download our Technical and Positioning document, read the adviser IP CORE FAQs or reach out to your AIA Client Development Manager or Associate.