Life is unpredictable. No one likes to think about the unexpected, but the reality is that more people are turning to their life insurance policies for support than ever before. AIA Australia’s claims data shows a clear trend – claims are rising, reinforcing just how crucial it is to have the right cover in place.
It could happen to you – why you need life insurance
ARTICLE
14 April 2025
3 min read
3 min read
The rising need for life insurance
Many assume they’ll never need to make a claim, but our latest data tells a different story. Each year, more Australians find themselves relying on life insurance during some of the most challenging moments of their lives. Whether due to illness, injury, or unexpected loss, the numbers continue to climb, highlighting the increasing importance of being prepared.
The top reasons for claims
Understanding why people claim helps paint a clearer picture of the risks we all face. AIA Australia’s latest claims data from 2023 reveals:
- Cancer is the leading cause of Death claims (63% of female claims, 39% of male claims) and Crisis Recovery claims (78% of female claims, 54% of male claims).
- Mental health conditions account for 29% of female and 31% of male Income Protection claims, making it one of the biggest reasons people are unable to work.
- Musculoskeletal issues, accidents and injuries also rank high for Income Protection claims, showing that even everyday health conditions can impact financial stability.
- Cardiovascular diseases are a major contributor, particularly among male claimants, affecting both Death and Crisis Recovery claims.
Critically, these claims aren’t just coming from older individuals. The average age of a claimant is:
- 47 years old for Income Protection claims
- 54 years old for Death claims
- 53 years old for Crisis Recovery claims, and
- 47 years old for Total and Permanent Disability claims
These figures highlight that serious health issues can arise earlier than you might think, reinforcing the importance of having the right cover in place.
The impact of having the right cover
While these statistics may be confronting, they serve as a powerful reminder: no one is immune to life’s uncertainties. Many assume they won’t need to claim, but as the numbers show, the reality is different.
Life insurance provides more than just a payout – it offers financial security when it’s needed most. The right cover ensures that if you’re unable to work due to an illness or injury, your financial commitments, like mortgages, loans, or daily expenses, don’t become a burden. It helps protect your lifestyle, covering lost income, medical costs, and essential bills so you and your loved ones can maintain stability.
Beyond financial support, life insurance provides peace of mind, knowing that if the worst happens, your family is safeguarded. It’s not just about planning for the unexpected, it’s about securing a future with confidence.
Customer story: how AIA helped Graham back on his feet
Meet Graham, a resilient father and high-performance coach who navigated challenges due to a serious injury. Thanks to his AIA life insurance cover, Graham weathered the tough times and received the support he needed to get back on his feet. Watch his story below.
Stories like Graham’s happen every day. No one expects it to be them, but when the unexpected happens, the right cover can mean the difference between financial hardship and security.
Support beyond insurance
Protection isn’t just about having cover in place; it’s about having a financial plan that supports your overall wellbeing. Financial advice helps you determine the right level of cover as part of a tailored plan that protects your income, lifestyle, and future. By working with a financial adviser, you can ensure you will have the right strategy in place to navigate life’s uncertainties with confidence – so you can focus on living a healthier, longer, better life.
So how do you get the right insurance for your needs?
Life insurance is a key part of a comprehensive financial plan, so the best way to assess your protection needs is with the help of a financial adviser who can look at your whole life picture, financial situation, goals and needs.
There are different types of life insurance which provide different types of cover and payments at claim time. Read up on the difference between income protection, total & permanent disablement, and trauma/crisis insurance. If you’re confident about the type and amount of cover you want, an insurance consultant can explain the product, answer questions and provide a quote.
Whether you want insurance as part of a personal, tailored financial plan or you just want the peace of mind that life cover can give you, AIA Financial Wellbeing can help you take that next step.
Disclaimer:
Copyright © 2025 AIA Financial Services Pty Limited (ABN 68 008 540 252, AFSL 231109), trading as AIA Financial Wellbeing. All rights reserved. This information is current at the date of this publication and is subject to change. This provides general information only, without taking into account factors like the objectives, financial situation, needs or personal circumstances of any individual and is not intended to be financial, legal, tax, health, medical, nutritional or other advice. Before acting on the information in this publication, individuals should consider its appropriateness having regard to such factors.
Copyright © 2025 AIA Financial Services Pty Limited (ABN 68 008 540 252, AFSL 231109), trading as AIA Financial Wellbeing. All rights reserved. This information is current at the date of this publication and is subject to change. This provides general information only, without taking into account factors like the objectives, financial situation, needs or personal circumstances of any individual and is not intended to be financial, legal, tax, health, medical, nutritional or other advice. Before acting on the information in this publication, individuals should consider its appropriateness having regard to such factors.
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