Where the life insured under an eligible Priority Protection or Priority Protection for Platform Investors insurance policy (policy) is a member of AIA Vitality at the time that a premium becomes payable in relation to that policy, AIA Australia Limited (AIA Australia or we) will adjust the premium (excluding any amount payable for GST, policy fees, AIA Vitality Contribution fee and government stamp duty) (premium) in accordance with the rules set out in this document (rules). AIA Vitality Starter* members are not eligible for that policy’s AIA Vitality membership discount. The premium adjustments are not guaranteed. We may vary or withdraw these rules at any time.
* AIA Vitality and AIA Vitality Starter are provided by AIA Australia. Access to the AIA Vitality or AIA Vitality Starter program arises under, and is subject to, the AIA Vitality Terms and Conditions. AIA Vitality and AIA Vitality Starter partners, benefits and rewards are subject to change at any time. For the most up-to-date information and to view the AIA Vitality Terms and Conditions see aiavitality.com.au. Additional program partner terms and conditions may apply.
In this document any reference to you means the policy owner.
In this document a Lump Sum Benefit means a benefit under your policy (or under an insurance policy that was cancelled and replaced by the policy, where the terms of the benefit and sum insured have not changed following the cancel-and-replace process) that provides for one lump sum benefit payment.
In this document Income Stream Benefit means a benefit under your policy (or under a policy that was cancelled and replaced by the policy, where the terms of the benefit and sum insured have not changed following the cancel-and-replace process) that provides for periodic income stream benefit payments (including the ‘Income Protection Lump Sum benefit’). Income Stream Benefits include income protection, business expenses or incorporated business expenses benefits.
For the avoidance of doubt, Income Stream Benefits are not Lump Sum Benefits and may be subject to different rules.
Initial discount
- The Premiums that you would otherwise be required to pay from your first Premium due date (if your Policy is a new Policy and the life insured has become a member of AIA Vitality at the time the Policy is issued) or from your next Premium due date after the life insured under your Policy becomes a member of AIA Vitality (if you have an existing Policy at the time you become an AIA Vitality member) will be discounted by an amount of Initial Discount if the life insured under your Policy remains a member of AIA Vitality throughout the year, until:
- If, within 21 days of the AIA Vitality application, the life insured does not meet the eligibility and registration requirements (including if we do not receive a valid unique email address and/or if we do not receive payment details and the first payment for AIA Vitality and/or any other information required to administer the AIA Vitality membership) the AIA Vitality membership will not be activated and the Initial Discount will not be applied. You will be required to pay us the amount of any Initial Discount applied to your policy.
- The Initial Discount in respect of a policy is an amount equal to the Lump Sum Initial Discount. Where the AIA Vitality membership is attached to an eligible Priority Protection or Priority Protection for Platform Investors insurance policy application that is submitted to AIA on or after 14 December 2019, the Lump Sum Initial Discount in respect of Lump Sum Benefits is 17.5%. Where the policy application is submitted prior to 14 December 2019, the Lump Sum Initial Discount in respect of Lump Sum Benefits is 12.5%.
The Income Stream Initial Discount is 7.5% of premium in relation to Income Stream Benefits.
The policy application must include a premium quote with the relevant Lump Sum Initial Discount and/or Income Stream Initial Discount. - Unless otherwise specifically indicated in these rules:
- In the following circumstances, we may, at our discretion, adjust the amount of the Initial Discount up or down to the level of any Premium Flex Discounts (if any) that we previously applied in respect of any other insurance policy:
- For the avoidance of doubt, only one Initial Discount will apply in respect of a policy under these rules.
a. In the case of Premiums that are paid monthly, half-yearly or annually, the next Policy anniversary after the Initial Discount is first applied (provided, in the case of Premiums that are paid monthly, that the Initial Discount has at the date of that Policy Anniversary applied for more than 90 days); or
b. In the case of Premiums that are paid monthly, and in circumstances where the Initial Discount was applied for 90 or fewer days prior to a Policy Anniversary, the second Policy anniversary after the Initial Discount is applied.
b. In the case of Premiums that are paid monthly, and in circumstances where the Initial Discount was applied for 90 or fewer days prior to a Policy Anniversary, the second Policy anniversary after the Initial Discount is applied.
a. If a policy lapses or is cancelled prior to a policy anniversary and is reinstated or a new policy is issued prior to that policy anniversary with AIA Vitality, these rules apply as if the policy did not lapse or was not cancelled. In particular, the discount that applied on the day prior to lapse or cancellation will apply until that policy anniversary; or
b. If an AIA Vitality membership is terminated prior to a policy anniversary and the life insured becomes a member of AIA Vitality again prior to that policy anniversary, these rules apply as if the AIA Vitality membership was not terminated. In particular, the discount that applied on the day prior to termination will apply until that policy anniversary.
b. If an AIA Vitality membership is terminated prior to a policy anniversary and the life insured becomes a member of AIA Vitality again prior to that policy anniversary, these rules apply as if the AIA Vitality membership was not terminated. In particular, the discount that applied on the day prior to termination will apply until that policy anniversary.
a. Where an earlier policy lapses or is cancelled prior to a policy anniversary and is reinstated or a new policy is issued after that policy anniversary;
b. Where an earlier policy lapses or is cancelled prior to a policy anniversary and is reinstated or a new policy is issued prior to that policy anniversary but the life insured does not become a member of AIA Vitality again until after that policy anniversary;
c. Where an AIA Vitality membership is terminated prior to a policy anniversary and the life insured becomes a member of AIA Vitality again after that policy anniversary; or
d. Where the policy replaces an earlier insurance policy as part of a cancel-and-replace process.
b. Where an earlier policy lapses or is cancelled prior to a policy anniversary and is reinstated or a new policy is issued prior to that policy anniversary but the life insured does not become a member of AIA Vitality again until after that policy anniversary;
c. Where an AIA Vitality membership is terminated prior to a policy anniversary and the life insured becomes a member of AIA Vitality again after that policy anniversary; or
d. Where the policy replaces an earlier insurance policy as part of a cancel-and-replace process.
Premium flex
- The premiums that you would otherwise be required to pay from the time that the Initial Discount stops being applied (either your first or a subsequent policy anniversary, depending on when the Initial Discount was first applied) will be discounted until the following Policy Anniversary by an amount of Premium Flex Discount if the policy is in-force, and unless otherwise specifically indicated in these rules, the life insured under your policy was an AIA Vitality member at the most recent policy anniversary before Premium Flex was applied (except in relation to the first policy anniversary on which the Premium Flex is being applied) and remains an AIA Vitality member on the policy anniversary when the Premium Flex is applied.
- The amount of Premium Flex Discount in respect of a premium is equal to the amount of the Lump Sum Premium Flex Discount and the amount of the Income Stream Premium Flex Discount for that premium.
- The amount of the Lump Sum Premium Flex Discount for a premium is equal to the amount of that premium referable to all Lump Sum Benefits payable annually as at that policy anniversary multiplied by the relevant Applicable Percentage.
a. The Applicable Percentage referable to the first premium on which the Lump Sum Premium Flex Discount is applied is the Lump Sum Initial Discount.
b. For the purposes of calculating a Lump Sum Premium Flex Discount for a premium, the Applicable Percentage is equal to the Applicable Percentage that applied on the previous policy anniversary increased by the absolute Percentage Change (if the Percentage Change is positive) or decreased by the absolute Percentage Change (if the Percentage Change is negative) in accordance with the following table based on the life insured’s AIA Vitality Status on that policy anniversary.
| AIA Vitality Status | % Change | Maximum Discount |
|---|---|---|
| Bronze | -2.50%
|
20% |
| Silver | -1.25% | |
| Gold |
0.00% | |
| Platinum | +1.00% |
c. If the policy has qualified for AIA Healthier Life Reward (available to new business applications effective 16 April 2023), the Premium Flex Discount will reduce to no lower than half of the Lump Sum Initial Discount, that is 8.75% for Lump Sum Benefits. Continued AIA Vitality membership is required to maintain the Healthier Life Reward benefits.
For full details of the benefits, qualifying criteria and terms and conditions of the Healthier Life Reward, please refer to the Priority Protection PDS.
4. For the avoidance of doubt, a negative Percentage Change means that the Applicable Percentage is decreased by the Percentage Change relative to the Applicable Percentage that applied on the previous policy anniversary and a positive Percentage Change means that the Applicable Percentage is increased by the Percentage Change relative to the Applicable Percentage that applied on the previous policy anniversary.
For example, if the Applicable Percentage was 17.5% on the last Policy anniversary and, a year later, the life insured’s AIA Vitality Status is Platinum, the Applicable Percentage will be increased to 18.5%.
5. The amount of the Income Stream Premium Flex Discount for a premium is equal to the amount of that premium referable to all Income Stream Benefits payable annually as at that policy anniversary multiplied by the relevant Applicable Percentage.
a. The Applicable Percentage referable to the first premium on which the Income Stream Premium Flex Discount is applied is the Income Stream Initial Discount.
b. For the purposes of calculating an Income Stream Premium Flex Discount for a premium, the Applicable Percentage is equal to the Applicable Percentage that applied on the previous policy anniversary increased by the absolute Percentage Change (if the Percentage Change is positive) or decreased by the absolute Percentage Change (if the Percentage Change is negative) in accordance with the following table based on the life insured’s AIA Vitality status on that policy anniversary.
b. For the purposes of calculating an Income Stream Premium Flex Discount for a premium, the Applicable Percentage is equal to the Applicable Percentage that applied on the previous policy anniversary increased by the absolute Percentage Change (if the Percentage Change is positive) or decreased by the absolute Percentage Change (if the Percentage Change is negative) in accordance with the following table based on the life insured’s AIA Vitality status on that policy anniversary.
| AIA Vitality Status | % Change | Maximum Discount |
|---|---|---|
| Bronze | -2.50%
|
20% |
| Silver | -1.25% | |
| Gold |
0.00% | |
| Platinum | +1.00% |
c. If the policy has qualified for AIA Healthier Life Reward (available to new business applications effective 16 April 2023), the Premium Flex Discount will reduce to no lower than half if the Income Stream Initial Discount, that is 3.75% for Income Stream Benefits. Continued AIA Vitality membership is required to maintain the Healthier Life Reward benefits.
For full details of the benefits, qualifying criteria and terms and conditions of the Healthier Life Reward, please refer to the Priority Protection PDS.
6. For the avoidance of doubt, a negative Percentage Change means that the Applicable Percentage is decreased by the Percentage Change relative to the Applicable Percentage that applied on the previous policy anniversary and a positive Percentage Change means that the Applicable Percentage is increased by the Percentage Change relative to the Applicable Percentage that applied on the previous policy anniversary.
For example, if the Applicable Percentage was 7.5% on the last Policy anniversary and, a year later, the life insured’s AIA Vitality status is Platinum, the Applicable Percentage will be increased to 8.5%.
7. The premiums relating to Lump Sum Benefits or Income Stream Benefits cannot be discounted by more than the applicable Maximum Discount, as set out in the tables above.
8. Where:
a. you paid us a premium in respect of a period; and
b. subsequently, there is a change in circumstances (e.g. there is a change in the life insured’s
AIA Vitality Status or we determine that a discount should have been applied to that premium in accordance with these rules) that would result in the premium in respect of that period being reduced further, we may choose to carry the discount forward and reduce your next premium by the difference between the premium in (a) above and the lower premium in (b) above
b. subsequently, there is a change in circumstances (e.g. there is a change in the life insured’s
AIA Vitality Status or we determine that a discount should have been applied to that premium in accordance with these rules) that would result in the premium in respect of that period being reduced further, we may choose to carry the discount forward and reduce your next premium by the difference between the premium in (a) above and the lower premium in (b) above
9. Unless otherwise specifically indicated in these rules:
a. If a policy lapses or is cancelled prior to a policy anniversary and is reinstated or a new policy is issued prior to that policy anniversary with AIA Vitality, these rules apply as if the policy did not lapse or was not cancelled. In particular, the Premium Flex Discount that applied on the day prior to lapse or cancellation will apply until that policy anniversary; or
b. If an AIA Vitality membership is terminated prior to a policy anniversary and the life insured becomes a member of AIA Vitality again prior to that policy anniversary, these rules apply as if the AIA Vitality membership was not terminated. In particular, the Premium Flex Discount that applied on the day prior to termination will apply until that policy anniversary.
b. If an AIA Vitality membership is terminated prior to a policy anniversary and the life insured becomes a member of AIA Vitality again prior to that policy anniversary, these rules apply as if the AIA Vitality membership was not terminated. In particular, the Premium Flex Discount that applied on the day prior to termination will apply until that policy anniversary.
Premium discounts generally
If you change the frequency of your premium payments in relation to your policy with us, the premium discounts you are entitled to may change. We will determine any premium discount changes reasonably in accordance with internal business rules.
If your policy replaced one or more eligible insurance policies under a cancel-and-replace process as agreed by us, the premium discounts you are entitled to may change. We will determine any premium discount changes reasonably in accordance with internal business rules.
Any premium changes will remain at our sole discretion.
Examples
Scenario 1
AIA Vitality is associated with an eligible insurance policy from policy inception (after 14 December 2019)
On 20 December 2019, John purchases an eligible insurance policy with a yearly premium frequency, insuring himself for a life cover benefit ($600 level Premium) and an income protection benefit ($1,200 level Premium). John would ordinarily need to pay $1,800 to keep his policy going.
At policy inception:
John will receive a Lump Sum Initial Discount equal to 17.5% on his life cover premiums and an Income Stream Initial Discount equal to 7.5% on his income protection premiums for the first year. His total initial yearly premium will therefore be:
$600 x (100% – 17.5%) + $1,200 x (100% – 7.5%) =
$495 + $1,110 = $1,605
John progresses to Silver AIA Vitality status by the first policy anniversary.
On the first policy anniversary
John will receive a Lump Sum Premium Flex Discount of 16.25% (17.5% – 1.25%) on his life cover premium and an Income Stream Premium Flex Discount of 6.25% (7.5% – 1.25%) on his income protection premium. The premium due on the first policy anniversary will therefore be:
$600 x (100% – 16.25%) + $1,200 x (100% – 6.25%) =
$502.50 + $1,125.00 = $1,627.50
John progresses to Gold AIA Vitality status by the second Policy anniversary.
On the second policy anniversary
John will receive a Lump Sum Premium Flex Discount of 16.25% (16.25% + 0%) on his life cover premium and an Income Stream Premium Flex Discount of 6.25% (6.25% + 0%) on his income protection premium. The premium due on the second policy anniversary will therefore be:
$600 x (100% – 16.25%) + $1,200 x (100% – 6.25%) =
$502.50 + $1,125.00 = $1,627.50
John progresses to Platinum AIA Vitality status by the third policy anniversary and remains at Platinum status for the next three years.
On the third policy anniversary
John will receive a Lump Sum Premium Flex Discount of 17.25% (16.25% + 1%) on his life cover premium and an Income Stream Premium Flex Discount of 7.25% (6.25% + 1%) on his income protection premium. The premium due on the third policy anniversary will therefore be:
$600 x (100% – 17.25%) + $1,200 x (100% – 7.25%) =
$496.50 + $1,113.00 = $1,609.50
On the fourth policy anniversary
John will receive a Lump Sum Premium Flex Discount of 18.25% (17.25% + 1%) on his life cover premium and an Income Stream Premium Flex Discount of 8.25% (7.25% + 1%) on his income protection premium. The premium due on the fourth policy anniversary will therefore be:
$600 x (100% – 18.25%) + $1,200 x (100% – 8.25%) =
$490.50 + $1,101.00 = $1,591.50
On the fifth policy anniversary
John will receive a Lump Sum Premium Flex Discount of 19.25% (18.25% + 1%) on his life cover premium and an Income Stream Premium Flex Discount of 9.25% (8.25% + 1%) on his income protection premium. The premium due on the fifth policy anniversary will therefore be:
$600 x (100% – 19.25%) + $1,200 x (100% – 9.25%) =
$484.50 + $1,089.00 = $1,573.50
This example assumes that premiums would otherwise remain level under John’s policy (and that benefit indexation does not apply) and that John otherwise remains eligible to receive the discounts discussed in this example.
Scenario 2
AIA Vitality is associated with an eligible insurance policy after policy
Jane insures herself under three different eligible insurance policies with AIA Australia including a life cover policy (Lump Sum Benefit), an income protection policy (Income Stream Benefit) and a crisis policy (Lump Sum Benefit). Jane took out each of the policies at different times (but each was taken out after 14 December 2019) and pays her premiums at different frequencies.
The policy details are as follows:
- Life cover policy – commencement date of 1 February 2020 and Jane pays the premiums monthly
- Income protection policy – commencement date of 1 April 2020 and Jane pays the premiums monthly
- Crisis policy – commencement date of 1 April 2020 and Jane pays the premiums annually
Initial discount
Jane is entitled to a Lump Sum Initial Discount equal to 17.5% on her life cover policy and her crisis policy as these are both Lump Sum Benefits. Jane is also entitled to an Income Stream Initial Discount equal to 7.5% on her income protection policy as it is an Income Stream Benefit.
Jane’s Lump Sum Initial Discount will take effect from her next premium due date on each of her life cover policy and her crisis policy (being her next monthly premium on her life cover policy and her next annual premium on her crisis policy).
Jane’s Income Stream Initial Discount will take effect from her next premium due date of her income protection policy (being her next monthly premium).
Premium flex
On 1 February 2021, Jane’s life cover policy goes through policy anniversary. As Jane would have been entitled to an Initial Discount for this policy for less than 90 days (from the next premium due date to policy anniversary), Jane will continue to get the Initial Discount for another policy year. On 1 February 2022, Jane will be entitled to a Premium Flex Discount on her life cover policy.
On 1 April 2021, Jane’s income protection policy goes through policy anniversary. Jane will be entitled to a Premium Flex Discount on her income protection policy as she has been an AIA Vitality member for longer than 90 days.
Jane’s crisis policy also goes through policy anniversary on 1 April 2021. As Jane pays her crisis policy annually, she will be entitled to an Initial Discount of 17.5% on her next premium due date and will enjoy that discount until her next policy anniversary (being
1 April 2022) when she will be entitled to a Premium Flex Discount.
This example assumes that Jane remains eligible to receive the discounts discussed in this example.
Copyright © 2023 AIA Australia Limited ABN 79 004 837 861 AFSL 230043 (AIA Australia). All rights reserved. The life insurance policies relating to Priority Protection and Priority Protection for Platform Investors are issued by AIA Australia. 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 situations, 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, you should read the relevant Product Disclosure Statement carefully and assess whether the information is appropriate for you and consider talking to a financial adviser before making an investment decision. The Priority Protection PDS is available from your financial adviser, by calling 1800 333 613 or from aia.com.au/life. AIA Vitality is available with eligible products issued by AIA Australia Limited. For the most up to date information on the terms and conditions of AIA Vitality partners, and to view the benefits and rewards and AIA Vitality Terms and Conditions and Benefit Guides, AIA Australia has prepared a Target Market Determination which describes the class of consumers that comprise the target market for these products. The Target Market Determination can be sourced at aia.com.au/tmds.
How do I get AIA Vitality
Get protected and take out an eligible AIA insurance policy.
