Income Insurance Cover

(Post 1 October 2021)

Proposed changes to your cover

If you hold Cover under Integrity’s Here For You Policy (Integrity policy), your benefit cover amount will be transferred to an AIA Priority Protection Policy (AIA policy) when your policy is transferred, or 'migrated', from Integrity to AIA under the Scheme.
 
Subject to confirmation by the Federal Court of Australia, the retail life insurance business of Integrity Life Australia Limited (Integrity) will transfer to AIA Australia Limited (AIA) by way of a Scheme under Part 9 of the Life Insurance Act 1995 (Cth).
 
AIA Priority Protection is a comparable product to your transferring Integrity policy. AIAA and ILAL have sought to minimise the extent of the changes to the cover provided by carefully mapping the existing insurance benefits of your policy to AIA Priority Protection’s insurance benefits.
 
If the Scheme transfer goes ahead, you will receive similar coverage and features under your new AIA Priority Protection policy. However, there are some differences in coverage between the two policies, and we recommend you read the AIA Priority Protection Product Disclosure Statement and Policy Document (PDS) in full to understand your new policy's terms.
 
 
To help you better understand the changes that will occur to your cover (assuming the Scheme is confirmed by the Court), please read the below summary of key differences between your Integrity Critical Illness cover and the AIA Priority Protection Crisis Recovery Cover.
 
This is a summary only. If you have any questions in relation to changes to your cover, you can contact us on 1800 333 613 between 9am and 5pm (AEDT/AEST), Monday to Friday or, via email at au.integritypart9@aia.com

The Waiting Period is the number of days at the beginning of a period of disablement in which no Total or Partial Disablement benefit is payable.
 
Integrity – Here For You
 
Under your Integrity policy you were able to select a waiting period of 30 days. 60 days, 90 days, 180 days, 1 year or 2 years.
 
AIA – Priority Protection
 
The AIA policy does not offer a 180-day or 1 year waiting period. If you held a policy with a 180-day or 1 year waiting period, upon transfer to AIA your waiting period will be reduced to a 90-day waiting period (this is the nearest equivalent waiting period available). Please note higher premiums apply to shorter waiting periods.
 
The AIA policy allows for you to return to work at any time during the Waiting Period without the Waiting Period recommencing, providing the following conditions are met:
Occupation Category Waiting Period
  14 days, 30 days, 60 days or 90 days 1 year or 2 years
A1, A2, M, A3, A4 - You are Totally Disabled or Partially Disabled for the duration of the Waiting Period. - You are Totally Disabled; or Partially Disabled for the duration of the Waiting Period, and
- Any return to Full-Time Employment was for 10 or less consecutive days.
B1, B2, C1, C2, D and E - You are Totally Disabled for at least seven out of 12 consecutive days during the Waiting Period and
- You are Totally Disabled or Partially Disabled for the balanced of the Waiting Period. 		- You are Totally Disabled for at the least seven out of 12 consecutive days during the Waiting Period
- You are Totally Disabled or Partially Disabled for the balance of the Waiting Period, and
- Any return to Full-Time Employment was for 10 or less consecutive days.
If you would like further information on AIA Occupation Categories, please see the AIA PDS AIA Priority Protection – Version 29 12/05/2024 and Priority Protection - Incorporated by Reference.

Integrity – Here For You
 
Under your Integrity policy you were able to increase your sum insured once in any 12-month period when your monthly earnings increased to a maximum of the lesser of:
 
  • 15% of your sum insured at the Cover start date, or
  • Up to 50%, 60% or 70% of the increase in your monthly earnings, depending on your chosen Income Replacement Ratio at the Cover start date,
The minimum increase available is $250 per month.
 
The total of all increases cannot exceed the maximum Income Insurance Amount for the Income Replacement Ration selected at the Cover start date.
 
AIA – Priority Protection
 
The AIA policy provides a Salary Increase Benefit that allows you to increase your sum insured by the lesser of 15% of the Sum Insured and $2,500 when you receive a permanent increase in your salary package, without providing further evidence of your health or insurability.
 
There are limitations that apply to the Salary Increase Benefit. Full details of the limitations are available in the AIA Priority Protection PDS and Incorporated by Reference document available AIA Priority Protection – Version 29 12/05/2024 and Priority Protection - Incorporated by Reference.

There are standard policy exclusions which are different under your AIA policy as compared to your Integrity policy.
 
AIA will not pay a disablement benefit claim:
 
  • where disablement is due to intentional self-inflicted injury or any such attempt by you;
  • where disablement is due to your participation in criminal activity or resulting from incarceration;
  • for any period you are incarcerated arising from your participation in criminal activity;
  • where disablement is due to you engaging in or taking part in active military service in the armed forces of any country after cover commencement; or
  • for normal pregnancy, uncomplicated childbirth or miscarriage.

Integrity – Here For You
 
Although it is possible to claim an Income benefit under the Integrity policy for a needlestick injury, this feature under the AIA policy allows for a benefit to be payable if there has been a loss of income even where the insured is still working, (i.e. the insured has disclosed their condition to their patients and as a result have lost business). This is not the case under the Integrity policy.
 
AIA – Priority Protection
 
The AIA policy pays a monthly benefit if your earnings are reduced due to you being accidently infected with HIV, AIDS or Hepatitis B or C as a result of a needlestick or splash injury whilst performing duties of your normal occupation.

There are differences in the claim offsets applied under your Integrity policy and the AIA policy.
 
AIA – Priority Protection
 
If you make a claim for a Total Disablement or Partial Disablement benefit, the benefit amount you are entitled to receive will be reduced / offset by:
 
  • Any payments received from your employer over the period of sickness or injury including sick pay.  This does not include payments received due to annual or long service leave.
  • Any income, profits or other remuneration that the Life insured continues to receive or is entitled to receive from their current or former business or businesses or any entities related to that business or businesses.
  • Any Social Security payments or other government grants you receive or become entitled to in respect of your injury or sickness.
  • Any payments you receive or become entitled to in respect of injury or sickness under any Australia state, territory or the Commonwealth, or as damages under common law (whether or not modified by statute), for loss of income, loss of earning capacity or any other economic loss (including any benefits or payments for work injury damages) whether paid as a lump sum or not.  Examples include but not limited to, workers compensation and motor vehicle claim.
  • Any payments you receive in respect of your injury or sickness from another Individual or Group income replacement insurance policy, salary continuance or mortgage repayment cover.

Integrity – Here For You
 
Under your Integrity policy, premiums are not waived during Waiting Period.
 
AIA – Priority Protection
 
Should you meet the eligibility criteria to make a claim and receive a claim payment, under your AIA policy, premiums during the Waiting Period will be reimbursed.

Integrity – Here For You
 
Under your Integrity policy, the increasing of claim payments for inflation, were included in your premium, and your claim payments were indexed on your policy anniversary date.
 
AIA – Priority Protection
 
Your AIA Priority Protection policy will continue to provide this benefit (referred to as Claim Escalation benefit) however, this benefit is an optional benefit with an additional premium.  AIA Priority Protection indexes claim payments by the CPI increase after a monthly benefit has been paid for 12 consecutive months.
 
The Claim Escalation benefit will automatically be added to your policy as part of the transfer.
 
However, you can remove this optional benefit at any time by contacting AIA.  

Integrity – Here For You
 
Your Integrity policy restricted your Benefit Period to a maximum of two years after you turn 60.
 
AIA – Priority Protection
 
There is no such restriction on the AIA policy you are being transferred to.

Integrity – Here For You
 
If your Integrity policy is transferred to an AIA policy, with your existing cover amount, you will no longer be eligible for the Total Disability Top Up (if you had selected this option on your application for your Integrity policy.
 
The Total Disability Top Up under the Integrity policy increased the amount of your Income Insurance payment for a maximum of the first six months on an Income Insurance claim.
 
AIA – Priority Protection
 
For 2 year, 5 year and To Age 65 Benefit Periods, your AIA policy will allow up to 70% of your Pre-disablement income.

Integrity – Here For You
 
There are differences in the definitions of Total Disablement and Partial Disablement between your Integrity policy and the AIA Priority Protection policy you are being transferred to.
 
AIA – Priority Protection
 
The AIA Priority Protection policy includes a definition of Total Disablement as set out in the tables in the AIA Priority Protection PDS.
 
If you would like further information on AIA Occupation Categories, please see the AIA PDS AIA Priority Protection – Version 29 12/05/2024 and Priority Protection - Incorporated by Reference.

Monthly Earnings under your Integrity policy or Income as it is referred to under AIA Priority Protection have different definitions, this may affect your any disability payment determination.
 
AIA Priority Protection defines Income for Income Protection CORE as:
 
  • Self-employed Person
    Income that you generate and receive from your business or practice due to your personal exertion or activities, less your share of necessarily incurred business expenses. Any voluntary superannuation contributions will also be included.
    This does not include income which is not derived from your personal exertion or activities such as dividends, interest, rental income or proceeds from the sale of assets or royalties.
  • Employed Person
    The total pre-tax remuneration paid to an Employed person including salary, voluntary superannuation contributions, commission, regular bonuses, overtime, and fringe benefits.
    This does not include income which is not derived from your personal exertion or activities, such as dividends, interest, rental income or proceeds from the sale of assets, or royalties.
    No Employer Super Guarantee Contributions may be included within the definition of Income.

Integrity – Here For You
 
Your Integrity policy determines your Pre-disablement Income for your cover by calculating the Monthly Earnings for the consecutive 12-month period prior you become Totally or Partially Disabled.
 
AIA – Priority Protection
 
The AIA policy determines your Pre-disablement Income for Agreed Value cover by calculating the highest average monthly Income for any financial year since the date two years before the Commencement Date of the Income Protection benefit up to the commencement of disablement.
 
It is important to note that whether the difference in these terms increase or decrease your Pre-disablement Income will depend on your personal income circumstances at the time of your claim.

Integrity – Here For You
 
Should you suffer a relapse of Total or Partial Disability, the Integrity policy allows for the Waiting Period to be waived, and the claim is treated as a continuation of the previous claim, after a monthly benefit has been paid if the relapse occurs:
 
  • Within 6 months of returning to work on the same employment basis (full-time or part-time) that was worked prior to being Totally or Partially Disabled, for policies with Benefit Periods of 2 years or 5 years; or
  • Within 12 months of returning to work on the same employment basis (full-time or part-time) that was worked prior to being Totally or Partially Disabled, for policies with Benefit Periods to age 65 or to age 70.
AIA – Priority Protection
 
Recurrent Disablement - Your AIA Priority Protection policy allows for the waiting period to be waived and to recommence benefit payments immediately, if after payment of a disability benefit, you return to paid, full pre-disability duties and hours, and a disablement due to the same or related cause reoccurs within 12 months.

Your AIA policy will provide disability payments based on the lower of your sum insured and 70% of your Pre-Disablement Income. Please note, your Partial Disablement payments may be lower than 70% under your AIA Priority policy if the sum insured you had under your Integrity policy is less than 70% of your current income.

Integrity – Here For You
 
Your Integrity – Here For Your policy has no minimum premium requirement.
 
AIA – Priority Protection
 
If after transfer to your AIA Priority Protection policy the new premium calculated is under $300, AIA will waive the minimum premium requirement of $300 per annum.
 
Please note if you request an alteration of any kind to your Policy, for example an increase or decrease in your sum insured, the AIA minimum premium of $300 per annum will be enforced.

Integrity – Here For You
 
Under the Integrity – Here For You policy, you can elect to pay your premiums either Monthly or Annually, at no extra cost.
 
AIA – Priority Protection
 
Offers Monthly, Half-yearly and Yearly premium frequencies, which are subject to a premium frequency charge applying to the premium and policy fee.  The charge is calculated as a percentage of the yearly premium, being 0% for Yearly, 5% for Half-yearly and 8% for Monthly.

AIA offers the same premium options as Integrity – Here For You.
 
However, the names (or labels) of AIA premium options have recently been updated in line with the Council of Australian Life Insurers (CALI) recommendations.
Integrity – Here For You Premium Labels AIA Priority Protection Premium Labels
Stepped premiums Variable age-stepped premiums
Level premiums Variable premiums

As part of the transfer your premium rates may alter based on the Premium Structure you are transferred into under the AIA policy.
 
  • Variable age-stepped

    If all cover under your Integrity – Here For You policy has a ‘stepped’ premium structure, your policy will be transferred to AIA with the same sum insured and will be based on ‘variable age-stepped’ premiums.

  • Variable

    If all cover under your Integrity – Here For You policy has a ‘level’ premium structure, your policy will be transferred to AIA with the same premium rates and same sum insured and will be based on ‘Variable’ premiums.

    Please note if you request an alteration of any kind to your Policy, for example an increase or decrease in your sum insured, your premium rates will change from Integrity – Here For You’s Level premium rates to AIA’s Variable premium rates and the amount of premium you pay may change (and may increase).

    Both AIA and Integrity may increase the premium rates, regardless of whether you have Stepped Premium or Level Premium but, and you we will give you at least 30 days’ notice in writing. Premium rates may not be altered individually and your policy cannot be singled out for an increase.

  • Combination of Variable and Variable age-stepped

    Integrity – Here For You

    If you have a combination of Level and Stepped premium structures under your Integrity – Here For You policy, all covers will be transferred to AIA’s Variable premium.

    This means that when your policy is migrated to AIA, your premiums will be recalculated on AIA’s current Variable rates, based on the age you were when your Integrity – Here For You policy commenced.

    AIA – Priority Protection

    The AIA policy does not allow a combination of Premium Structures on multiple covers held under the one policy.

The Premium and Cover Pause benefit is available to support customers who are experiencing financial hardship. For AIA policies with a monthly premium, you can apply to pause premiums and cover for a period of 3, 6, or 12 months and for yearly premium frequency you can request a 12 month pause. However, the Premium and Cover Pause can only start on the next premium due date.
 
A full list of Premium and Cover Pause benefit conditions is available in the AIA Priority Protection PDS and Incorporated by Reference document available AIA Priority Protection – Version 29 12/05/2024 and Priority Protection - Incorporated by Reference

The Premium Freeze benefit allows you, at each Policy Anniversary, to elect to pay the same premium for the following Policy year as you paid for the previous Policy year. You must be at least 35 years old and have a Variable age-stepped premium structure to exercise a Premium Freeze.
 
If you elect to apply the Premium Freeze benefit your sum insured will be decreased the next Policy year to match the premium with the amount you paid in the previous Policy year.
 
A full list of Premium Freeze benefit conditions is available in the AIA Priority Protection PDS and Incorporated by Reference document available AIA Priority Protection – Version 29 12/05/2024 and Priority Protection - Incorporated by Reference

Contact us

You can also contact your adviser or contact us directly on:

Call us directly:

Between 9am and 5pm (AEST/AEDT) Monday to Friday 1800 333 613

Send us email:

au.integritypart9@aia.com

 

Send us mail:

PO Box 6111, Melbourne
VIC 3004