Income Insurance Cover

(Prior 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 policy 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 policy insurance benefits.
 
If the Scheme transfer goes ahead, you will receive similar coverage and features under your new AIA policy. However, there are some differences in coverage between the two policies, and we recommend you read the AIA policy Product Disclosure Statement (PDS) in full to understand your new policy's terms.
 

Summary of key differences

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 policy and the AIA policy.
 
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
Integrity’s Here For You cover AIA Priority Protection cover
Income Insurance cover without:
- Care Support Package; and
- Specified Injuries and Specified Medical Conditions Benefit		 Advantage Optional
Income Insurance cover with:
- Care Support Package; or
- Specified Injuries and Specified Medical Conditions Benefit 		PLUS Optional
You will receive similar coverage and features under your new AIA policy. 
 
The following is a summary of some of the key differences between your Income Insurance Cover with Integrity and the cover you will be provided with by AIA to help you better understand your new cover.

The AIA policy provides additional / enhanced features under Income Protection cover compared to the Income Insurance Cover provided under your Integrity policy.
 
In Built Features (Base Cover – Income Protection):
Severity benefit AIA pays an additional 1/3rd of the insured monthly benefit if AIA have been paying a benefit for more than six consecutive months after the end of the Waiting Period, and you are Totally Disabled where you cannot perform at least two Activities of Daily Living and you are in constant care of another adult.
Death benefit If you pass away, AIA will pay a lump sum equal to six times your insured monthly benefit up to a maximum of $60,000.
Terminal Illness benefit If you are diagnosed with a Terminal Illness while you are receiving an Income Protection benefit AIA will make an advance payment on your Death benefits.
Needlestick Injury benefit (Occupation Category M only) AIA will pay a monthly benefit if your earnings are reduced due to you being accidentally 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.

Note, although it is possible to claim an income benefit under the Integrity’s Here For You terms for a needlestick injury, this feature allows for a benefit to be payable if there has been a loss of income even where the insured is still working (i.e. If they have disclosed their condition to patients and lost income as a result).
Rehabilitation expenses AIA will reimburse or cover the cost of your participation in a pre-approved rehabilitation program, occupational services, aides, equipment and /or modifications for up to a maximum of 12 times your insured monthly benefit.
Additional In-built Features - (if PLUS Optional is applicable)
No claim bonus AIA will increase your insured monthly benefit at no additional cost to you for up to 12 months whilst on claim if you have not made a claim in at least three years. This benefit is payable only once per policy.
Relocation benefit AIA will reimburse the cost of a single standard economy airfare to Australia up to three times your Insured Monthly Benefit, if you are Totally Disabled for over 90 days while you are outside of Australia.
Rehabilitation Incentive benefit AIA will pay a lump sum if you return to Full-time Employment for six consecutive months after attending an approved rehabilitation program.

If you hold Integrity’s Income Insurance Cover inside your super, your payment details may need to be updated to ensure cover continues under the AIA Priority Protection Super Extras benefit.  The Super Extras benefit enables your Income Protection Cover to be split inside and outside super, maximising the claim payments available to you.
 
If your payment details need updating, you will be advised in your AIA welcome pack which you will receive via email and be asked to provide payment information via an online form. 

AIA policies will expire for Income Protection on the last policy anniversary before you turn 65.
 
Under the AIA policy, you do not have the ability to request to extend your cover up to age 70 after the age of 64, where you met certain conditions.
 
This option was available under the Integrity policy.

The Benefit Period you selected under your Integrity Income Insurance policy will be transferred to your AIA policy, unless your occupation is deemed to be in a Light Blue Occupation Class, in which case your Benefit Period will be transferred to age 65 under your AIA policy.
 
‘Light Blue Occupation Class’ includes for example, Registered Nurse, Hairdresser, Foreman, Sales Representative, Property Developer, Retail Shop Manager.
 
The AIA policy applies a benefit reduction to policies with a Benefit Period to age 70. The Monthly Benefit is reduced after the last Policy Anniversary before you turn 65.  The Insured Monthly Benefit is multiplied by the percentage shown in the table below and will remain at that amount for the duration of that claim. The premium you pay is based on the reduced Insured Monthly Benefit.
Policy Anniversary prior to your Percentage of the Insured Monthly Benefit payable
65th birthday 100%
66th birthday 80%
67th birthday 60%
68th birthday 40%
69th birthday 20%
You cannot increase your Insured Monthly Benefit on or after the Policy Anniversary before you turn 65.

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
 
You were able to select a waiting period of 180 days.
 
AIA – Priority Protection
 
The AIA policy does not offer a 180-day waiting period. If you held an Integrity policy with a 180-day 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.
For more detail on Occupation Categories, please see the AIA PDS here: AIA Priority Protection – Version 29 12/05/2024 and Priority Protection - Incorporated by Reference

Integrity – Here For You
 
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
  • 75% of the increase in your monthly earnings,
and a minimum of $250 per month.
 
The total of all increases cannot exceed the original amount of Cover at the Cover start date.
 
AIA – Priority Protection
 
Provides a Guaranteed Future Insurability benefit that allows you to increase your sum insured by 15% up to a maximum of $2,500 when your salary increases, without providing further evidence of your health or insurability.  Please note for cover held under Super, the monthly benefit cannot exceed 100% of your Pre-disablement Income.

There are standard policy exclusions which are different under your AIA policy as compared to your Integrity policy.
 
AIA will not pay a death or disablement benefit claim:
 
  • where death is the result of suicide within the first 13 months of the commencement, reinstatement or increase of the benefit (but only in relation to the increased amount)*
  • where disablement is due to intentional self-inflicted injury or any such attempt by you
  • where death or 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 service in the armed forces of any country, or
  • for normal pregnancy, uncomplicated childbirth or miscarriage.
*This exclusion will be waived in respect of any Death benefit under the Policy, provided the Policy is replacing the death benefit from AIA or a previous insurer and the full suicide exclusion period under the in-force policy to be replaced has elapsed. The waiver only applies to the amount of the Death benefit that has been replaced by the Policy.
 
As such this exclusion will be waiver when your policy transfers to AIA. 

Specified Injuries and Specified Medical Conditions benefits
 
Specified Injuries and Specified Medical Conditions are referred to as Crisis Recovery under the AIA policy.
 
Crisis Recovery provides cover for 41 conditions compared to the 20 provided under your Integrity policy.  A full list of Crisis Recovery conditions is available in the AIA PDS and Incorporated by Reference document available AIA Priority Protection – Version 29 12/05/2024 and Priority Protection - Incorporated by Reference
 
Care Support Package
 
AIA Priority Protection PLUS Optional offers equivalent benefits when compared to the Integrity Care Support Package as followings:
Care Support Package AIA Priority Protection PLUS Optional
AIA Priority Protection PLUS Optional Accommodation benefit
Overseas Assistance Relocation benefit
Bed Confinement Bed Confinement benefit
Family Support Family Care benefit
Home Care Home Care benefit
Please note, Grief Support, Child Support, Accommodation (Funeral Attendance), and Funeral Attendance benefits are not available under AIA policies. 

Integrity – Here For You
 
Your Integrity policy only waived premiums after the Waiting Period was completed and a claim was being paid to you.
 
AIA – Priority Protection
 
Should you meet the eligibility criteria to make a claim and receive a claim payment, under your AIA policy, premiums will be reimbursed during the Waiting Period.

Integrity – Here For You
 
Under the Integrity policy, the increasing of claim payments for inflation, was included in your premium, and your claim payments were indexed on your policy anniversary date. 
 
AIA – Priority Protection
 
The AIA 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 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
 
Under Integrity policy, you had the option to select the Superannuation Contribution Cover benefit when you took out your policy. The AIA policy allows you to continue to receive Superannuation Contributions when on claim under the Retirement Optimiser benefit.
 
AIA – Priority Protection
 
As a part of the transfer the sum insured you held under your Superannuation Contribution Cover benefit will be transferred to the AIA Retirement Optimiser benefit. However, where the amount you are eligible to claim is higher than the 5% cap on the Retirement Optimiser, the remaining difference will be paid directly to you as part of your monthly benefit providing you meet the eligibility criteria, and your claim is accepted.
 
The Retirement Optimiser benefit has a cap of 5% of your average monthly Income.

There are differences in the Total Disablement Definition and Partial Disablement Definition for your Integrity policy and the AIA policy.
 
The AIA policy allows for a Total Disablement Multi Definition* as per the following:
 
Total Disablement – Multi Definition*
 
*Applicable only if you have Advantage Optional or PLUS Optional.
 
a) If you are employed, or have been unemployed or on maternity or paternity leave for less than 12 consecutive months immediately before your disablement started, we will consider you to be Totally Disabled if, solely as a result of Injury or Sickness, you are:
 
  • unable to perform one or more of the important Income producing duties of your usual occupation for more than 10 hours per week;
  • not working more than 10 hours per week in your usual occupation or any gainful occupation; and
  • under the regular care of, and following the advice of, a Medical Practitioner.
However, if you have been unemployed or on maternity or paternity leave for more than 12 consecutive months immediately before your disablement started, we will consider you to be Totally Disabled if, solely as a result of Injury or Sickness, you are:
 
  • unable to perform the important Income-producing duties of any occupation for which you are reasonably suited by education, training or experience for more than 10 hours per week;
  • not working more than 10 hours per week in any gainful occupation; and
  • under the regular care of, and following the advice of, a Medical Practitioner.
Working hours for this benefit will equate to 25 hours per week.
 
Or,
 
b) We will consider you to be Totally Disabled if, solely as a result of Injury or Sickness, you are:
 
  • unable to perform one or more duties of your usual occupation that is important or essential in producing Income;
  • under the regular care of, and following the advice of, a Medical Practitioner; and
  • not working (whether paid or unpaid).
However, if you have been unemployed or on maternity or paternity leave for more than 12 consecutive months immediately before your disablement started, we will consider you to be Totally Disabled if, solely as a result of Injury or Sickness, you are:
 
  • unable to perform any occupation for which you are reasonably suited by education, training or experience;
  • under the regular care of, and following the advice of, a Medical Practitioner; and
  • not working (whether paid or unpaid).
Or,
 
c) We will consider you to be Totally Disabled if, solely as a result of Injury or Sickness, you are:
 
  • unable to perform one or more duties of your usual occupation that is important or essential in producing Income;
  • under the regular care of, and following the advice of, a Medical Practitioner; and
  • earning 20% or less of your Pre-disablement Income in your usual occupation or any gainful occupation.
However, if you have been unemployed or on maternity or paternity leave for more than 12 consecutive months immediately before your disablement started, then we will consider you to be Totally Disabled if, solely as a result of Injury or Sickness, you are:
 
  • unable to perform any occupation for which you are reasonably suited by education, training or experience;
  • under the regular care of, and following the advice of, a Medical Practitioner; and
  • earning 20% or less of your Pre-disablement Income in any occupation for which you are reasonably suited by education, training or experience.
If you are on Sabbatical Leave it will not be considered as unemployment. Sabbatical leave must be for the purpose of research and cannot exceed 12 months or the sabbatical period specified in the award covering you, whichever is the shorter period.
Partial Disablement – Multi Definition*
 
*Applicable only if the Advantage Optional or PLUS Optional benefit is selected.
 
If you are employed, or have been unemployed or on maternity or paternity leave for less than 12 consecutive months immediately before your disablement started, we will consider you to be Partially Disabled if, solely due to Sickness or Injury:
 
  • you are working for more than 10 hours per week in your usual occupation, or a gainful occupation;
  • your monthly Income is more than 20% of your Pre-disablement Income but less than 100% of your Pre-disablement Income;
  • you are working in a reduced capacity in your usual occupation or a gainful occupation;
  • you are not Totally Disabled; and
  • you are under the regular care of, and following the advice of, a Medical Practitioner.
If you have been unemployed or on maternity or paternity leave for 12 consecutive months or longer immediately before your disablement started, we will treat your usual occupation as being ‘any occupation for which you are reasonably suited by education training or experience’.
 
If the Advantage Optional benefit or the PLUS Optional benefit is selected, this Partial Disablement – Multi Definition will be applicable to:
 
  • Business Expenses when Business Expenses is selected as a Rider Benefit under an Income Protection Plan; and
  • Business Expenses Stand Alone.

Integrity – Here For You
 
Under your Integrity policy, you are considered as unemployed and an education, training and experience-based disability is applied if you are on Sabbatical Leave when you become Totally or Partially Disabled.
 
AIA – Priority Protection
 
AIA does not consider you are unemployed if you are on Sabbatical Leave (for no more than 12 months), the Total Disablement – Multi Definition and Partial Disablement – Multi Definition will be applicable. 

Integrity – Here For You
 
Monthly Earnings under the Integrity policy is comparable to ‘Income’ under the AIA policy.  However, Monthly Earnings (Integrity) and Income (AIA) have different definitions, and this may affect the level of cover and any disability payment determination.
 
AIA – Priority Protection
 
The AIA policy defines Income as:
 
  • Employed Person
    The total pre-tax renumeration paid to an Employed person including salary, commission, bonuses, overtime, fringe benefits and superannuation contributions (statutory and/or voluntary).  This does not include income which is not derived from the Life Insured’s personal exertion or activities, such as interest or dividend payments.

  • 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, for the last financial year.  Income does not include other unearned income such as dividends, interest, rental income or proceeds from the sale of assets or royalties.

Integrity – Here For You
 
The Integrity policy determines your Pre-disablement Income for Agreed Value cover by calculating the highest average Monthly Earnings for any consecutive 12-month period between the date one year prior to the cover start date and the date on which 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.  

Integrity – Here For You
 
Should you suffer a relapse of Total or Partial Disability the Waiting Period is 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
 
The AIA policy allows for Recurrent Disablement, if you return to full-time work after payment of a disablement benefit and a disablement due to the same or related cause reoccurs within 12 months, to recommence payments on the same claims without a further Waiting Period being applied.

Integrity – Here For You
 
Your Integrity – Here For You 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