Life Cover

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 – Here For You
 
The expiry age for Life Cover is when:
 
  • you turn 135 for policies that are outside of super; and
  • you turn 100 for policies held inside of super.
AIA – Priority Protection
 
The expiry age for Life Cover is the AIA policy’s last anniversary:
 
  • before you turn 100 for policies that are outside of super and either personally owned or are owned by an SMSF fund; and
  • before you turn 75 for policies held inside of super. 

Integrity – Here For You
 
Funeral Advancement - There is a funeral advancement benefit of $25,000 for funeral expenses.
 
AIA – Priority Protection
 
Final Expenses - Payment is capped at 10% of your sum insured for Life cover, up to a maximum of $25,000 for funeral expenses. 

Integrity – Here For You
 
In order to make a terminal illness claim, you are required to obtain certificates from two medical practitioners (at least one of whom must be a relevant medical specialist).
 
This is for all policies held inside and outside of super.
 
AIA – Priority Protection
 
If you hold Life Cover outside of super, you are only required to obtain certificate from one relevant medical specialist.
 
If you hold Life Cover inside of super you will need to obtain certificates from two medical practitioners, at least one whom must be a relevant medical specialist. 

Integrity – Here For You
 
The Life Events benefit allows an increase to the policy benefit if there is a ‘Life Event’.
 
The increase is limited to the lessor of 25% of your current benefit, or $200,000, with the total of all increase not exceeding the original sum insured and $1million.
 
The following Life Events under the Integrity policy are:
 
  • Marriage or Divorce
  • Completion of an undergraduate degree at a government recognised Australian University
  • First Anniversary of Permanent Separation
  • Death of a Spouse
  • Birth or adoption of a child
  • Dependant child commences Secondary Education
  • Becoming a Carer for an immediate family member the first time
  • Take out or increase a mortgage over principal place of residence with an accredited mortgage provider (In the case of new or increase in an existing mortgage, the increase in Cover is limited to the new mortgage amount or the increase)
  • Receive an increase of 15% or more to base annual salary (excluding irregular items like bonuses and commissions) the increase in Cover is limited to10 times the amount of the increase
 
AIA – Priority Protection
 
The Guaranteed Future Insurability (GIF) benefit allows an increase to the sum insured of the policy with a limit of the lessor of 25% of your current benefit, or $200,000.
 
This applies to all Personal Events, except for taking out a first mortgage to purchase a home which has a different set of criteria.
 
Personal Events under the AIA policy are:
 
  • Marriage;
  • First Anniversary of Marriage;
  • Permanent Separation;
  • First Anniversary of Permanent Separation;
  • Death of a Spouse;
  • Birth or adoption of a child;
  • Dependant child commences Tertiary Education; and  
  • Becoming a Carer for the first time.
  • First Mortgage – the permissible increase in benefit is the lesser of: (i) 50% of the original sum insured or, (ii) the amount of the first mortgage or, (iii) the amount of the increase of the first mortgage, or (iv) $200,000.

Integrity – Here For You
 
The Business Events benefit feature allows an increase to the policy benefit due to a ‘Business Event’.
 
This increase is limited to the lesser of 30% of your current benefit, or $500,000.
 
Business Events under the Integrity policy are:
 
  • When the value (being revenue or capital) of a key person in the business increases;
  • When a loan guarantee or other business-related debt to the business has increased; or
  • When the business has increased in value (where Cover forms part of a written buy/sell, share purchase, or business succession agreement).
AIA – Priority Protection
 
The Guaranteed Future Insurability (GFI) benefit allows an increase to the sum insured of the policy with a limit of the lesser of (i) 25% of the increase in your value to the business, or (ii) the increase in your financial interest in the business (as applicable) averaged over the last 3 years, or (iii) $500,000.
 
This permissible increase applies to all Business Events.
 
Business events the AIA policy are:
 
  • Your value to the business increases, averaged over the last 3 years, where you are a key person in the business (e.g. working partner, director, or significant shareholder).
  • The value of your financial interest in the business (including loan guarantees) increases, averaged over the last 3 years, where you are a key person in the business.
  • The value of your financial interest in the business increases, averaged over the last 3 years, where the policy forms part of a written buy/sell, share purchase or business succession agreement and you are a partner, shareholder, or unit holder in the business.
  • Where the policy forms part of a loan guarantee from you.  

Integrity – Here For You
 
The Professional Services Benefit reimburses you up to $3,000 for costs associated with obtaining financial advice.
 
AIA – Priority Protection
 
AIA offers a similar benefit called the Financial Planning Reimbursement which reimburses you up to $3,000 for associate costs where you obtain financial advice.
 
This is a combined, aggregate limit across all AIA policies you hold.

Integrity – Here For You
 
You are able to access this benefit if you worked in any health or medical occupation. A benefit would be paid to you if you acquired one of the following while working in your usual health or medical occupation:
 
Occupationally Acquired Hepatitis B or C, or
Occupationally Acquired HIV.
 
A maximum payment of $500,000 would be paid if you made a successful claim.
 
AIA – Priority Protection
 
AIA offers a similar paid option called Needlestick Injury.
 
Needlestick Injury requires you to have an Occupation Category of “M-Medical”.
 
The Needlestick Injury option is only available if you hold Life cover. The sum insured for the Needlestick Injury option will be the same as your sum insured for your life cover, up to a maximum of $1 million.
 
For further information on AIA’s Occupation Categories, please see the AIA PDS AIA Priority Protection – Version 29 12/05/2024  

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