In a significant move to acknowledge a new generation of policyholders AIA Australia today unveiled a range of new benefits and product enhancements to its award winning Priority Protection product suite – with a focus on providing greater flexibility and cover for Australian families.
The latest enhancements include a school fees protector, an optional benefit to cover primary and secondary school tuition fees should the parent die or be permanently unable to work; and a carer’s allowance benefit, which will pay an income for up to six months, in the event the individual insured has to give up work to care for a sick child.
AIA Australia’s Chief Marketing Officer, Tim Tez, said the enhancements are in direct response to adviser feedback and continued to address Australia’s underinsurance problem.
“These enhancements have been made with Australian families front of mind. At the end of the day, we take out life cover to protect those we love in the event something unfortunate happens. These additional benefits are designed to ease the huge burden a parent may face when they are unable to work due to their own illness, or worse, the illness of a child. AIA Australia is committed to providing comprehensive, flexible cover that addresses the real needs and concerns of Australians,” said Mr Tez.
Changing working arrangements drive more flexible cover
The trend towards flexible working hours has led AIA Australia to enhance its Total Permanent Disability (TPD) and Income Protection (IP) benefits to include eligibility for those who work part-time or casual hours, or are engaged solely in home duties.
Under the new enhancements, AIA Australia has introduced TPD eligibility for those working part-time hours, that is, at least 15 hours per week. In line with this, AIA Australia has increased eligibility for IP by reducing the number of part time hours needed to be worked, down to 20 hours per week for white collar and professional occupations*.
Recognising the work of homemakers, AIA Australia has also introduced IP for people working in home duties to provide a monthly income stream for the family if they become totally disabled.
“An increasing number of Australians now work part-time or casual hours, which can make a significant contribution to the financial security of many families. Even if the family’s main earner continues to work, but the partner working part-time or casual hours is no longer able to work as a result of a disability – this can add substantial financial pressure to the family at an already stressful time,” Mr Tez said.
In addition to working more flexible hours, Australians’ increasing longevity, is also changing the face of Australia’s workforce.
The need for many baby boomers to continue working past the traditional retirement age of 65 in order to generate adequate retirement savings, has seen AIA Australia extend its Income Protection benefit to include workers up to the age of 70.
New changes also include true level premiums to age 70 for life cover, TPD and crisis recovery benefits. True level premiums use the client’s age at their next birthday at the time the cover commenced to calculate the benefit indexation increase in premiums. This differs from level premiums which use the client’s age at next birthday at the date of the increase, meaning a client’s premium will rise more steeply, than the more gradual premium rises from a true level premium methodology. AIA Australia is one of only two insurers to offer true level premiums to age 70.
“As part of our continual improvement process, we take a step back and ask ourselves and our adviser partners, what are the issues facing Australians on a day to day basis and how can we support them in their time of need? These days there’s mounting financial pressure on families of all shapes and sizes and life insurance has a critical role to play in supporting Australians as their circumstances change – be that health or work related,” Mr Tez concluded.
*AAA, AA and A occupations.