Life Insurance

Life Cover Benefit

AIA will pay a Life Cover Benefit when the person insured dies, whether from illness, accident, natural causes or any other means. The only exclusion is for self-harm (e.g. suicide), and this exclusion only applies during the first 13 months of the policy.

Terminal Illness Benefit

If you are diagnosed with a terminal illness, you can apply to AIA for early payment of up to 100% of your Life Cover Benefit. Terminal illness has a meaning which is set out in the policy. To be eligible, the person insured must be diagnosed as having an illness where in AIA’s opinion despite all reasonable medical treatment they are expected to live for no more than 12 months. Supporting medical evidence must be provided to support the claim.

Specified Terminal Conditions Benefit

You can apply to AIA for a Specified Terminal Conditions Benefit equal to 30% of your Life Cover Benefit, subject to a maximum of $250,000, if you are diagnosed with any of the following incurable terminal conditions:

• Motor Neurone Disease;
• Exocrine Pancreatic Cancer (Stages 3 or 4);
• Non-Small Cell Lung Cancer (Stage 4); or
• Distal Oesophageal Cancer (Stage 4).

Payment of this benefit will be treated as a partial payment of the Life Cover Benefit.

Bereavement Support Benefit

As soon as AIA receives written notification that an insured person has died, a lump sum Bereavement Support Benefit of up to $25,000 can be paid. This benefit enables immediate costs and expenses resulting from the bereavement to be met, such as paying for funeral arrangements and for family members to travel home.

Payment of this benefit will be treated as a partial payment of the Life Cover Benefit.

Parents Grieving Benefit

AIA will pay a Parents Grieving Benefit if a child of yours dies before age 21 and:

• Prior to birth but after at least 24 weeks gestation, provided the child would have been born at least 12 months after the risk commencement date if the pregnancy continued to full term and you are the biological mother of the child; or
• After birth and at least 12 months after the risk commencement date.

If the child is under age 10, the amount payable is $2,000 (the maximum under law), otherwise the amount payable is $15,000. Conditions apply.

Payment of this benefit will not reduce the Life Cover Benefit.

Special Events Increase Facility

This facility allows you to increase your Life Cover Benefit on the occurrence of any one of a number of ‘special events’ in your life without the need for any additional medical underwriting. Learn more about the Special Events Increase Facility.

Special Events TPD/Trauma Facility

On a specified special event occurring you can choose to add any one of the following benefits to your policy without providing further medical evidence:

• An accelerated Critical Conditions Benefit;
• An accelerated Progressive Care Benefit; or
• An accelerated Total Permanent Disablement Benefit (on an Any Occupation basis, expiring at age 65).

The maximum amount of cover that can be added is the lower of 50% of the original Life Cover Benefit or $100,000. Other limits apply.

Financial and Legal Advice Benefit

If AIA pays a claim under the Life Cover Benefit, the Terminal Illness Benefit or the Specified Terminal Conditions Benefit, you can get reimbursed for up to $2,500 (including GST) for financial planning fees paid to an accredited adviser or for legal advice from a legal professional approved by AIA.

Repatriation Benefit

If you die, AIA can reimburse the cost of returning your body to New Zealand or your home country (the country in which you were born in or your country of permanent residence). The maximum amount of the repatriation benefit is 5% of the Life Cover Benefit, up to a maximum of $20,000.

Payment of this benefit will be treated as a partial payment of the Life Cover Benefit.

Counselling Benefit

Get reimbursed for up to $2,500 (including GST) for the cost of a psychiatrist or psychologist consultation and/or counselling where the support treatments and/or consultations directly relate to a claim under the Life Cover Benefit, the Terminal Illness Benefit or the Specified Terminal Conditions Benefit.

Payment of this benefit will not reduce the Life Cover Benefit.

Premium Conversion Facility

At any time, you can convert all or part of your Life Cover Benefit from a Rate for Age premium structure to a Level premium structure without needing to produce further medical evidence.

Suspension of Cover Benefit

Flexibility to suspend your cover for up to 12 months if you:

• Go on parental leave;
• Go on leave without pay for any reason;
• Become unemployed or redundant;
• Experience a reduction in pay of 20% or more (comparing the most recent payslip against a previous payslip from the same year); or
• Are self-employed and experience a reduction in revenue of 30% or more (by comparing one month’s revenue against the same month for the previous year).

No premium will be payable during the period that cover is suspended. No claim will be payable for any claim event that occurs during the period that cover is suspended.