AIA is a trusted name in the New Zealand insurance landscape, providing a range of products specifically tailored towards the Kiwi lifestyle. AIA’s life insurance provides a lump sum payout on the death or terminal illness diagnosis of the life assured. It is paid to the beneficiaries listed under the policy to help cover medical costs, living expenses and utilities, children’s education, debts, rent or mortgage, funeral costs, and other financial obligations.
Read on to learn more about AIA’s life insurance products and how Policywise can make it so much easier for you to compare life insurance plans or create a customised cover that meets your family’s goals, needs, and budget.
Learn more about different types of insurance from a licenced financial adviser and see what's best for your circumstances.
Health | Life | Trauma | Total and Permanent Disability | Income Protection
AIA NZ - a brief company overview
Helping make New Zealand “one of the healthiest and best-protected nations in the world.”
The AIA Group began selling insurance in 1919 - over a hundred years ago - in Shanghai, China. Expanding into the New Zealand market in 1981, AIA NZ enjoyed rapid, constant growth and can now count more than 800,000 Kiwis as policyholders.
In 2023, AIA NZ paid out 92% of claims ($734.8 million). Life insurance claims totalled $263.5 million, 60% ($133.9 million) of which went to claims for cancer.
Policywise works with the full suite of AIA NZ’s products, including trauma, health, income protection, total permanent disablement, group, and business cover. In this review, we’ll take a closer look at AIA’s life insurance plans.
Why you need life insurance in New Zealand
In the heart of every New Zealander is a profound commitment to family and the future. Life insurance consolidates that promise and offers peace of mind and financial security.
Here’s how life insurance works: You take out a policy through an insurance company and pay a premium on a regular basis. In return:
- if you are diagnosed with a terminal illness and have a year or less to live, your life insurer will advance up to 100% of your sum insured. This early payment can help cover your medical needs and ongoing financial commitments, easing your family’s financial concerns during this difficult time.
- if you pass away, your insurance company will pay the full sum insured to the policy beneficiaries, providing them with a financial cushion. It's like saying, "Even if I'm not around, I've got your back."
If you have any questions or want help finding the right life insurance policy, book a callback with a Policywise adviser; it's fast and free.
AIA Life Insurance: Types, features and benefits
AIA offers four types of life insurance plans: AIA Living Life Cover, AIA Living Family Protection, AIA Living Accidental Death, and Starter Life Plus.
AIA Living Life Cover
AIA Living Life Cover supplies a lump sum payout in the event of your passing away or terminal illness diagnosis. Your Life Cover also offers the option to add AIA Vitality - a healthy lifestyle programme that rewards you for taking positive steps to improve your health.
With automatic worldwide reach, AIA Living Life Cover also includes special benefits for these terminal illnesses:
- Motor neurone disease
- Exocrine pancreatic cancer (stages 3 or 4)
- Non-small-cell lung cancer (stage 4)
- Distal oesophageal cancer (stage 4).
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BENEFITS |
WHAT’S ON OFFER |
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Life Cover Benefit |
Ensures your family’s financial security by paying out the full sum insured as a lump sum if you pass away |
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Terminal Illness Benefit |
Advances your life cover benefit if you are diagnosed with a terminal illness and given a year or less to live |
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Specified Terminal Conditions Benefit |
Access the lesser of 30% of your sum insured or $250,000 in advance if diagnosed with one of the following: motor neurone disease, exocrine pancreatic cancer (stage 3 or 4), non-small-cell lung cancer (stage 4), or distal oesophageal cancer (stage 4) |
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Financial and Legal Advice Benefit |
Pays up to $2,500 within 3 months of paying the claim towards professional advice on how best to utilise your payment |
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Bereavement Support Benefit |
Pays the lower of the Life Cover Benefit, $15,000 if the life assured is the sole policyholder, or $25,000 to the surviving policy owner on notification of the insured’s death |
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Parents Grieving Support |
If a child of the life assured dies, AIA will pay $2,000 if the child is less than 10 or $15,000 if over 10 without reducing the Life Cover sum insured. (This benefit ceases on the child’s 21st birthday.) |
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Counselling Benefit |
Covers a maximum of $2,500 of counselling costs within 3 months of making the claim |
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Repatriation Benefit |
Reimburses up to $20,000 of costs to bring the insured person’s remains to their home country if they pass away overseas |
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Special Events Increase Facility |
Gives you the option to increase your cover when a special event occurs, such as a salary increase, having a new baby, marriage or separation, purchasing a new property, or supporting a dependant student |
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Special Events Total Permanent Disablement (TPD)/Trauma Facility |
Allows you to add other covers, such as Accelerated Critical Conditions Benefit, Accelerated Progressive Care Benefit, or Accelerated Any Occupation Total Permanent Disablement Benefit when a special event occurs, without further medical underwriting |
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Suspension of Cover Benefit |
Allows you to suspend your cover for up to 12 months during parental leave, leave without pay, redundancy, unemployment or a significant reduction in pay or revenue |
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Premium Conversion Facility |
Allows you to convert part or all of your cover to a level premium structure reducing the life sum assured, without medical underwriting |
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Future Insurability Benefit (optional) |
Lets you increase your Life Cover by up to 20% or $100,000 every three years on the anniversary date of your policy without any further medical underwriting |
AIA Living Family Protection
Unlike other AIA life insurance plans which provide lump sum payments, AIA Living Family Protection provides monthly payments upon the insured’s death. It offers several built-in benefits, including financial and legal advice and bereavement support, but doesn’t provide a terminal illness benefit.
AIA Living Accidental Death Cover
This basic policy pays a lump sum if the insured passes away due to an accident.
AIA Starter Life Plus
AIA also offers Starter Life Plus for those on a tight budget. Starter Life Plus covers basic life and rent or mortgage protection needs, and automatic membership with Vitality Starter.
TIP: If you’re after more comprehensive cover, support, and financial protection, AIA Living Life Cover would be a better option for you. You can even add other insurance products, such as trauma (critical illness) cover, income protection, and total permanent disability insurance to create a thoughtful and detailed policy that truly secures your future.
Bundling qualifying policies even allows you to save on life insurance costs. To get a quote and a fair and accurate appraisal of which AIA life insurance product best fits your circumstances, schedule a callback with a Policywise adviser. Policywise’s service is fast and 100% free.
AIA NZ offers more ways to strengthen your cover
- AIA Health Insurance: Offers comprehensive medical cover, providing financial security against unexpected health issues, including private hospitalisation, surgeries, consultations, prescribed medications, and cancer treatment.
- AIA Total Permanent Disablement Insurance: Offers financial support in the event of permanent disability, providing a lump sum payment to cover ongoing expenses, medical care, and lifestyle adjustments.
- AIA Trauma Insurance: Provides a lump sum payment if the insured is diagnosed with a policy-defined medical condition or experiences a specified injury. This payment can be put towards medical, rehabilitation, and other related expenditures.
- AIA Income Protection Insurance: Ensures a regular income stream if you cannot work due to illness or injury, and supports daily living expenses, mortgage payments, and other financial commitments.
- AIA Mortgage Protection Insurance: Helps you with monthly mortgage payments or other bills if your income is severely affected by a medical condition or injury.
- AIA Group Insurance: AIA can tailor their services to your company's needs, whether you're a small business with 10 employees or a large one with 10,000. AIA offers a competitive benefits package that will motivate your present staff and help you hire the best people.
- AIA Business Insurance: Supports the owners and key employees of businesses during cases of critical illness and injury, helping ensure continuity and stability amidst uncertainty.
Please note: Terms and conditions, as well as exclusions, apply to all AIA products. It's important to review your policy carefully to understand the specific terms of cover and any limitations. This ensures that you have a clear understanding of the protection provided by each product. If you have any questions or would like some help finding the right policy, book a callback with a Policywise adviser; it's fast and free.
Do you need AIA Life Insurance in New Zealand?
AIA Living Life Cover pays out a lump sum to your beneficiaries if you die or become terminally ill. For families that depend on your income, AIA private life insurance serves as a substitute for lost earnings, helping loved ones maintain their standard of living and secure their future financial needs. It can also fund your children's education or contribute towards their goals and aspirations.
Still wondering if life insurance is a valuable investment? Consider these statistics:
- Financial security: Each day, more than 70 people in New Zealand are diagnosed with cancer. A New Zealander dies of coronary heart disease every 90 minutes. Life insurance provides a strong financial backup and peace of mind for your family on the death of the life assured.
- Debt protection: Home loan rates in New Zealand have been volatile since Covid-19, rising from lows near 2% to more than 7%. AIA’s Life, Trauma, or Income Protection Cover can help pay debts, rents, mortgages, and loans, relieving your loved ones from the burden.
- Income replacement: The cost of living in New Zealand rose by 7% in the 12 months to the December 2023 quarter. AIA’s Life, Disability, or Income Protection Cover can help replace the life assured’s financial input, enabling your family to maintain a similar lifestyle to that if the life assured had continued working until retirement.
- Education support: The cost of educating your child at tertiary level in New Zealand can range from $20,000 to $27,000+ per year. AIA’s Life Cover ensures your children's education remains uninterrupted, no matter what.
- Funeral costs: The average cost of a funeral in New Zealand is $10,000, yet only 5% of Kiwis have pre-planned theirs. The Bereavement Support Benefit in AIA’s Life Cover eases the financial strain by covering funeral expenses.
- Peace of mind: Knowing your loved ones are financially secure and can maintain their lifestyle after you're gone or unable to support them anymore offers invaluable peace of mind.
How Policywise can help
Policywise is a 100% free service which tells you which health, life, and disability insurance provider best fits your needs. We offer fast, comprehensive, and easy-to-understand comparisons of all leading providers, and a simple summary clearly recommending which insurer is best for your situation.
Not all insurance policies are the same. Policywise can help you sort out the duds, avoid the lemons, understand the fine print and exclusions, and get the right insurance for you and your family.
We make the important decision of where to buy your insurance super easy. We’ll answer your questions, provide experienced advice, quotes, and comparisons, and manage all the back and forth throughout the application process.
Taking out your cover through us means you'll have our lifetime support and claims advocacy, and we'll help you negotiate a positive outcome at claim time. We can also take care of lodging any claims on your behalf and back you up if the going gets tough.
Check out the reviews on our homepage for how other New Zealanders have found our service, because now is the time to get your life insurance sorted. Give your family or someone you love the most outstanding financial support possible. Book a 5-minute callback with Policywise today; our service is fast and free.
Disclaimer: All information on this page or website is general information only, not intended as advice, and does not take into consideration your personal circumstances. We recommend consulting a Policywise adviser before making any insurance decision.
Please note: Policywise advisers are licensed by the Financial Markets Authority to provide financial advice in relation to health insurance, life insurance, and disability insurance. You can learn more about this on our Public Disclosure page. All insurance covers are subject to the insurer’s approval of your application.
Insurance policies and their built-in and optional benefits may be subject to stand-down periods, exclusions, terms and conditions, and premium loadings not listed on this website. Optional benefits also have additional premiums. Please refer to the insurance product’s policy document for full details. Insurers may alter these details at any time.
Therefore, nothing in our product pages is intended to be definitive or binding. Where there are discrepancies between any policy wording on this website and the policy wording provided by the insurance company at the time your cover is approved, then the insurance company’s wording will be deemed the correct version.