Income Protection Insurance

No, Income protection insurance only covers you if you are unable to work because of injury or illness. 

However, you can add Redundancy cover as an optional benefit to your income protection insurance.

If your income has changed and you would like to increase or decrease your monthly sum assured under Income Protection or Mortgage, Income or Rent Cover policy, please contact your adviser to discuss.

Each option varies slightly with regards to the proportion of your income that can be insured and how the monthly benefit payment is calculated at claims time:

• Agreed Value Cover – benefit payments are based on an amount agreed at the time the cover is taken out. This provides you certainty about the amount of monthly claim benefit payments in the event of a claim.

• Indemnity Cover – benefit payments are based on a proportion of your income at the time you make a claim. 

• Loss of Earnings Cover – this option allows you to choose how your benefit payments are calculated at the time you make a claim. This can be either agreed value or indemnity, whichever is higher. This option provides flexibility if your income fluctuates. 

If you have ongoing financial commitments, you may want to consider whether you need income protection to support you to continue to meet these commitments if you were ever unable work because of illness or injury.

Please speak to your insurance adviser or request an adviser call for more information and to discuss your needs.

AIA’s Income Protection cover has a Pregnancy Premium Waiver built-in benefit. This is only available if you become pregnant while the policy is in place.

This means that AIA will waive the income protection premium for six consecutive months at any stage between the second trimester and six months after your pregnancy finishes while you are on maternity leave. You can still make a claim during this period. 

Waiting period refers to when your payments will start. Options include, 4, 8, 13, 26, 52 or 104 weeks. The longer the wait period the lower your plan costs will be. When considering your wait period also think about your sick leave entitlement and any savings you may have available.

If your repayments change, its important to review your cover and reach out to your adviser.

When you take out a policy, you can choose between 2 years, 5 years, until age 65, or until age 70. Choosing a payment period of 5 years means that you'd receive claim payments for a maximum of 5 years. Whereas if you choose "till age 65" payment period, your payments will continue until you reach age 65 (as long as you're still eligible to claim until that time).

Payments from a claim can be used in any way you like. So, in addition to helping pay your mortgage, payments could help with other household bills.