What’s the difference between Life Insurance & Income Protection?
Life Insurance and Income Protection both offer you and your loved ones additional financial support. Life Insurance will pay a lump sum in case of your death or diagnosis with a terminal illness, while Income Protection will provide you with regular payments should you be unable to work due to illness or injury.
Compare AAMI Life Products
There’s no one-size-fits-all policy when it comes to life insurance options. That’s why AAMI Life has different choices available for you and your family to consider. To help you work out the best option for you, here are some of the main features for the different types of cover:
Life Insurance
Pays a lump sum benefit
Help look after your family
Up to $1.5m cover
Up to $10,000 advance payment
Upon death
How does Life Insurance work?
Life Insurance will pay a lump sum to your loved ones if you die or are diagnosed with a terminal illness, allowing them to keep up with payments, cover education, medical or utility costs and feel financially supported.
benefits
savings & rewards
Policy document downloads
Income Protection Insurance
Pays a monthly benefit
Helps protect your lifestyle
Up to 75% of income
75% of the average of the last 12 months’ pay at time of claim
Monthly benefit payments
From the end of the waiting period, after a successful claim has been made
Eligibility criteria applies
Must be aged 18-60 inclusive
What does Income Protection cover?
Income Protection provides you with regular payments that can help to cover part of your lost salary if you are unable to work due to illness or injury, leaving you to focus on your recovery.
benefits
savings & rewards
Policy document downloads
Waiting and no claim periods, payout limits, benefit periods and exclusions apply. Please see the PDS for more information.
LIFE INSURANCE CALCULATOR
Estimate your level of cover
This calculator can help you work out what level of Life Insurance cover you may need.
COVER BY LIFE STAGE
Find cover to suit your circumstances
Whether you’re married, starting a family or taking out a mortgage, Life Insurance can provide valuable peace of mind at every stage.
How to
Apply for life insurance and income protection
Set up your Life Insurance or Income Protection today with AAMI Life. Applying is quick and easy, there are no medical tests and you can get a quote online in minutes.
Life Insurance
What's right for you?
Why get Life Insurance with AAMI?
You can rest easy knowing that AAMI’s flexible, reliable Life Insurance was the winner of the Reader’s Digest Trusted Brand award for Life in 2019 and 2020.
Life & Income Protection Insurance
Frequently asked questions
Working out how much Life Insurance cover you’ll need really varies across each person. One approach is to think about how much you can realistically afford to pay for cover each month, taking into consideration your existing expenses. An alternate approach may be to consider your current debts and future expenses like your mortgage or rent, living expenses, child care costs, schooling fees, etc.
The Life Insurance calculator may help you work out how much cover you and your family may want to consider. You can then use that information to get a more accurate Life Insurance quote.
Most super funds offer at least a basic level of life insurance, as well as income protection and Total Permanent Disability (TPD) insurance to protect members and their families from the financial hardship of death or a terminal illness.
The level of cover and types of insurance provided through your super are limited. Payments are also sometimes delayed after you’ve made a claim, and coverage ends after you reach a certain age (usually 65 or 70). Read more about the pros and cons about using the life insurance included with your super fund at Money Smart.
Yes, if you hold other AAMI branded Insurance policies such as car insurance, we will apply a 5% discount on your AAMI Life Insurance premium for the life of the policy.
In addition, if you add another adult to your policy, the youngest person will receive a 5% discount.
Receiving a COVID-19 vaccination approved for use by the Therapeutic Goods Administration (TGA) in Australia will not affect the cover under your existing insurance policy. AAMI Life policies do not include exclusions or limitations related to COVID-19 including vaccine related side-effects. If you were to experience sickness or injury after receiving the COVID-19 vaccination, a claim can still be lodged for a benefit under your policy and your claim will be assessed and is subject to the terms and conditions of your policy. This includes doctors, nurses, health professionals, police and people working in quarantine hotels and services.
AAMI Income Protection Insurance: AAMI Income Protection policies provide a benefit if you suffer an illness or injury and you are unable to work, in line with policy terms and conditions. Therefore, if your employer mandates that you are required to be vaccinated for COVID-19 and you are restricted from working as a result of choosing not to be vaccinated, you will not be entitled to make a claim against your policy for being unable to work if you are not suffering an illness or injury that is preventing you from working in your usual occupation or performing your usual daily activities.
For the Sickness and Injury cover, it depends on the benefit period you have chosen. Each time you make a claim that’s accepted, you can be paid for up to 5 years, as long as you’re still unable to work due to the sickness or injury during that time.
You can claim as many times as you need over the life of the policy. The payment of benefits is subject to the relevant terms that apply to your policy, including any exclusions or limitations – check out the Combined Product Disclosure Statement (PDS) and Financial Services Guide (FSG) to find out more.
Yes, you can typically claim a tax deduction on income protection insurance premiums. If your income protection is part of an insurance bundle, you will only be able to claim on the income protection portion of premiums. If you receive an income protection payout, you should declare this on your tax return. You can confirm your individual tax deductions with your financial accountant by checking the ATO website.
If you suffer from the same or related sickness or injury that you have previously claimed for within 6 months of your last benefit being payable, we will recommence benefit payments without applying a new waiting period. These benefits will be added to the remaining benefit period to ensure the maximum payment under the benefit period is not exceeded. If you’ve made a full recovery and there is more than 6 months between claims, then you will commence a new claim and the benefit period will restart.
The Life Insurance Code of Practice is a series of mandatory customer service standards that all life insurers need to comply with. These standards cover sales and marketing practices, underwriting and claims and are designed to protect you.
AAMI Life Insurance policies are issued by TAL, who played a key role in creating the Life Insurance Code of Practice. AAMI Life is committed to delivering the best possible customer service standards. AAMI Life will continue to look for ways to raise the standards of customer service now and over the years to come. Read more
AAMI Life’s Commitment to the Life Insurance Code of Practice
AAMI Life Insurance policies are issued by TAL, who played a key role in creating the Life Insurance Code of Practice. AAMI Life is committed to delivering the best possible customer service standards. AAMI Life will continue to look for ways to raise the standards of customer service now and over the years to come. Read more
At TAL, we are committed to supporting our customers who may be experiencing vulnerability or have unique needs. Contact us or see how we can help if you are experiencing financial hardship or domestic and family violence.
Accidental Injury
Accidental injuries include fractures, dislocations, severe burns, and loss of limbs or sight. For a full list and conditions, please refer to the PDS.
Monthly payments
Under Income Protection, you may be able to receive up to $10,000 each month. Under Redundancy Cover, you may be able to receive up to $4,000 each month.
Income Protection
Regular expenses could mean rent or mortgage repayments, bills and credit card repayments, childcare and schools, groceries, petrol, or something else.
Lump Sum
The total lump sum you or your beneficiaries are entitled to depends on your cover amount.
Initial Advancement Benefit
The initial advancement benefit is usually provided within 24 hours of an approved claim, and can be used to help meet immediate costs.
Life Insurance
Life Insurance can help with debt payments and your loved ones’ expenses through a tax-free lump sum payout.
Up to $1.5m cover
Up to $10,000 advance payment
Upon death
Up to 75% of income
75% of the average of the last 12 months’ pay at time of claim
Monthly benefit payments
From the end of the waiting period, after a successful claim has been made
Eligibility criteria applies
Must be aged 18-60 inclusive