AAMI Life Insurance Review | Pros & Cons Revealed

Compare policies on offer from one of Australia's leading general insurance providers, AAMI.

AAMI Life Insurance

Life insurance is an important financial decision, one made with your family's needs and future plans in mind. Choosing the right insurer is a big decision because you need someone you can trust, someone you can rely on and someone who understands your needs and takes the time to tailor its products to your needs.

Compare life insurance options from AAMI

Name Product Maximum cover Maximum Entry Age Minimum Sum Insured Cooling-off
Expiry Age Short Description
Get life cover up to $1 million.

Compare up to 4 providers

Name Product Short Description Maximum Monthly Benefit Maximum % of Income Covered Maximum Benefit Period Waiting Period
Get cover up to a maximum of $10,000 of your monthly income.
24 months
30 days

Compare up to 4 providers

Maximum covered amount$1,000,000
Age of entry18
How do I apply?Through AAMI website
  • Long standing brand
  • No future insurability benefit
  • Financial hardship feature
  • No trauma or TPD options
  • No medical assessment (great if you are in good health)

This cover might be suitable if:

  • You don't want a medical assessment
  • You don't want to go through an advisor
  • You want a policy with a well known brand

Don't get this cover if:

  • You want your premiums that stay the same for life.
Based on AAMI Life Insurance policy. Information last updated September 2019. Always consult the Product Disclosure Statement (PDS)

Who is AAMI Life Insurance Australia?

AAMI is a direct insurance provider offering a broad range of insurance solutions including car, CTP, home, motorcycle, caravan, travel, business, income protection and life insurance.

Since AAMI's inception in 1969, AAMI has expanded from solely providing car insurance to be a market leader across a range of other insurance products. AAMI now boasts over 2.5 million policyholders and is backed by an award winning team of consultants, who provide superior customer service and help customers find and manage their insurance needs 24 hours a day, seven days a week.

As the Money Magazine insurer of the year for 2011, 2012 and 2013, AAMI has solidified its position as one of Australia’s most popular insurers.

AAMI Life Insurance Policy Features

You can apply for any of the AAMI life insurance policies without the need for a blood or medical test. Your application is assessed based on your health, age and occupation, which determines your level of risk and how much you pay for your premiums. When you apply for life insurance with AAMI, you're entitled to the following features:

  • Death benefit up to $1,000,000. The death benefit of an AAMI life insurance policy pays your family a benefit amount if you die.
  • Terminal illness benefit up to $1,000,000. If you are diagnosed with a terminal illness, you can make a claim with AAMI and receive a lump sum benefit amount to help you finalise your financial affairs and estate.
  • Funeral advancement benefit. As part of your death benefit coverage, your family is able to receive an advance of $10,000 of the benefit amount when you die, to help pay for funeral costs and other final expenses. When the claim has been fully processed, your family receives the remainder of the death benefit amount, less the advance.
  • Lifestyle increase benefit. As you move through life, your commitments and obligations change depending which life stage you are in. These life stages range from getting married to having a child, from buying a new home to paying for your children's education. Your AAMI life insurance can take this journey with you. If you are under the age of 60, AAMI allows you to increase your benefit amount by $100,000 each year and without requiring any new medical information.
  • Automatic indexation of your benefit amount. AAMI automatically increases your benefit amount by the CPI or 5%, whichever is greater. This keeps your benefit amount relevant to current costs at the time of the payout.
  • Premium freeze. If you want to keep your budget under control, you can have AAMI freeze your premiums, which means you pay the same amount for your life insurance year after year, and instead your benefit amount decreases. You can impose or lift a premium freeze at any time.
  • The 13th month free. After you have kept your AAMI life insurance policy for 12 months and kept your premiums up to date, AAMI will waive the premium payable for your 13th month.
  • Financial planning benefit up to $2,000. Once you have held your policy for three years, the financial planning benefit is automatically be added, where AAMI will reimburse you for up to $2,000 worth of financial planning advice received from a licensed financial planner, within 12 months of making a claim on the death benefit or terminal illness benefit of the life insurance policy.

AAMI Income Protection Insurance

AAMI’s income protection insurance product pays a benefit of up to $10,000 per month to help you maintain your household cash-flow if you are unable to work because of illness or injury. You can choose a benefit period up to 2 years. You don't have to have any medical tests, and you can pay your premiums monthly or annually.

Features of AAMI Income Protection Insurance

  • Benefit of up to $10,000. In the event that you are forced to take time out of work as a result of injury or illness, AAMI will provide up to 75% of your income to a maximum of $10,000.
  • Choice of two benefit period options. AAMI offers applicants either a one-year or two-year benefit periods, giving you the peace of mind that, in the event of a serious illness or injury, you will receive your monthly benefit for up to two years. One year benefit periods can also bring significant premium discounts.
  • Waiver of premiums during waiting period. Benefit payments will commence after just 30 days and AAMI will waive your premium payments during this period.
  • Limited medical underwriting. In comparison to many other insurance policies, AAMI does not require applicants to undertake any medical or blood tests to purchase cover.
  • Cooling-off period. All AAMI policies offer a 30-day cooling-off period, giving you the opportunity to cancel your policy and receive a full premium refund if you are not satisfied with the cover provided.
  • Guaranteed cover to retirement. AAMI Income protection is guaranteed to remain in force until your 65th birthday, regardless of whether or not your health deteriorates.
  • Benefit indexation. Your AAMI income protection policy increases automatically each year to ensure it remains in line with inflation.
  • Fast and simple claims process. In the event that you need to make a claim, you can fill out a claim form entirely online.

Other AAMI Insurance Products

In addition to life insurance and income protection, AAMI also offers:

  • Business insurance. Business insurance protects your business against the loss, damage or theft of stock, the business' premises, and covers certain equipment breakdown. This means that if your business operations are interrupted because of damage to or loss of your property, you can continue to pay business expenses, and keep your employee wages paid too.

Who is eligible for AAMI Life Insurance?

You will need to satisfy the following criteria to be eligible for AAMI Life Insurance:

  • You must be between 18 and 60 years of age (inclusive)
  • You must be an Australian or New Zealand citizen or permanent resident and residing in Australia at the time of application
  • You must receive the PDS in Australia

Provided all the policy conditions continue to be met, your cover is guaranteed renewable until your 99th birthday. The maximum amount of cover you can take out with AAMI Life Insurance is $1 million.

How do I make a claim for AAMI Life Insurance?

To make a claim under an AAMI Life Insurance policy:

  • Your nominated beneficiary or your legal representative will need to contact the insurer as soon as possible after the event that causes the claim.
  • AAMI will then send out a claims pack detailing what information and documentation your beneficiary will need to provide in order for the claim to be processed.
  • A completed claim form and a death certificate for the claim to be processed, while in some cases a report from your medical practitioner may also be required.
  • If any requested information isn't provided within a suitable time frame, a claim could be reduced or refused altogether.

Some questions you might have about your AAMI Life Insurance

Interested in applying for Life Insurance from AAMI?

With AAMI life insurance protecting you and your family from the unknown, you can feel free to get on with your life knowing that you're protected, should something to happen to you. You can receive a preliminary quote and purchase cover entirely online through their user friendly online application portal.

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