AAMI Life Insurance Review

Our verdict

• Fairly strong option for those looking for a simple policy from a long-established Australian brand of 50+ years.
• New customers who pay for their yearly premium upfront get one month free.

• There's no TPD cover option, which may put off those who're worried about a delibitating accident.
• 9 providers offered cheaper cover on average, according to our 2023 Finder Awards analysis.

Maximum Cover

$1,500,000

Maximum Age

65

Total & Permanent Disability Cover

Trauma Cover

Key features of AAMI Life Cover

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 Life, you're entitled to the following features:

• Death benefit up to $1,500,000. The death benefit of an AAMI Life insurance policy pays your family a benefit amount if you die.
• Terminal illness benefit up to $1,500,000. If you are diagnosed with a terminal illness, your beneficiary can make a claim with AAMI Life and receive a lump sum benefit amount to help you finalise your financial affairs and estate.
• Optional Severity Based Illness Cover. An optional add-on to your life cover. If you are diagnosed with an insured condition or undergoing an insured medical procedure, you'll receive a lump sum benefit up to a maximum of $250,000 from the total life benefit amount. Insured conditions can include cancer of specific critera, skin melanonma and more. See the current PDS on the provider site for the full list.
• Advanced Payout benefit. When an AAMI Life Insurance claim is approved an advanced payout of up to $10,000 can be made available with the balance of the benefit amount payable once AAMI Life has received all of the claims requirements and documentation. The advance payout can help your family with any immediate costs, such as expense of legal fees.
• 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 Life allows you to increase your benefit amount by $100,000 or 20% of the AAMI Comprehensive Life Cover benefit amount each year following a significant life event and without requiring any new medical information.
• Automatic indexation of your benefit amount. AAMI Life 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.

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 5 years. You don't have to have any medical tests, and you can pay your premiums fortnightly, 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 Life will provide up to 75% of your income to a maximum of $10,000 a month.
• Choice of four benefit period options. AAMI Life offers either a 6-, 12-, 24-month or 5-year benefit period. One year benefit periods can bring attractive premium discounts.
• Waiver of premiums during waiting period. Benefit payments will commence after just 30 days and AAMI Life will waive your premium payments during this period.
• Limited medical underwriting. In comparison to many other insurance policies, AAMI Life does not require applicants to undertake any medical or blood tests to purchase cover.
• Cooling-off period. All AAMI Life 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, as long as you haven't made a claim.
• Guaranteed cover to 65. AAMI Income protection is guaranteed to remain in force until your 65th birthday, regardless of whether or not your health deteriorates, as long as you continue to pay your premiums when due.
• Benefit indexation. Your AAMI income protection policy increases automatically each year to ensure it remains in line with inflation.

Compare AAMI with the other 2023 Life Insurance award winners

Finder's data and insights experts created a rating algorithm to compare 10 life insurance policies in Australia across pricing and key features. Our 2023 winners are:

AAMI Life Insurance

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Maximum Cover

$1,500,000

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TPD Cover

No

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Trauma Cover

Yes

NobleOak Life Insurance

1st place in Finder Awards

Get Quote

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Maximum Cover

$25,000,000

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TPD Cover

Yes

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Trauma Cover

Yes

TAL Accelerated Protection Life Insurance

2nd place in Finder Awards

Get Quote

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Maximum Cover

No set limit

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TPD Cover

Yes

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Trauma Cover

Yes

Full methodology on how we chose the winners

Compare direct life insurance policies below

Name	Product	Maximum Cover	Maximum Entry Age	Terminal Illness Benefit	Claims Acceptance Rate	Average Claim Time	Sum Insured
NobleOak Life Insurance Finder Award		$25,000,000	74	$25,000,000	96.90%	1.1 months	$24,483 million	Our verdict: Finder Life Insurance Award winner for the last 5 years in a row. Good value for money, simple application process and a high claims acceptance rate. ⭐ Current offer: Get one month free for a limited time - apply by 21 December 2023. Offer T&Cs on insurer website apply.	Get Quote View details	Compare	loading Fetching your data...
TAL Accelerated Protection Life Insurance Finder AwardBonus		No set limit	73	Not stated	Data not available	1 months	$249,285 million	Our verdict: One of Australia's leading life insurers. Automatically includes child critical illness cover. Plus, it comes with a level premium option (e.g. costs remain similar as you get older). ⭐ Current offer: Get up to 15% off your TAL Life, Trauma or TPD insurance policy for life - if you have a Body Mass Index (BMI) between 19 and 28 at the time of your application. Offer T&Cs on insurer website apply.	Get Quote View details	Compare	loading Fetching your data...
Medibank Life Insurance		$2,500,000	70	$2,500,000	Data not available	Data not available	Data not available	Our verdict: Medibank offers a higher payout limit ($2.5 million) than 15 other providers. Get a 10% discount if you're already a Medibank Health Insurance member.	Get Quote View details	Compare	loading Fetching your data...
ahm Life Insurance		$1,500,000	55	$1,500,000	Data not available	Data not available	Data not available	Our verdict: ahm offers a simple application process. You can be approved online or over the phone. There are no medical or blood tests required.	Get Quote View details	Compare	loading Fetching your data...
HCF Life Protect Insurance		$1,500,000	65	$1,500,000	Data not available	Data not available	Data not available	Our verdict: Similar cover to other insurers ($1.5 million). A good discount for HCF members of 10% and an easy initial quote process. ⭐ Current offer: Eligible HCF Members receive 10% premium discount and HCF Thank You rewards.	View details	Compare	loading Fetching your data...
RAC Life Insurance Bonus		$25,000,000	74	$25,000,000	96.90%	1.1 months	$24,483 million	Our verdict: RAC’s maximum death cover limit of $25 million is one of the highest limits you’ll find, including $5 million in TPD insurance. You can get an online quote, but you’ll need to call RAC to get trauma cover. Benefit from added peace of mind with fully underwritten insurance.	Get Quote View details	Compare	loading Fetching your data...
Real Family Life Cover Bonus		$1,000,000	64	$1,000,000	88.90%	2.4 months	$53,238 million	Our verdict: The application is simple; it can be done with 1 phone call and there are no medical exams. But households with larger debts may need more than a $1 million payout. ⭐ Current offer: Get back 10% of the premiums you’ve paid after 1 year.	Get Quote View details	Compare	loading Fetching your data...

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Last Name

Phone

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State ACTNSWNTQLDSATASVICWA

Age

Sex

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Female

Do you smoke?

Yes

No

Level of Protection UnsureNone$100,000$200,000$300,000$400,000$500,000$600,000$700,000$800,000$900,000$1,000,000$1,250,000$1,500,000$1,750,000$2,000,000

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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 65 years of age. For Optional Severity Based Illness Cover, you will need to be 18 to 55 years old.
• You must be an Australian resident.

Provided all the policy conditions continue to be met and you continue to pay your premiums when due, your cover is guaranteed until your 99th birthday.

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 AAMI Life as soon as possible after the event that causes the claim.
• AAMI Life 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.

Interested in applying for Life Insurance from AAMI Life?

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

See how AAMI's claim acceptance rate stacks up against other life insurers

This is the percentage of claims a life insurer pays out. It's based on data from Australian Prudential Regulation Authority (APRA) covering the 12-month period from 1 July 2021 to 30 June 2022. Taken from 18 Australian life insurance underwriters (of direct policies).

About the insurer

AAMI Life Insurance products are provided by TAL Life Limited, which is part of the TAL Dai-ichi Life Australia Pty Limited group of companies (TAL). TAL companies are not part of the Suncorp Group, and use the AAMI brand under license. TAL is one of Australia's leading life insurers with over 150 years experience. Information is current as of 27 November,2020 and may be subject to change from time to time without notice.

Why you can trust Finder's life insurance experts

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Our team of life insurance experts have researched and rated dozens of policies as part of our Finder Awards and published 250+ guides to make it easier for you to compare.

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Unlike other comparison sites, we're not owned by an insurer. That means our opinions are our own and we work with lots of life insurance brands, making it easier for you to find a good deal.

We're here to help

Since 2016, we've helped 270,000+ people find life insurance by explaining your cover options, simply and clearly. We'll never ask for your number or email. We're here to help you make a decision.

Some questions you might have about your AAMI Life Insurance

• Q. I'm 65 years old - can I apply for cover?

  • A. Yes. You will need to be between 18 and 65 years of age to apply for AAMI Life Insurance. If you want to add Optional Severity Based Illness Cover, you cannot apply as the maximum application age is 55.

• Q. How long does cover last?

  • A. Your AAMI Life Insurance policy is guaranteed every year until your 99th birthday as long as you continue to pay your premiums when due.

• Q. Is there a cooling-off period?

  • A. Yes. You have 30 days after taking out a policy to decide whether it is right for your needs. You will receive a full premium refund if you cancel your policy during this period as long as you haven't made a claim during this time.

• Q. How much life cover can I apply for?

  • A. You can choose to cover yourself and one additional adult for up to $1,500,000 for death or terminal illness and up to $250,000 for Optional Illness Covers.

• Q. Can I increase my level of cover without providing any additional medical information?

  • A. Yes. The Lifestyle Increase Benefit allows you to increase your sum insured by $100,000 or 20% of the AAMI Comprehensive Life Cover benefit amount each year without supplying any additional medical information. You can apply for this benefit following a significant life event if you are under 60 years of age and you:
    • Get married
    • Give birth to or adopt a child
    • Have a child starting high school for the first time
    • Purchase a home
    • Your partner dies