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.

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Maximum Cover

$1,500,000

Maximum Age

65

Total & Permanent Disability Cover

Trauma Cover

Compare key features of AAMI life insurance and get a quote today

Finder Score - Life Insurance

Life Insurance is a little complicated and a lot overwhelming. That's why we made the Finder Score, to make it easier to compare Life Insurance products against each other. Our experts analysed over 30 products and gave each one a score out of 10.

But a higher score doesn't always mean a product is better for you. Your situation is unique, so your policy choice will be too. Don't think of Finder Score as the final word, but as a good place to start your life insurance comparison.

Read the full methodology

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. 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.

Speak to an insurance specialist to help you find personalised cover

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).

Claims acceptance rate

Claims acceptance rate

Brand	Claims accepted rate
OnePath	98.0%
Zurich	98.0%
RAC	96.9%
Budget Direct	96.9%
Nobleoak	96.9%
AAMI	90.1%
Insuranceline	90.1%
Suncorp	90.1%
TAL	90.1%
Australian Seniors	88.9%
Guardian	88.9%
Kogan	88.9%
Real	88.9%
ahm	86.4%
Medibank	86.4%

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 licence. TAL is one of Australia's leading life insurers with 150 years' experience.

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

Compare other products from AAMI

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• AAMI caravan insurance
• AAMI income protection
• AAMI landlord insurance