AIA Australia is adjusting its level premiums and stepped life rates as well as offering further discounts for new clients.
New members joining the Priority Protection and Priority Protection for Platform Investors products will be affected by the changes. Existing policyholders will not be impacted, the life insurer said.
Under its newly introduced large sum insured discount band, new members with higher amounts of life cover and term cover (between $750,000 and $1 million) will be eligible for a 26% discount. AIA is also decreasing its life cover stepped premiums on average between five and 6% (based on non-smoker policyholders between 35 and 65 years of age).
Adjustments will also be made to the crisis recovery cover, which pays a lump sum to members in the instance of a serious event such as cancer or coronary illnesses.
Crisis recovery will now include an increase of standalone stepped premiums on average of four to 5% for policyholders over the age of 35, and 9% for 35-years-old and under (based on non-smokers).
Priority Protection products have a range of level premium options based on the 'true level' concept that use the policyholder's entry age rather than the age at their next birthday when calculating any Consumer Price Index increases.
While level premiums will increase for new members, the accumulated premiums over the long-term remain competitive, the company said.
Term level structures provides greater flexibility in matching clients' needs over selected terms of five, 10, and 15 years, thus enabling advisers to help clients avoid yearly stepped premium increases.
AIA said the premiums under term level life cover are decreased but remain cumulatively lower than the reduced stepped life cover rates during the initial term.
Chief retail insurance officer Pina Sciarrone said: "Our life and crisis bundled policy remains competitive under the new pricing. We have tailored these changes to maintain sustainable options and ensured they are competitive in the market."