AIA made multiple changes to its flagship income protection product series, Priority Protection.
If AIA's health and wellness program, AIA Vitality, is attached, new customers will receive an initial 7.5% discount for all income protection and business expenses policies. Eligible in-force policies will also have the discount applied at the next premium due date after January 20, 2017.
The insurer's Income Protection Super Extras policy will now also permit a 95%/5% split across super and non-super, up from 85%/15%.
Medical definitions, including those for stroke and severe rheumatoid arthritis, have also been updated; the latter condition will also receive a new partial benefit, passed back to eligible existing policies.
These new product updates accompany a two-year rate guarantee, which AIA said would be applied "retrospectively" for other AIA product series.
"We are seeing improved lapse rates: By giving clients the chance to engage with their insurance on a daily basis through the AIA Vitality program, they are over 50% less likely to lapse on their life insurance policies," AIA chief retail insurance officer Pina Sciarrone said.