AIA rolls out tweaked level policy

AIA has released, Cover for Life, a level premium policy with some new tweaks.

Monday, March 23rd 2026, 4:26AM

It says the new product is designed to give policyholders “lifelong protection with certainty and flexibility.“

Customers choose their level of cover and a premium payment term that suits their plans, AIA Chief Product and Marketing Officer Alex Kühnast says.

“Once the term ends, premiums stop but cover continues for life. The premiums are fixed for the term and don’t go up with age.”

“A defining feature of the product is the ability to stop paying premiums once at least half the term has been paid for, and the policy will continue with a reduced cover amount. This gives customers a practical way to flex and maintain protection as their circumstances and cover needs change.”

Good Returns has asked AIA what the reduced cover amount is and also how the premiums compare with its traditional level product.

Quotemonster boss Russell Hutchinson says the level premium market is small and accounts for about 6% of life quotes, based on more than millions of quotes in 2025, on Quotemonster.

He welcomes AIA’s new product but says there is more to do.

“I am delighted to see some work being done in this area – more is required, but this is a welcome step.

“Of course, others do have level product, but this is a welcome return to structures that respect that the need for cover may extend beyond age 55, while rate-for-age structures may make that rapidly unaffordable.

Kühnast says Cover for Life responds to shifting customer needs, including longer life expectancy, growing migration, more diverse financial goals and increasing demand for predictable long term premiums.

“We’ve noticed customers are increasingly focused on long term financial security.”

“People want reliable, lifelong protection. They want something that can help them leave a meaningful legacy, cover end of life costs, or simply give them lasting peace of mind.”

“Cover for Life is designed to sit alongside standard life cover, giving customers options across different life stages. Life cover supports families when mortgages, dependants and income replacement needs are highest. Cover for Life adds certainty later on, helping with funeral and end of life expenses, leaving an inheritance, supporting a partner or dependent, or broader legacy planning.

Tags: AIA Level Premium