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About AA Life Insurance

AA Life puts you in control with straight forward life insurance from people you can trust. The 'business' of life insurance can seem extremely complicated - the processes and the paperwork, the endless forms with all that jargon and the notorious fine print that leaves you feeling uncertain about what you've bought and whether it's right for you.

Life insurance that's straight up and straightforward

So you'll be relieved to know there's now a better way. It's straight up and straightforward. AA Life lets you bypass all this complication. We'll:

explain everything in straightforward, plain English so you understand exactly what you're buying
cut out the middle man so you can be sure you're getting what you need and not what someone else thinks you should have
provide tools to help you assess your life insurance needs and find the kind of insurance that's best suited to you
put the control back where it belongs - in your hands

How we calculate premiums

To those you leave behind, your life is priceless. In the insurance industry we have to take a more calculated approach in working out the premiums you will pay and the payout your family will receive. It's worth knowing how it works so you can satisfy yourself you're getting value for money. Premiums are based on a number of factors.

What do you think you're worth?

How much do you want to insure your life for? Quite simply, the bigger the payout you want for your family when you die, the higher your premiums will be.

Mortality - a dead cert

Life insurance is not like car insurance. Not every driver has an accident, but everyone dies.

The big question we have to ask is how likely the death is of any particular person, so we take into account personal factors such as health status, age, gender, and whether you smoke.

We apply certain basic mortality statistics, for example, women tend to live longer than men, young people tend to be healthier than elderly people, smoking causes cancer.

This means the lowest premiums would typically be paid by a young female non-smoker.

Expenses

The premium you pay also includes an amount to cover business expenses for establishing and administering your policy.

Interest earned through investments

Some of your premium is invested by insurance companies. The interest it earns helps to reduce the premium you pay. So premiums are calculated on the basis of this equation: Premium = mortality + expenses and commissions - interest earned.

Disability insurance

When it comes to disability policies such as Accident Recovery insurance, mortality isn't an issue. Instead we factor into the equation morbidity which is the chance of becoming disabled. Premium = morbidity + expenses and commissions - interest earned.

You're in good hands

It's reassuring to have life insurance - but only if you're confident about the insurer you've chosen. So allow us to reassure you with some background about ourselves.

AA Life is brought to you by a partnership between the New Zealand Automobile Association (AA) and Asteron Life Ltd. Asteron underwrites all our life insurance products.

About Asteron

Previously Royal & SunAlliance's financial services arm, Asteron is one of Australasia's largest financial service providers, with around one million clients throughout Australia and New Zealand.

Asteron has a long history of operating in Australasia, with roots tracing back to 1882 in New Zealand. Asteron now forms part of the Suncorp Group of companies. Suncorp's New Zealand companies include Asteron and Vero.