NRMA Life Insurance

• Summary of NRMA life insurance
• Pros and cons

What are the life insurance products offered by NRMA?

The two types of cover available are:

• Life insurance: Lump sum benefits payable on death or terminal illness.
• Income protection, when bundled with life insurance: Ongoing benefits in the event of being unable to work.

What features do these policies offer?

Each plan has a range of benefits and features included, as well as optional extras.

Life insurance

Available to Australian residents aged 18 to 65, with a maximum cover amount of $1.5 million. Premiums will typically increase each year based on age and inflation.

• Flexible payout options: Nominate up to five beneficiaries and choose how funds are distributed between them.
• Partner discounts: Get $3.50 per month off the second person’s cover when adding a partner or spouse to your policy.
• Choose when to pay premiums: You can set up the payments for any working day you choose, to more easily coincide with your payment schedule.
• Discounts: Get one free month per year when paying premiums annually, 5% off when you hold other NRMA insurance policies, 30% off cover between $150,000 and $300,000, and 35% off cover above $300,000.
• Advance benefit payment: $10,000 is paid out while the claim is being processed to help cover immediate expenses.
• Guaranteed renewal until age 99: If you keep up with premium payments and meet all terms of the policy, it will not be cancelled before age 99 unless you choose to.
• Inflation protection: Your benefit increases by 5% or in line with the consumer price index each year, unless you choose not to increase it.
  

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Income protection

These are versatile income protection plans that can pay out up to 85% of your monthly income, up to $10,000 per month, if you are unable to work as a result of sickness or injury. You can tailor your cover within set limits, and with set options.

• Choose your waiting period
• Choose your maximum benefit period
• Choose your benefit amount

You are able to apply if you are an Australian resident aged 18–60 working more than 20 hours per week.

Extra-cost options include:

• Holiday injury cover: Optional extra for a one-off extra payment equal to the first month’s benefit, up to $3,000, if you’re injured during state school or public holidays and are more than 200km from home.
• Kids’ injury cover: Cash benefit of up to $50,000, depending on the injury, in the event of a child of yours being injured.
• Permanent disability cover: Optional lump sum benefit of between $50,000 and $500,000 if you are permanently disabled as defined by an inability to perform two or more daily living activities without assistance: bathing, dressing, using a toilet, getting in and out of bed or a chair, and feeding yourself.

About the insurer

NRMA was established in 1925 and is now one of the most recognisable insurance brands in Australia with millions of customers insured in its name.

NRMA is backed by IAG, the largest general insurer in Australia and New Zealand. In 2016 alone IAG insured over $2 trillion worth of assets, collected $11.4 billion in premiums and paid out almost $9 billion in claims.

NRMA delivers the reassurance of a prominent industry name, underwritten by an insurance company with immense assets to capably deliver protection for decades to come.

How are my premiums paid?

• Pay via direct debit or credit card
• Pay on a fortnightly, monthly, quarterly or annual basis, on any working day in the period you choose

Premiums are stepped and will typically increase over time based on your age, and the additional options chosen with your cover. Premiums will also increase based on the amount of cover you have. There will generally be increases as a result of inflation benefits, which you may opt-out of, as well as when you decide to increase your cover.

To help keep it affordable, you have the option of “freezing” your premiums which means premiums will not increase but your cover will decrease correspondingly.

How do I make a claim with NRMA?

Call NRMA on 132 825 (8am–8pm, Mon–Fri) to start your claim.

You or your beneficiaries will be sent the appropriate claims forms and documentation. The $10,000 advance benefit will be sent ahead of the rest where applicable.

Claims will require appropriate evidence and documentation, depending on the benefit being claimed. This may include:

• Completed claims form
• Certified copy of death or medical certificate
• Certified proof of identity showing one’s relationship to the decreased
• Certified copy of evidence showing the age of the decreased, such as a birth certificate or passport.

What other charges are there to be aware of?

You are responsible for costs associated with making claims, including postage, fees for certifying documents and similar. Government charges and taxes, such as stamp duty, may also apply to your premium payments. When choosing a payment method it’s also a good idea to be aware of any bank or transaction fees that may apply.

Key exclusions to be aware of

For life insurance, benefits are not payable for the following:

• Death or terminal illness resulting from suicide or intentional self-injury within the first 13 months of the policy. If you have increased your cover in the last 13 months, the increased portion may not be payable for the same.
• Specific exclusions may also apply to you specifically, which you will be informed of before taking out cover. For example, a regular skydiver might not be covered for death or injury resulting from skydiving. Similarly, specific occupations may have exclusions for work-related incidents.

Income protection insurance has a significantly wider range of exclusions to be aware of, and you may not be able to receive benefits for claims resulting from:

Compare direct life insurance brands

Name	Product	Maximum Cover	Maximum Entry Age	Terminal Illness Benefit	Claims Acceptance Rate	Average Claim Time	Sum Insured
NobleOak Life Insurance Finder Award		$25,000,000	74	$25,000,000	96.90%	1.1 months	$24,483 million	Our verdict: Finder Life Insurance Award winner for the last 5 years in a row. Good value for money, simple application process and a high claims acceptance rate. ⭐ Current offer: Get one month free for a limited time - apply by 21 December 2023. Offer T&Cs on insurer website apply.	Get Quote View details	Compare	loading Fetching your data...
TAL Accelerated Protection Life Insurance Finder AwardBonus		No set limit	73	Not stated	Data not available	1 months	$249,285 million	Our verdict: One of Australia's leading life insurers. Automatically includes child critical illness cover. Plus, it comes with a level premium option (e.g. costs remain similar as you get older). ⭐ Current offer: Get up to 15% off your TAL Life, Trauma or TPD insurance policy for life - if you have a Body Mass Index (BMI) between 19 and 28 at the time of your application. Offer T&Cs on insurer website apply.	Get Quote View details	Compare	loading Fetching your data...
Medibank Life Insurance		$2,500,000	70	$2,500,000	Data not available	Data not available	Data not available	Our verdict: Medibank offers a higher payout limit ($2.5 million) than 15 other providers. Get a 10% discount if you're already a Medibank Health Insurance member.	Get Quote View details	Compare	loading Fetching your data...
ahm Life Insurance		$1,500,000	55	$1,500,000	Data not available	Data not available	Data not available	Our verdict: ahm offers a simple application process. You can be approved online or over the phone. There are no medical or blood tests required.	Get Quote View details	Compare	loading Fetching your data...
HCF Life Protect Insurance		$1,500,000	65	$1,500,000	Data not available	Data not available	Data not available	Our verdict: Similar cover to other insurers ($1.5 million). A good discount for HCF members of 10% and an easy initial quote process. ⭐ Current offer: Eligible HCF Members receive 10% premium discount and HCF Thank You rewards.	View details	Compare	loading Fetching your data...
RAC Life Insurance Bonus		$25,000,000	74	$25,000,000	96.90%	1.1 months	$24,483 million	Our verdict: RAC’s maximum death cover limit of $25 million is one of the highest limits you’ll find, including $5 million in TPD insurance. You can get an online quote, but you’ll need to call RAC to get trauma cover. Benefit from added peace of mind with fully underwritten insurance.	Get Quote View details	Compare	loading Fetching your data...
Real Family Life Cover Bonus		$1,000,000	64	$1,000,000	88.90%	2.4 months	$53,238 million	Our verdict: The application is simple; it can be done with 1 phone call and there are no medical exams. But households with larger debts may need more than a $1 million payout. ⭐ Current offer: Get back 10% of the premiums you’ve paid after 1 year.	Get Quote View details	Compare	loading Fetching your data...

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