NRMA life insurance

About NRMA Insurance

NRMA Insurance is part of the Insurance Australia Group, which operates some of Australia’s leading general insurers, such as CGU, SGIO, SGIC and Swann Insurance. The Insurance Australia Group (IAG) and offers insurance products and services to customers in New South Wales, Queensland, the ACT and Tasmania. IAG itself is a fully diversified insurance group which not only operates around Australia, but in New Zealand and Asia.

IAG underwrites around billions of dollars of insurance premiums each year and as a result, NRMA Insurance is able to offer a range of products including car insurance, home and contents insurance, CTP, home security, lifestyle and leisure insurance, and business insurance.

• Summary of NRMA life insurance
• Pros and Cons of this insurer

NRMA Operations Around Australia

In New South Wales, the history of NRMA Insurance dates back to 1925 when the National Roads and Motorists’ Association established the company to provide insurance to its members in NSW and the ACT. Since then, the products and services of NRMA Insurance have expanded substantially and the company manages insurance for millions of customers.

In Queensland, it was in 1995 that NRMA Insurance began to be an alternative and competitive insurer and NRMA Insurance now employs around 400 staff in Queensland and is involved in sponsorship for sports and rescue. Regardless of where in Australia they’re operating or how they started, NRMA Insurance prides itself on offering uncomplicated insurance choices to protect all of the things that are most important to you.

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.
  

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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 and an additional 5% 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. If you do not qualify for full Sickness and Injury Cover, you can still access Essentials Cover for similar benefits.

What’s the difference between Sickness and Injury and Essentials cover?

Essentials cover is for people who may not qualify for Sickness and Injury income protection cover due to not meeting work requirements, or due to health issues. Essentials can typically be applied for without medical testing, but limits you to benefits of $7,500 per month at most, or $3,000 per month if you work for less than 20 hours per week, and carries some additional exclusions:

• Pre-existing conditions
• Dangerous pastimes or occupations
• Football-related injuries that result in less than 90 days of disability
• Back injuries that result in less than 90 days of disability
  

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Extra-cost options include:

• Involuntary unemployment cover: You can add or remove this additional cover at any time, if you are aged between 18 and 60 and are working 30 or more hours per week, either on a permanent basis or self-employed. It will remain until cancelled or the age of 65. This option can pay out up to $3,000 per month for up to 3 months if you’re made involuntarily redundant, or if you’re self employed and your business becomes insolvent.
• 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. When added to Essentials cover this benefit is not available for pre-existing conditions.

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?

You can choose to pay premiums by direct debit or credit card, and can pick fortnightly, monthly, quarterly or annual payments, on any working day in the period you choose. By paying annually, you can get one free month of cover each year.

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. As such, 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 in which case they will not increase, but instead your cover will decrease commensurately while premiums are frozen.

How do I make a claim?

Generally a claim begins by calling NRMA, at which point 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.
  

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What other charges are there to be aware of?

You or your beneficiaries will generally be 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 which may apply.

Key exclusions to be aware of

For life insurance, benefits may not be payable for 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:

• Any mental health disorder
• Intoxication
• Cancer, heart attack or stroke within the first 6 months of taking out cover
• Uncomplicated pregnancy
• Terrorism or unrest in other countries where the Australian Government has issued a travel warning
• Deliberate acts or self-inflicted injuries
• Criminal offenses
• Lawful detainment or incarceration
• Additional exclusions that apply to Essentials cover where applicable
• Additional exclusions that apply specifically to the Involuntary Unemployment portion of your cover where applicable.

What are the key Involuntary Unemployment exclusions?

You may not claim under this portion of your cover for:

• Sickness or injury
• Voluntary redundancy, resignation or retirement
• Termination during a probationary period
• Business insolvency during the first six months of cover
• Termination from a family business controlled by you or an immediate family member
• Termination following poor performance, or formal disciplinary procedures
• Refusal of alternative employment
• Strikes or labour disputes
• If your employer has given some form of notice, including making media announcements, of ceasing trade or forcing redundancies