RACQ Life Insurance Review

RACQ life insurance offers three core types of life cover to meet different needs. But its benefit limit of up to $1,000,000 isn't the most competitive on the market.

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Maximum Cover


Maximum Entry Age


Terminal Illness Benefit

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Product NameRACQ Life Insurance
Maximum Cover $1,000,000
Terminal Illness Benefit$1,000,000
Funeral Benefit $15,000
Guaranteed Renewability
Cooling-off (days)30
Online Quote

RACQ life insurance: Our verdict

  • This provider has a claims acceptance rate of 97% for death cover purchased through a financial advisor, which is higher than average (96.6%).
  • You can get access to AIA Vitality discounts.
  • With RACQ, you get a death benefit of up to $1,000,000. Insurers includingNobleOak, ahm and Suncorp all offer between $500,000 and $14,000,000 more.

Read a more detailed review on:

life insurance shield

Life insurance

Key points of RACQ life insurance

  • Life insurance: Pays out a lump sum of up to $1,000,000 in the event of death or terminal illness.
  • AIA Vitality: Get access to this lifestyle rewards program with RACQ cover.
  • Funeral advance: Up to $15,000 paid out ahead of the rest to help cover immediate expenses.
  • Global coverage. You're covered worldwide 24/7 when you travel.
  • Bonus cover on selected benefits. Bonus cover can increase the amount that you're insured for by 1% a year for the first 10 years of your cover.

Note: Be sure to check the Product Disclosure Statement (PDS) for terms and conditions.

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Optional cover

Key points of RACQ optional cover

When you take out a Life insurance policy, you also have the option to add on the following:

  • TPD insurance. Pays out a lump sum of up to $750,000, or your life insurance sum insured, in the event of total and permanent disability.
  • Trauma insurance. It pays out a lump sum in the event of a specified medical event. The maximum trauma insurance cover is 50% of your life cover sum insured, up to $250,000.
  • Children's trauma cover. You can apply for up to $50,000 Children's Trauma cover to support your family if your insured child gets seriously ill.

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Key eligibility criteria

To apply, you must:

  • Be an Australian citizen or permanent resident, or a New Zealand citizen.
  • Permanently reside in Queensland or at a northern NSW address with an eligible postcode.
  • Be 18-65 years of age (18-59 for Trauma & TPD cover).
  • For TPD optional cover: Work a minimum of 20 hours per week (excludes heavy, manual occupations).

You need to also meet the underwriting requirements (health and lifestyle factors) during the application process to start receiving cover.

RACQ life insurance pros and cons

Still wondering if RACQ is right for you? Here are the main pros and cons summarised:


  • It gives you access to AIA vitality.
  • Wide range of linked cover options.


  • Maximum sum insured of only $1,000,000
  • Only available in QLD and northern NSW currently

How do I make a RACQ life insurance claim?

To make a claim you should inform RACQ as soon as reasonably possible after an insured event.

Call 1800 722 777 or email to receive a claims form, and then mail it, completed, to the RACQ claims team.

You will need to include evidence to support your claim, which depends on the type of claim. The additional documentation required may include:

  • Medical evidence provided by a practitioner
  • Proof of earnings or work status
  • Proof of age
  • Proof of death
  • Evidence of disability.

What are some of the key exclusions of RACQ life insurance?

You cannot make a claim for loss resulting from:

  • Suicide or deliberately self-inflicted injury within 13 months of taking out or reinstating life cover, or at any time for trauma and TPD cover
  • Criminal or unlawful acts, or legal imprisonment
  • Engaging in any aerial activity, except as a fare-paying passenger with a licensed airline or charter company
  • War of any kind
  • Alcohol, illicit drugs or any kind of drug misuse, whether directly or indirectly
  • Any motorised sports participation, in any capacity
  • Hazardous occupational duties, including working underground, offshore, at heights, underwater, with explosives, in the armed forces or in professional sports

For children's trauma cover specifically, you cannot make claims within the first 90 days, for congenital conditions or for pre-existing health conditions.

Compare other direct life insurance policies below

Name Product Maximum Cover Maximum Entry Age Terminal Illness Benefit Claims Acceptance Rate Average Claim Time Sum Insured
NobleOak Life Insurance
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.
TAL Accelerated Protection Life Insurance
No set limit
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.
Medibank Life Insurance
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.
ahm Life Insurance
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.
HCF Life Protect Insurance
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.
RAC Life Insurance
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.

Real Family Life Cover
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.

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