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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RACQ life insurance pays up to $1 million to your nominated beneficiary if you pass away. This means that your loved ones could continue paying the mortgage or other living expenses after you're gone. You can also add total and permanent disability or trauma insurance so you will be covered if you become too sick or ill to work.

Types of life insurance offered by RACQ

  • Life insurance: Pays out a lump sum of up to $1 million in the event of death or terminal illness.
  • TPD insurance: Optional inclusion with your life cover. 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: Optional inclusion with your life cover. 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.
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Maximum cover amount
  • Life cover. $1,000,000
  • Total and permanent disability cover. $750,000
  • Trauma cover. $250,000
  • Children’s trauma cover. $50,000
Age of entry18 to 65 (based on life insurance cover)
How do I apply?With the insurer directly.
  • 10% discount available when you buy online
  • Lower sums insured as you get older
  • No cover through super available
  • Wide range of linked cover options
  • Maximum sum insured of only $1 million

What features are offered by RACQ’s policies?

Policy features include:

  • 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.
  • Multiple TPD definitions available: RACQ offers this inclusion whether you’re working or not, and whether you’re full time, part time or casual. If you are working full time you may be eligible for the “any duties” disability definition, which pays out if you are unable to work in an occupation that you’re suited to, while others may be eligible for “home duties” TPD cover, which pays out if you are unable to independently perform activities of daily living, such as eating or getting out of bed.
  • Personal and children’s trauma cover: You can get personal trauma cover, which pays out in the event of being diagnosed with certain illnesses or injuries, as well as children’s trauma cover, which pays out in the event of your child suffering certain injuries or illnesses. This can pay out in addition to other cover, such as TPD. In both cases, this type of cover is meant to ensure that you are financially able to drop everything and simply focus on your own recovery, or your child’s.
Personal trauma injuries and illnesses

With this cover type you can get paid up to $250,000 in the event of being diagnosed with any of the following:

  • Cancer
  • Chronic kidney failure
  • Coma
  • Coronary artery bypass surgery
  • Heart attack
  • Loss of hearing
  • Loss of speech
  • Multiple sclerosis
  • Paralysis
  • Pneumonectomy
  • Severe burns
  • Stroke.
Children’s trauma injuries and illnesses

With this cover type you can get up to $50,000 in the event of your child being diagnosed with:

  • Bacterial meningitis
  • Blindness
  • Cancer
  • Encephalitis
  • Major head trauma
  • Paralysis
  • Severe burns.

About RACQ

RACQ is a for-members insurer that’s focused on Queensland but available nationwide. Its primary focus was and still is car insurance, as well as a comprehensive roadside assistance network, but members can also enjoy other forms of cover, including life insurance.

With the experience of a major insurer, coupled with the community-focused approach it began life with, RACQ’s reputability and member’s-first ethos might make it a natural for those looking at life cover.

Are there any rewards programs?

A range of loyalty bonuses and other rewards programs can help you get more out of RACQ life insurance.

  • Multiple loyalty bonuses: Your life cover, bundled TPD cover and bundled trauma insurance each grow their own separate loyalty rewards where your cover for these increases by 1% per year at no extra cost, up to 10%.
  • AIA Vitality: You can get access to this program through RACQ life insurance. It delivers additional discounts and rewards, but more importantly also gives you a range of health management assistance, including incentives, programs and easier access to health checks.
  • RACQ membership benefits: You can also get additional benefits and rewards as an RACQ member as well as a policyholder. These can include discounts on other types of insurance, freebies and more, with rewards that grow over time.

Am I eligible for a policy from RACQ?

PlanEntry age*
Life coverBetween 18 and 65
TPD coverBetween 18 and 59
Trauma coverBetween 18 and 59

How are my premiums paid?

You can pay premiums fortnightly, monthly or annually, with direct debit or credit card.

The cost of your life premiums are based on factors including:

  • Age
  • Gender
  • Health and lifestyle
  • Smoking status
  • Number of insured children covered by your policy
  • Discounts that apply

When you include TPD insurance your premiums are also affected by:

  • Your occupation
  • Number of hours worked
  • Location of your work

Typically your premiums will increase each policy anniversary based on your current age, inflation and other factors.

What other charges are there to be aware of?

Generally all of the costs are built into the premium, including charges such as the policy fee and government stamp duty.

Possible costs that won’t be included in the premiums are those from other service providers. For example, your bank might charge a fee when you make payments to RACQ, and you are likely to incur expenses while getting the necessary documentation for a claim.

What are some key exclusions of the insurer?

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.

How do I make a claim with RACQ?

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

Call 1800 722 777 or email claims@lifeinsurance.racq.com.au 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.

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