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 is not currently available via Finder. You can visit their website at www.racq.com.au for more information or compare alternative options available here.

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:

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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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Eligibility

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:

Pros

  • It gives you access to AIA vitality.
  • 10% discount available when you buy online.
  • Wide range of linked cover options.

Cons

  • 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 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.

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 Fully Underwritten? Terminal Illness Benefit Optional Extras
NobleOak Life Insurance
$15,000,000
69
$3,000,000
TPD cover, Trauma cover
Get your one month free when you buy NobleOak Life Insurance policy. Offer ends 31 October 2021. T&C's apply.
Real Family Life Cover
$1,000,000
64
$1,000,000
TPD cover, Trauma cover
Get a refund of 10% of the premiums you've paid (in the first 12 months) with The Real Reward™ .
Zurich Ezicover Life Insurance
$1,500,000
69
$1,500,000
No optional
Get your first month free and a 10% discount by taking out a second life insurance policy (discount applies to the second policy). Customers who suffer a serious side effect from an approved COVID vaccination may be eligible for a $50,000 one-off payment. T&C’s apply.
Medibank Life Insurance
$2,500,000
70
$2,500,000
TPD cover, Trauma cover
Medibank health members save 10% on premiums every year. T&Cs apply.
ahm Life Insurance
$1,500,000
65
$1,500,000
TPD cover, Trauma cover
ahm Health members can save 10% off premiums.
RAC Life Insurance (Only available in Western Australia)
$25,000,000
69
$25,000,000
TPD cover, Trauma cover
When you purchase RAC Life Insurance, WA residents receive complimentary RAC membership which includes access to discounts on fuel, savings on shopping, entertainment and more. T&Cs at rac.com.au.
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