Racq Life Insurance: What You Need To Know

RACQ Life Insurance was previously offered in partnership with AIA Australia Limited (AIA). However, as of April 27, 2023, RACQ ended its partnership with AIA, and existing policies were transferred to AIA. While RACQ no longer offers life insurance under its own brand, policyholders who had RACQ Life Insurance will continue to be covered under the terms of their original policy, now serviced by AIA. This change does not impact premiums or policy coverage, and policyholders will continue to receive the benefits of their AIA Vitality membership.

RACQ's partnership with AIA Australia Limited

The ending of the partnership between RACQ and AIA Australia Limited does not require any action from current RACQ Life or Income Protection Insurance policyholders. Policyholders will continue to receive the benefits of their AIA Vitality membership and will receive separate correspondence from AIA. It is important to note that these changes will not impact premium and policy coverage, and these will remain unchanged for the current insured period.

As a result of the rebrand to AIA, some other changes include RACQ no longer contacting you about your policy, with AIA taking over this responsibility. Additionally, the billing reference on your bank or credit card statement will change from 'RACQ Life Insurance' to 'AIA Australia Limited'.

Despite the end of the partnership, RACQ has reaffirmed its commitment to offering RACQ membership for the life of the policy. This means that as long as you maintain your policy with AIA, you are entitled to continue your RACQ membership. Furthermore, you will still be able to enjoy the benefits of AIA Vitality, a personalised program that supports members in making healthier choices.

RACQ Life Insurance pros and cons

RACQ Life Insurance offers three core types of life cover to meet different needs. Here are the pros and cons of RACQ Life Insurance:

Pros

• Access to AIA Vitality: RACQ Life Insurance provides access to AIA Vitality, a lifestyle rewards program that offers various benefits and discounts.
• Wide range of linked cover options: You can add optional cover options such as TPD insurance, trauma insurance, and children's trauma cover to your life insurance policy.
• High claims acceptance rate: RACQ Life Insurance has a 97% claims acceptance rate for death cover purchased through a financial advisor, which is higher than the industry average of 96.6%.
• Global coverage: You are covered worldwide 24/7 when you travel with RACQ Life Insurance.
• Bonus cover on selected benefits: Your cover can increase by 1% per year for the first 10 years of your policy.
• Funeral advance: RACQ Life Insurance offers an advance of up to $15,000 to help cover immediate expenses.

Cons

• Limited maximum sum insured: The maximum benefit limit of $1,000,000 is lower than what some other insurers offer in the market.
• Limited availability: RACQ Life Insurance is currently only available in Queensland (QLD) and northern New South Wales (NSW), Australia.
• Exclusions: There are specific exclusions and conditions listed in the Product Disclosure Statement (PDS) that may impact your ability to make a claim. For example, claims related to suicide, criminal acts, aerial activities, drug misuse, motorised sports, and hazardous occupations are excluded.

Please note that as of April 27, 2023, RACQ's partnership with AIA Australia Limited (AIA) ended, and existing RACQ Life Insurance policies were renamed by AIA Australia.

RACQ Life Insurance FAQs

RACQ offers three core types of life cover: death cover, terminal illness cover, and funeral cover.

RACQ's death benefit pays out a lump sum of up to $1,000,000 in the event of death or terminal illness. Additionally, there is a funeral advance of up to $15,000 paid out ahead of the rest of the benefit to help cover immediate expenses.

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 total and permanent disability (TPD) cover. Other exclusions include criminal or unlawful acts, engaging in aerial activities (except as a fare-paying passenger with a licensed airline), alcohol or drug misuse, motorised sports participation, and hazardous occupational duties.

To make a claim, you should inform RACQ as soon as reasonably possible after an insured event. You can call 1800 722 777 or email [email protected] to receive a claims form, which you then need to mail, completed, to the RACQ claims team, along with any supporting evidence.

I have an RACQ Life Insurance policy. How does the end of RACQ's partnership with AIA Australia affect me?

If you have an RACQ Life Insurance policy, your policy will be renamed by AIA Australia, and AIA will be responsible for providing updates about any changes that may affect your policy. Your premium and policy coverage will remain unchanged for your current insured period, and you will continue to receive the benefits of your AIA Vitality membership. The main difference is that you will now be contacted by AIA about your policy, and your policy's billing reference on your bank/credit card statement will change from 'RACQ Life Insurance' to 'AIA Australia Limited'.

RACQ Life Insurance Optional cover Eligibility

RACQ Life Insurance offers three core types of life cover to meet different needs. The key eligibility criteria for RACQ Life Insurance are as follows:

• 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.

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.

RACQ Life Insurance claims

RACQ Life Insurance is no longer offered by the company. The company's partnership with AIA Australia Limited (AIA) ended on 27 April 2023, and they are no longer selling RACQ Life Insurance policies. However, if you had an RACQ Life Insurance policy before this date, your policy will be renamed by AIA Australia, and they will be responsible for any updates or changes to your policy.

If you need to make a claim on your RACQ Life Insurance policy, you can call AIA on 1800 722 777 between 9 am and 5 pm, Monday to Friday, AEST/AEDST. You can also email [email protected] to receive a claims form, which you will then need to mail, completed, to the RACQ claims team.

When making a claim, you will need to include evidence to support it, and the type of evidence required will depend on the type of claim. For example, you may need to provide medical evidence from a practitioner, proof of earnings or work status, or evidence of disability.

It is important to note that there are some exclusions to RACQ Life Insurance claims. For example, you cannot make a claim for loss resulting from suicide, criminal acts, engaging in aerial activities, alcohol or drug misuse, or motorised sports participation. Be sure to review the Product Disclosure Statement (PDS) for your policy to understand the specific terms and conditions, insured events, claim limits, exclusions, and benefits.

Frequently asked questions