RACQ Life Insurance
Summary
RACQ Life and Income Protection Insurance policies are now managed by AIA Australia. Existing policyholders retain their coverage and RACQ membership.
Company Overview
RACQ - Company Overview
IMPORTANT NOTE: RACQ has stopped offering life insurance.
RACQ, the Royal Automobile Club of Queensland, stands as a cornerstone of the Queensland community, evolving from its inception in 1905 to become the state's largest member-owned organization. Driven by a commitment to its over 1.7 million members, RACQ offers a comprehensive suite of services designed to enhance the lives of Queenslanders.
Beyond its widely recognized roadside assistance, RACQ provides a diverse range of insurance products, including home, car, and travel coverage, as well as banking and financial services. The organization also operates travel agencies and resorts, catering to the leisure and mobility needs of its members.
A key aspect of RACQ's identity is its advocacy work. The club actively champions the interests of Queenslanders on critical issues related to motoring, road safety, infrastructure, and broader community well-being. This advocacy plays a significant role in shaping policies and initiatives across the state.
As a mutual organization, RACQ's profits are reinvested to benefit its members and the wider Queensland community. This member-centric approach underpins its operations and reinforces its position as a trusted and influential voice in the state. Through its extensive service offerings and dedicated advocacy, RACQ continues to play a vital role in supporting the safety, mobility, and prosperity of Queenslanders.
Key Information
Key Information – RACQ Life Insurance
- Insurer Name: RACQ Life Insurance (issued by AIA Australia Limited)
- Year Established: RACQ was founded in 1905; Life Insurance products offered in partnership with AIA since 2017
- Distribution Channel: Direct to consumer via RACQ’s website and contact centre
- Types of Cover Offered:
- Life Cover (Death Cover)
- Optional Total and Permanent Disability (TPD) Cover
- Optional Accidental Death Cover
- Premium Structures: Stepped premiums (adjust based on age and CPI annually)
- Underwriter: AIA Australia Limited
- Application Process: Online or over the phone; typically no medical exam required, but health and lifestyle questions are included
- Support Services: AIA Vitality membership included with eligible policies – provides health and wellbeing benefits and discounts
- Financial Strength Rating: AIA Australia – Strong (AA- by Standard & Poor’s, as of last available data)
- Headquarters: Brisbane, Queensland (RACQ), with underwriting support from AIA’s Sydney-based operations
History and Milestones
RACQ - Company history and milestones
RACQ (The Royal Automobile Club of Queensland) has a rich history dating back over a century. While best known for its motoring services and roadside assistance, RACQ has evolved into a trusted provider of a wide range of financial services, including life insurance, delivered in partnership with AIA Australia.
1905 – Founding of RACQ: RACQ was established in Brisbane as a motoring club to support the needs of Queensland drivers. Over time, it grew into one of the most recognised member-based organisations in Queensland.
Mid-20th Century – Diversification Beyond Motoring: RACQ expanded its offerings beyond automotive services, introducing products such as home, car, and travel insurance to meet broader member needs. Its focus remained firmly on serving Queenslanders with reliability and trust.
2010s – Financial Services Expansion: RACQ significantly enhanced its financial services portfolio, including banking and insurance products. The organisation became a one-stop destination for Queenslanders seeking local and dependable financial protection.
2017 – Launch of RACQ Life Insurance (in partnership with AIA): RACQ entered the life insurance market through a strategic partnership with AIA Australia, one of the country’s leading life insurers. This move allowed RACQ to offer life cover and related products under its own brand, backed by AIA’s underwriting expertise and claims management.
2018–2023 – Strengthening Member Offerings: RACQ Life Insurance introduced products including optional TPD and Accidental Death cover. Through the inclusion of AIA Vitality, RACQ added ongoing value through wellbeing tools, rewards, and member engagement.
2024–Present – Continued Commitment to Queenslanders: RACQ continues to refine its life insurance offering, focusing on simple application processes, competitive premiums, and excellent service. Its partnership with AIA enables access to one of the most robust claims support systems in the country, while maintaining the trusted RACQ brand that Queenslanders know and rely on.
Present Day (2025): RACQ no longer sells life insurance
Key Strengths
RACQ Life Insurance - Key Strengths
RACQ's enduring success and positive impact on Queensland stem from a powerful combination of key strengths including;
- Financial Strength: As a well-established and member-owned organization, RACQ possesses financial stability, allowing it to reinvest profits for the benefit of its members and the community.
- Strong Brand Reputation and Trust: With over a century of service in Queensland, RACQ has built a strong reputation for reliability and trustworthiness among its large membership base. This is reflected in their high RepTrak® score for brand trust and reputation.
- Extensive Membership Base: As Queensland's largest member-owned organization with over 1.7 million members, RACQ benefits from a significant and loyal customer base, providing stability and scale.
- Comprehensive Service Offering: RACQ provides a diverse range of essential services, including roadside assistance, insurance (car, home, travel, pet), banking (loans, accounts), and travel, catering to various needs of Queenslanders.
- Commitment to Advocacy: RACQ actively advocates for its members and the broader Queensland community on crucial issues like road safety, infrastructure, affordability, and sustainability, influencing policy and driving positive change.
- Member Benefits and Discounts: RACQ offers a wide array of member benefits and discounts on fuel, groceries, entertainment, travel, and RACQ products and services, enhancing the value of membership.
- Adaptability and Innovation: RACQ demonstrates a willingness to adapt to changing needs, including supporting the transition to electric vehicles and focusing on climate resilience. They are also innovating their business model to ensure long-term sustainability.
- Strong Employee Culture: RACQ aims to be an employer of choice by fostering a culture aligned with their purpose and values, emphasizing care, accountability, learning, and excellence.
Awards and Recognition
RACQ – Awards and Recognitions
RACQ has consistently been recognized for its outstanding services, value, and commitment to the Queensland community. Here are some notable awards and recognitions RACQ has received:
- Corporate Philanthropist of the Year Award (2023): Recognized by the Queensland community for their significant contributions and support to various community groups and charities through the RACQ Foundation and other initiatives.
- RepTrak® Scores: Consistently high scores reflecting strong brand trust and reputation.
RACQ has also won multiple awards outside the scope of life insurance (for their other services). These awards and recognitions highlight RACQ's commitment to providing valuable products and services, achieving high levels of customer satisfaction, and making a positive impact on the Queensland community.
Why Choose RACQ Life Insurance
✓ Continued RACQ membership benefits
Even though AIA Australia now manages the policies, as a life insurance policyholder, you typically retain your RACQ membership, unlocking a wide range of exclusive benefits and discounts on motoring, travel, and lifestyle products and services across Queensland.
✓ Trusted legacy & strong partnership
While the policies are managed by AIA, they were initially offered by RACQ, an organization with over a century of commitment to Queenslanders and a strong reputation for trust and member advocacy. This partnership with AIA, a leading life insurer, ensures ongoing quality and security for your coverage.
✓ Comprehensive coverage options
Through AIA, you have access to a range of life and income protection insurance options designed to provide financial security for you and your loved ones in the event of death, disability, or serious illness. These policies can be tailored to suit your individual needs and circumstances.
✓ AIA Vitality Benefits
Your policy may include access to the AIA Vitality program, which rewards you for making healthier lifestyle choices. This program offers discounts, cashback, and other incentives, potentially leading to both better health and financial savings.
✓ Support from a reputable insurer
The transition of policy management to AIA Australia was designed to be seamless, with your existing coverage and premiums remaining the same for the current insured period. AIA is a well-established and reputable life insurer dedicated to providing ongoing support and claims assistance.
✓ Committed to Queenslanders
By choosing a policy that was initially offered by RACQ and is now managed by AIA, you are aligning with organizations that have a strong commitment to the well-being and financial security of Queenslanders. This ensures your insurance needs are handled with understanding and care.
Features and Benefits
Flexible coverage
Tailor your life and income protection policies to match your specific financial needs and life stage, ensuring you have the right level of coverage for your circumstances.
Financial Security
Provide a financial safety net for your family in the event of your passing, helping them manage expenses, maintain their lifestyle, and secure their future.
Income protection during illness
Safeguard your income stream if you're unable to work due to illness or injury, helping you meet ongoing financial obligations and maintain your quality of life.
Health and wellbeing
Benefit from a range of health and wellbeing resources offered through AIA, supporting you in leading a healthier lifestyle.
Claims support & assistance
Benefit from AIA Australia's dedicated claims team, who are experienced in providing compassionate and efficient support during difficult times.
Portability of cover In many cases, your life insurance cover can be maintained even if you change jobs or move interstate, providing continuous protection for you and your family.
In many cases, your life insurance cover can be maintained even if you change jobs or move interstate, providing continuous protection for you and your family.
Cover Amount Ranges
RACQ - Cover Amount Ranges
The cover amounts available with RACQ Life Insurance vary depending on the specific type of cover:
Life Cover:
- Generally, cover amounts can range from $50,000 up to $1,000,000.
- Some sources suggest that under certain circumstances and through financial advisors, higher cover amounts might have been available previously.
- AIA Australia, the current administrator, may offer different maximum cover limits for new policies.
Total and Permanent Disability (TPD) Cover (if included with Life Cover):
- Maximum cover often aligns with or is a portion of the Life Cover amount, potentially up to $750,000 or the full life insurance sum insured.
Trauma Insurance (if included with Life Cover):
- Cover amounts are typically a percentage of the Life Cover, with a maximum limit, potentially up to $250,000 or 50% of the life cover sum insured.
Children's Trauma Cover (if included):
- A separate, smaller cover amount, potentially up to $50,000, to support families if a child experiences a specified medical event.
Important Considerations:
- Individual Needs: The appropriate cover amount depends heavily on your personal circumstances, such as your income, debts, family situation, and future financial obligations.
- Policy Options: Different life insurance products will have varying cover amount options and maximum limits.
- AIA Australia's Current Offerings: Since AIA Australia now manages these policies, it's best to contact them directly or refer to their current Product Disclosure Statement (PDS) for the most up-to-date information on available cover ranges for both existing and new policies.
- RAC WA: It's worth noting that RAC (Royal Automobile Club) in Western Australia, which is a separate entity from RACQ, may have different cover amount ranges for their life insurance products underwritten by AIA. Some information suggests life cover up to $25 million may be available through RAC WA. However, for RACQ-related policies, the initial maximum mentioned ($1,000,000) is more relevant.
NOTE: To get a better understanding and compare RACQ (now AIA) life insurance vs other companies, we recommend comparing companies with our free comparison tool.
Pros and cons of RACQ Life Insureance
| Pros | Cons |
|---|---|
| Established Brand Association: RACQ is a well-known and trusted brand in Queensland, which may have provided a sense of security and familiarity when considering life insurance. | No Longer Directly Offered: RACQ no longer directly sells or underwrites life insurance, which might be confusing for members who prefer a single provider for multiple services. |
| Integration with Membership: Holding an RACQ Life Insurance policy often meant continued RACQ membership benefits, providing value beyond just the insurance coverage. | Referral Process: Enquiring about or managing the life insurance now requires dealing with AIA Australia, potentially adding a step compared to managing other RACQ products directly. |
| Optional Add-ons: The policies offered optional Total and Permanent Disability (TPD) and Trauma cover, allowing for a more comprehensive suite of protection. | Underwriting Requirements: Like most life insurance, eligibility and premiums were subject to underwriting, meaning not all applicants were accepted or received standard rates. |
| Lump Sum Benefit: The core benefit was a lump sum payment on death or terminal illness, providing immediate financial support to beneficiaries. | Maximum Cover Limits: The maximum cover amounts (e.g., $1,000,000 for Life Cover) might not have been sufficient for all individuals with complex financial needs. |
| Accessibility for RACQ Members: The distribution through RACQ made these life insurance options readily accessible to their existing membership base in Queensland and specified NSW regions. | Policy Cessation After Claim: The Life Cover policy ceased after a claim payment, meaning no further coverage under that specific policy. |
Sustainability and Corporate Responsibility
RACQ - Sustainability and Corporate Responsibility Overview
RACQ Environmental Sustainability
- Electric Vehicle (EV) Support: RACQ actively supports the transition to electric vehicles through initiatives like the Electric Highway, a network of charging stations across Queensland, and educational resources to encourage EV adoption among members.
- Climate Resilience: Recognizing the impacts of climate change on Queensland, RACQ invests in research and advocacy to promote climate resilience and adaptation strategies for the community. This includes supporting infrastructure improvements and advocating for sustainable planning.
- Reducing Operational Footprint: RACQ is committed to minimizing its own environmental impact through energy efficiency measures in its buildings, waste reduction programs, and sustainable procurement practices.
- Conservation Efforts: RACQ supports environmental conservation projects and partners with organizations dedicated to protecting Queensland's natural environment.
RACQ Social Responsibility
- RACQ Foundation: A cornerstone of their social impact, the RACQ Foundation provides significant funding and support to Queensland communities impacted by natural disasters, helping with recovery and rebuilding efforts.
- Road Safety Advocacy and Education: As an advocate for safer roads, RACQ invests in educational programs and campaigns aimed at improving driver behavior, increasing awareness of road risks, and reducing road fatalities and injuries.
- Community Partnerships: RACQ actively partners with a wide range of community organizations and charities across Queensland, providing financial support, volunteer hours, and in-kind contributions to address social needs and enhance community well-being.
- Accessibility and Inclusion: RACQ strives to ensure its services and information are accessible to all members, including those with disabilities. They also promote diversity and inclusion within their own organization.
- Youth and Education Initiatives: RACQ supports programs that benefit young Queenslanders, including educational scholarships and initiatives that promote safety and skill development.
RACQ Governance
- Member Ownership and Engagement: As a member-owned organization, RACQ prioritizes the interests of its members and ensures their voices are heard through various engagement mechanisms.
- Ethical Practices and Transparency: RACQ is committed to high standards of ethical conduct, transparency, and accountability in all its operations.
- Risk Management and Compliance: Robust risk management frameworks and adherence to regulatory requirements underpin RACQ's governance practices.
- Stakeholder Engagement: RACQ actively engages with a broad range of stakeholders, including members, employees, government bodies, and community organizations, to ensure its activities align with community needs and expectations.
Through these comprehensive initiatives, RACQ demonstrates a genuine commitment to operating sustainably and contributing positively to the social, environmental, and economic well-being of Queensland.
Technology and Innovation
RACQ - Technology & Innovation
RACQ is embracing technology and innovation across various aspects of its operations to enhance member experiences, improve safety, and contribute to a more sustainable future for Queensland. Their initiatives include:
Digital Transformation
- Enhanced Digital Platforms: RACQ is focused on creating seamless and user-friendly digital experiences through its website and mobile app. This includes features like online booking systems, digital membership cards, and personalized services.
- Customer Data Platform (CDP): By centralizing customer data, RACQ aims to gain a comprehensive understanding of member needs, enabling more personalized and efficient service delivery.
- Automation and AI: RACQ is leveraging Robotic Process Automation (RPA) to streamline internal processes, improve efficiency, and free up staff for more complex tasks. They are also exploring the use of AI and machine learning for applications like predictive modeling for roadside assistance, leading to faster dispatch times.
- Cybersecurity: Recognizing the importance of data protection, RACQ invests in robust cybersecurity measures to safeguard member information.
Mobility Innovation
- Electric Vehicle (EV) Support: RACQ is actively involved in supporting the transition to EVs through the Electric Highway, providing charging infrastructure, and offering insurance and roadside assistance for EVs.
- Connected and Autonomous Vehicles (CAVs): RACQ is engaged in research, development, and trials related to CAVs, including autonomous vehicle public transport trials, to understand their potential and ensure safe integration into Queensland's transport network. The RACQ Mobility Centre of Excellence serves as a hub for testing and research in this area.
- Mobility as a Service (MaaS): While a previous trial showed low uptake, RACQ continues to explore innovative mobility solutions that integrate various transport options to provide convenient and efficient travel for members.
- E-scooter Strategy: RACQ has developed a strategy to address the safe and sustainable integration of e-scooters into Queensland's transport landscape, focusing on regulation, safety, and infrastructure.
Safety and Community
- AI-Powered Athlete Discovery App: In partnership with the Queensland Academy of Sport, RACQ supports the "YouFor2032" app, which uses AI to identify potential future sports stars across Queensland.
- Hi-Tech Solutions for Road Worker Safety: RACQ advocates for and supports the use of technology, such as enhanced audio warnings in navigation apps, to improve the safety of road workers.
- Data Analytics for Road Safety: RACQ utilizes data to identify trends and advocate for evidence-based solutions to improve road safety across the state.
Internal Innovation
- Innovation Hubs and Teams: RACQ has established internal teams and initiatives focused on fostering a culture of innovation and exploring new technologies and service models.
- Partnerships with Startups: RACQ collaborates with startups to explore and implement cutting-edge technologies and solutions.
- Rapid Experimentation: RACQ utilizes methodologies like "pretotyping" and rapid experimentation to quickly test new ideas and validate their feasibility before significant investment.
Through these diverse technology and innovation initiatives, RACQ aims to enhance its services, improve safety for Queenslanders, and contribute to a more mobile and sustainable future.
Claims Process
Notify AIA Australia
The first step is to inform AIA Australia as soon as reasonably possible after the insured event occurs.
Complete a claim form
AIA will provide you with a claim form, which you will need to complete with detailed information about the insured event, the policyholder, and the claimant. Ensure all sections are filled accurately and honestly.
Gather Supporting Documentation
You will need to provide supporting documents to substantiate your claim. The specific documents required will depend on the type of claim (e.g., death, disability, illness)
Submit the Claim Form and Documentation
Once the claim form is completed and all necessary supporting documents are gathered, you will need to mail them to the AIA Australia claims team at the address provided on the claim form.
Assessment of the claim
AIA Australia will review the claim form and supporting documentation. They may require further information or clarification during the assessment process, including requesting additional medical reports or conducting independent medical examinations.
Claim decision
After a thorough assessment, AIA Australia will notify the claimant of their decision in writing. If the claim is approved, they will outline the payment details and process. If the claim is declined, they will provide the reasons for the decision.
Payment of benefit
Upon approval, the benefit amount will be paid to the nominated beneficiary or the insured person, according to the terms of the policy.
Partnerships & Affiliations
AIA Australis
RACQ have partnered with AIA Australia to provide life and income protection insurance products. While RACQ no longer underwrites these policies, the partnership was significant in offering members access to life insurance options.
Target Market Determination
RACQ Life Insurance - Target Market Determination
Product: RACQ Life Insurance Life Cover
TMD Effective Date: 1 October 2021
Issuer: AIA Australia Limited (ABN 79 004 837 861, AFSL 230043)
Distributor: RACQ Operations Pty Ltd (ABN 80 009 663 414)
Target Market:
- Customers who have or anticipate having outstanding financial commitments that their estate may not cover in the event of terminal illness, death, TPD, or trauma.
- This includes financial commitments to dependents.
- Specific examples of financial commitments include:
- Mortgage and other debt servicing costs
- Final expenses, and income replacement
- Medical costs, transportation and accommodation costs, and personal palliative care
- Customers who are:
- Australian citizens or permanent residents, or New Zealand citizens
- RACQ customers living permanently in Queensland or specified northern NSW postcodes
- Aged 18-65 (Life Cover), 18-59 (Trauma/TPD) at the time of application
- Meet underwriting requirements (e.g., BMI, lifestyle/medical factors)
- For TPD, not performing heavy manual work or working less than 20 hours per week
- Able to afford to pay premiums
Detailed Key Features:
- Pays a lump sum in the event of diagnosis of terminal illness or death.
- Optional TPD and Trauma Cover can be added
- Maximum cover: $1,000,000 (Life Cover), lower of $750,000 or 100% of life cover (TPD), lower of $250,000 or 50% of life cover (Trauma)
- The policy ceases after a life cover payment is made.
- Claim payments reduce other cover amounts.
When Life Cover Might Not Be Suitable:
- Individuals who:
- Are not Australian citizens or permanent residents, or New Zealand citizens;
- Do not live in Queensland or specified northern NSW postcodes;
- Are outside the eligible age ranges;
- Do not meet underwriting requirements;
- For TPD, perform heavy manual work or work less than 20 hours a week;
- Are unlikely to be able to afford premiums.
Contact Details
Contact Details –RACQ Life Insurance
Company Name: RACQ Life Insurance
Phone: 1800 722 777
Postal Address: GPO Box 3377, Melbourne VIC 3001
Operating Hours: Monday to Friday, 9:00 am to 5:00 pm AEST/AEDST