How much life insurance cover do you need?

Finding the right life insurance starts with looking at your life stage and events. This makes it easier to choose the right life insurance policy and it’ll help to calculate how much cover you really need.

Everyone’s different and no two life insurance policies will be the same. Take a little time to consider what you’re trying to protect and get a life insurance policy that works for your life.

What should I consider when getting life insurance?

Take a look at your life as a whole. What would happen if you suddenly passed away or were unable to work? Do you have debts or children relying on you? Life Insurance can play a big role in keeping your family protected financially. When you’re getting a policy consider things like your age, lifestyle, financial obligations and dependents. This can all help identify which type of life insurance is right for you.

When should I look at getting life insurance?

As you start to build your wealth and begin securing your assets for the future, the need for life insurance grows. The older you are and the more expenses you acquire, the more vulnerable you could become without life cover in place. This doesn’t mean life insurance is only for mature people. Young Queenslanders often have fewer financial obligations and may not need to get a comprehensive life insurance policy. This doesn’t mean it’s right to have all or nothing. There are different types of life insurance policies that can help protect your family if you pass away or can offer income protection if you're unable to work for a period of time. It pays to check your assets and lifestyle to find the right insurance for your life stage.

Being underinsured can make you financially vulnerable so it’s always worth rechecking your policy to ensure it’s working for you.


What life events should prompt me to get life insurance?

Key events in your life usually encourage you to start protecting yourself and your loved ones. Typically, Queenslanders start to consider life insurance when;

  • buying a house
  • getting married
  • having children
  • investing in property
  • saving for a retirement fund.

How will life insurance affect my financial obligations?

There are several types of life insurance which have been designed to help protect yourself, your family and your financial obligations. Whether you pass away, you’re sick, ill or unable to work, the right policy can help your family keep on top of your expenses.

Can life insurance help protect my children?

If you were to pass away would it be difficult for your family to continue living the same lifestyle you have now? If you have debt and children to support, it could be worth investing in a life insurance policy. Life insurance can give you a lump sum payout if you’re terminally ill and income protection can provide a monthly income stream if you’re absent from work due to an accident or illness. If you don’t have any children your partner may still find it hard to manage on just their income so consider a policy to protect your spouse too.

Which type of life insurance should I get?

If you’re terminally ill or pass away a Life Insurance policy can help your family when they need it most. With the option to add in Total and Permanent Disability or Trauma cover, you can create a life insurance policy that suits your lifestyle. If you’re after protection for your income you could consider Income Protection Insurance. Want cover against unforeseen accidents?

How much life insurance do I need?

You can work out how much cover you need by calculating your expenses including your mortgage, car repayments, insurance premiums, children’s school fees and household expenses including food, utility bills and anything else you pay on a regular basis.

Explore our range of RACQ Life Insurance products and find the cover that’s right for you.

If you’re after a little extra help give us a call 1800 722 777.

The Life and Income Protection Insurance suite of products described is distributed by RACQ Operations Pty Ltd ABN 80 009 663 414, Authorised Representative Number 234978 (RACQO), an authorised representative of AIA Financial Services Limited ABN 68 008 540 252, AFSL 231109 (AIAFS) and is issued by AIA Australia Limited ABN 79 004 837 861, AFSL 230043 (AIAA). RACQO is a distributor only; it does not sell, issue or guarantee these products. AIAFS and other authorised representatives of AIAFS are also involved in distributing these products. Descriptions of product benefits and features are a summary only. You should consider factors like your objectives, financial situation and needs and read the relevant Product Disclosure Statement (PDS) available at before deciding to acquire or continuing to hold any of these products. The information on this website is general and does not take such factors into account so you should consider its appropriateness in the context of such factors. Cover is subject to terms, conditions, limitations and exclusions.