What is life insurance and do I need it?

Understand different insurance products to find the right cover to protect you and your family.
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What is Life Insurance?

Life insurance can help protect you and your loved ones if you become terminally ill or pass away. Your family will receive a lump sum payment to help cover any debts, provide for future expenses and the money can help your family continue their life in Queensland.

What is Income Protection Insurance?

We all rely on our income to pay the bills and care for our family, but what would happen if you’re unable to work due to illness or injury? Income protection insurance provides a monthly benefit that typically covers up to 70% of your Pre-Disability Income*. Income protection insurance can also be called ‘income replacement’, ‘disability income insurance’ or ‘salary continuance insurance’ and the period of time it covers depends on the policy you buy.

What is Trauma Insurance?

Trauma insurance, also known as ‘critical illness insurance’, pays a lump sum if you suffer a trauma event like a heart attack, cancer or stroke. This type of insurance can help take financial pressure off your family so you can spend time recovering and not worrying about your finances. You can often choose to add this type of protection to your life insurance policy.

What is Total and Permanent Disability Insurance (TPD)?

Total and Permanent Disability (TPD) insurance pays a lump sum if you become totally and permanently disabled and can’t work again. This benefit could help fund lifestyle changes, make home modifications, cover the cost of long-term care or medical expenses, and may cover some of your existing debts too. You can often choose to add this type of protection into your life insurance policy so you’re protected for more.

Compare RACQ Insurance products

If you want to protect your family but don’t know which cover’s right for you, check out our life insurance options and choose the right policy to protect those you love.

What do you need covered?  What insurance offers financial protection 
 Loss of life  Life insurance
 Permanent injury Total and permanent disability insurance, and/or
Income protection insurance
 Temperorary sickness or disability  Income protection insurance, and/or
Trauma insurance

RACQ’s Life and Income Protection Insurance suite of products described on this website 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) and Target Market Determination (TMD) available on this website 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.

* Benefit is paid after nominated ‘Waiting Period’ - 30 or 90 days. For exclusions refer to Income Protection PDS page 18 – ‘What you’re not covered for’. Also refer to ‘Benefit Limitations’ on page 26.

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Things to note

The information in this article has been prepared for general information purposes only and is not intended as legal advice or specific advice to any particular person. Any advice contained in the document is general advice, not intended as legal advice or professional advice and does not take into account any person’s particular circumstances. Before acting on anything based on this advice you should consider its appropriateness to you, having regard to your objectives and needs.