Your Guide to NRMA Life Insurance and Income Protection

Published: September 4, 2018

If you’re an NRMA member and have received an offer to take out life insurance or already have life cover with them and are wondering whether it’s worth it, then we’re here to help you make an informed decision.

We dive into their product offering to bring you the latest on their personal insurance policies. For the best results, request an NRMA online quote from the company and compare it to some of the leading life insurers in Australia.

ComparingExpert does not currently have access to this provider. Visit www.nrma.com.au to request a quote and compare their price and benefits online with some of Australia’s major life insurance companies.

What does NRMA life insurance stand for?

NRMA stands for the National Roads and Motorist's Association. In 2012 they announced their move into the life insurance market with policies provided and managed by TAL. Today they also offer insurance for your car, home, and business, as well as protection when travelling.

How does NRMA compare to other life insurance companies?

One of the biggest attractions to this insurer is the many discounts they provide, including:

  • Up to 35% off when purchasing cover over $300,000.
  • Get 5% off their life insurance premiums when you’re an existing NRMA insurance policyholders.
  • Receive another discount when you add your partner to your policy.
  • Get a month free when you pay annually.

However, as we always say, the cost of your policy is not where the value lies, it’s in the quality of the cover provided and the assurance that you’ll be protected if the worse should happen.

Pros and cons of an NRMA life insurance policy

Advantages Disvadvantages
Usually, you won’t have to undergo any medical tests or complicated application forms, making applying got life cover easy and convenient. Underwriting is generally done at claim time. If you did not give the insurer all the relevant and correct information when you applied, there's a chance your claim will be denied.
Your NRMA policy is guaranteed renewable until you’re 99-years-old. NRMA does not provide trauma insurance.
You can freeze your life insurance premiums, to stay at its current price. However, the amount insured will reduce each year to match the premium you're paying.5 Generally, only stepped premiums are available. Meaning, your premiums increase each year on your policy anniversary as you get older.
You can increase your life cover at any time before your 66th birthday when a significant life event occurs. For example, you got married, had children or bought a house. Their income protection benefit period only extends to a maximum of 5 years and does not cover cancer, stroke or heart attack during the first six months of your policy commencing.

NRMA life insurance review

Life cover provides a lump sum benefit when you die or get diagnosed with a terminal illness with less than 12 months to live.

  • $1.5 million maximum cover amount.
  • Advance payment of $10,000 to pay for funeral expenses as soon as your claim is approved.
  • 18 to 65-year-old Australian Residents are eligible to receive coverage.
  • Free over-the-phone trauma and loss counselling for your loved ones.

Exclusion: No benefit will be paid if death occurs in the first 13 months because of suicide or intentional self-injury.

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NRMA income protection insurance

Receive a monthly benefit of up to 85% of your regular income, minus tax, up to $10,000, when you can no longer work due to sickness or injury. To apply for this cover, you must be between 18 and 60-years-old and work more than 20 hours per week. Cover expires at age 75.

  • Waiting period

    Your choice of 14 or 28 days, 2 or 3 months.

  • Benefit period

    Choose between 6, 12 or 24 months, or 5 years.

If you do not qualify for an income protection policy because of your health or lifestyle, you might still get Essentials Cover which provides up to $3,000 a month if you're not working. A fixed waiting period of 28 days apply and a choice of benefit period of 6, 12 or 24 months.

Optional add-on benefits for an extra fee

Involuntary unemployment

Pays a monthly benefit for up to 85% of your pre-tax income, up to $3,000, for up to 3 months. You must be permanently employed and work 30 hours or more per week to qualify for this benefit. Carefully review the full list of exclusions in the PDS.

Holiday injury cover

Provides a once-off benefit, equal to your first month’s benefit payment (max $3,000), when injured during school or public holidays, or if you’re more than 200km away from home.

Kid's injury cover

Helps you cover the expenses of your kids getting injured by paying up to $50,000 worth of protection. Excludes conditions that were present at birth, or intentional acts. Ends when your child turns 18 or after the total $50,000 has been paid.

Permanent disability cover

If you are permanently unable to perform two or more of the below activities, you'll receive a lump sum benefit between $50,000 and $500,000:

  • Bathing, including cleaning yourself in the shower.
  • Ability to use the toilet; getting on and off.
  • Dressing and undressing yourself.
  • Feeding yourself.
  • To get in and out of bed or a chair.

What's not covered by NRMA income protection?

No claim will be payable if you’re unable to work directly or indirectly because of:

  • Cancer, stroke or heart attack during the first 6 months of your policy starting.
  • Mental health disorders, including alcohol and drug abuse.
  • Normal and uncomplicated pregnancy.
  • War or any act of war.
  • Terrorism, civil commotion and unrest.
  • Intentional self-inflicted act.
  • Committing or attempting to commit a criminal offence.

Please read the NRMA life insurance PDS for more details regarding the list of exclusions.

Frequently asked questions and answers

Who provides NRMA life insurance?

TAL Life Limited issues NRMA life insurance policies. However, the optional Involuntary Unemployment cover is provided by St Andrew's Insurance (Australia) Pty Ltd.

Where can I find the NRMA insurance contact information?

You can call NRMA on 1300 996 143 about your life insurance or income protection queries or visit their website.

Should I buy NRMA life insurance?

Whether or not life cover from the National Roads and Motorist’s Association is a good idea depends on your personal circumstances and budget. While they offer many discounts, which could potentially help with the affordability, their products are limited and have extensive exclusions. We encourage you to carefully review their product disclosure statement (PDS) before making a decision.

How can I buy a policy from them?

You can buy an NRMA life cover policy directly from the company by either calling them or applying online on their website.

How do I cancel my NRMA insurance?

You can cancel your policy by contacting the insurer directly or by logging into your account online, finding your policy, selecting ‘view policy' and then scroll down to the ‘cancel policy' section and select ‘request cancellation'.

What is the NRMA claims process for life insurance?

To claim life cover or income protection, you first need to notify the insurer by calling them on 1300 996 143 and then submitting your claim forms and additional documentation, which your personal claims consultant will help you with.

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