Life Insurance is an important tool for people who have financial dependents, allowing you to help provide for your loved ones. RAC My Protection Plan offers several different insurance types, each providing a benefit for different scenarios. You can choose one or more of the following insurance types: 

• Life cover: Pays a lumpsum payment if you die or become are terminally ill
• Income protection cover: Offers a monthly benefit if you are unable to work due to sickness or injury and need to take extended leave from work
• Total Permanent Disability (TPD) cover: Pays a lump sum payment if you become permanently disabled due to sickness or injury and are unable to work again
• Trauma cover: Pays a lump sum payment if you are diagnosed with a specified critical illness (see full list in the in the PDS)

RAC Life Insurance is a fully-underwritten life insurance product. That means the insurer asks you about your health and lifestyle at the start, not when you make a claim. As long as you correctly disclose the information requested when you apply, you can be more confident that a future claim will be paid as outlined in the Product Disclosure Statement than with other types of cover.

NobleOak Life Limited (NobleOak), an award winning life insurer, is the issuer of RAC Life Insurance. NobleOak is an Australian life insurer that was established in 1877 and has been protecting Australians for over 145 years.

NobleOak is regulated by the Australian Prudential Regulation Authority (APRA), and holds an Australian Financial Services License issued by the Australian Securities and Investments Commission (ASIC).

RAC Life Insurance is reinsured through an arrangement NobleOak has with Hannover Life Re of Australasia Ltd.

NobleOak is also a member of the Financial Services Council of Australia (FSC) and a signatory to the FSC Code of Practice for Life Insurers.

RAC has partnered with NobleOak to offer RAC Life Insurance, reflecting their shared commitment to integrity, exceptional customer service, and community benevolence.

Policies that are ‘fully underwritten’ are tailored to your individual circumstances. By answering more questions at the time of application, the life insurer is better able to make an assessment of the potential risks (health and other factors) of offering insurance cover to you.

The main benefit is that the terms of cover are specifically tailored to you, which may reduce the costs of your cover depending on your circumstances. It can also mean greater peace of mind for you and your family, as you know exactly what you are covered for.

For policies that are partially underwritten or have no underwriting. If something in your medical history in or the manner of your death is considered significant, there is a chance that your claim entitlement may be significantly reduced, or even denied.

By taking out fully underwritten life insurance cover, you can have more certainty at claims time because the life insurer already has certain information about you.

Life cover will allow you to help protect your family against financial hardship with a lump sum benefit if you were to pass away or are diagnosed with a terminal illness that is likely to result in death within 24 months.

If you are aged between 16 and 69 years you can apply for up to $25 million in Life cover. If you are between the ages of 70 and 74, you can apply for up to $500,000 in life cover. Cover can remain in place to age 99.

With RAC Life Insurance, there are other benefits in addition to the lump sum payment including:

• Funeral Advance Benefit
• Family and Carer Support Benefit
• Financial Advice Benefit
• Grief Counselling Benefit

You can find out more about these benefits in the PDS.

As an option, you also can add Total Permanent Disability (TPD) or Trauma Insurance cover to your life cover policy

• If you add TPD cover to your life cover, any approved claim for a TPD event will reduce your Life cover by the amount of the TPD cover payment.
• Similarly, if you add Trauma cover to your Life cover, then any approved claim for a Trauma event will reduce the Life cover by the amount of the Trauma cover payment.

The cost of Life Insurance in Australia depends on various factors such as:

• Age
• Sex
• Smoking status
• Occupation
• Lifestyle
• Medical history
• Your desired level of cover

Premiums can be paid monthly or yearly to suit your budget. You can choose the types and amounts of cover you want, and you will only pay for the cover you choose.

RAC Life Insurance products offer variable age-stepped premiums. This means your premiums will increase each year with your age, as the chance of needing to make a claim grows greater with age.

To help ensure your cover keeps up with the rising cost of living, your sum insured may increase each year to guard against inflation. This increase is automatically applied at each policy anniversary and is based on the Consumer Price Index (CPI) or 3%, whichever is more (for most covers)*. Your premium will adjust to reflect the increased cover. You do have the option to decline each year’s increase or cancel these automatic increases by letting us know in writing. If you decline three consecutive increases, no further increases will be made. If you opt out of these increases, any rise in your premium will only be due to your increasing age.

*Note: Age-stepped premiums and annual inflation (CPI) increases apply to all main RAC Life Insurance products, including Life Cover, Total and Permanent Disability (TPD), Trauma Insurance, and Income Protection. The automatic inflation increase is the greater of CPI or 3% for lump sum covers, and the lesser of CPI or 3% for Income Protection. You can opt out of these increases at any time.

There are several ways you can manage your insurance to help reduce your premium:

1. Activate the Premium Freeze Benefit

If you want to manage the cost of your insurance, you can choose to activate the Premium Freeze Benefit at any time. This means your future premiums will stay the same as they are when you make the request. However, your sum insured will reduce each year to the amount that your chosen premium will pay for, as you get older. You can contact us at any time to end the Premium Freeze Benefit, and the premium freeze will end on the next anniversary of your cover.

2. Other options to manage your premium include:
• Switching off automatic inflation increases
• Reducing your sum insured
• Altering the benefit features on your policy
• Reducing optional benefits


3. Financial Hardship support

If you are experiencing financial hardship, you may be eligible for a temporary premium waiver under certain conditions.

Life Insurance purchased through super can be a good way to ensure you at least have some level of cover, which is always better than none at all.

Some clients may find that through their superannuation, Life cover generally cuts off at age 65 or 70, and other covers may cut off even earlier. With RAC Life Insurance (which is outside super), you can hold Life cover up until age 99. Some other things you may wish to consider if you have life insurance in your super would be:

• Do you have adequate cover for your needs
• Is it transferable between funds
• Reduction of super fund balance

NobleOak, the issuer of RAC Life Insurance is Australia's most awarded direct life insurer 2019-2025.

Your cover will start once it is accepted by the RAC Life Insurance team and communicated to you in writing. Until then, we may ask for more information to fully assess your application. Your duty to disclose any relevant information continues right up the point we accept your application.

When your insurance cover begins, you will receive a confirmation email outlining the full details of your insurance. Please keep this saved together with the PDS for future reference.

However, it’s important to be aware of any waiting periods or specific conditions that may apply to your policy. For example, certain benefits, such as those for pre-existing health conditions, may have waiting periods or exclusions. If you take out cover with RAC Life Insurance, issued by NobleOak we will provide you with clear and transparent information about when your coverage begins, and any terms you need to be aware of. You will also need to pay your premiums promptly when the policy comes up for renewal. Please also be aware that Life cover contains a 13-month suicide exclusion clause.

You will also receive an annual advice confirming your insurance details, including your insured benefits and premium payable.

Interim Accidental Cover is provided to you while your application is under assessment;

• For Life cover applicants – up to $1.5 million
• For TPD cover applicants – up to $500,000
• For Trauma cover applicants – up to $500,000
• For Income Protection cover applicants – we will pay the monthly cover amount applied for up to 24 months to a maximum of $4,000 per month

Subject to the eligibility and terms referenced in the PDS, these benefits are provided at no extra cost to you.

Because your cover is tailored, it depends on your individual circumstances. Your application may be accepted same day, however it can sometimes take longer depending on whether we need medicals or reports to finalise the assessment.

You can pay your premiums monthly or annually through a direct debit, or a credit card (MasterCard or Visa). It's up to you.

If you pay annually you save 5% off your premiums.

As part of the underwriting process, your application for Life Insurance may result in the requirement for a blood test, or a medical examination. If this is the case, NobleOak will arrange this, and do so at their expense.

This process is usually quick and would take place in your home or office. It helps ensure the cover you require can be tailored to your personal situation and the premiums you will pay are calculated accordingly.

Once you have been accepted and receive your welcome pack, you have a 30 day cooling off period to ensure your cover suits your needs. If you need to make any changes, you can contact us and we will arrange this promptly for you.

During the cooling off period, you may cancel your insurance cover and any premiums paid will be refunded in full. Otherwise, please keep your documentation in a safe place for future reference and in case of any future claims.

Making a claim can be a difficult and emotional time. We aim to make the process as straightforward as possible. All customers on claim are assigned a dedicated Australian based claims case manager to guide them through the process.

Visit our claims page for instructions to claim with either AIA or NobleOak.

New RAC Life Insurance policies are no longer available through our former arrangement with AIA Australia. 

If you hold a life insurance policy issued through AIA Australia and would like to contact a service or claim representative, please see the details below.

Service queries

Opening times

Monday to Friday 9am to 5pm (AEST/AEDT)

Phone

1800 069 922

Email

au.servicelifeinsurance@aia.com

Claims queries

Opening times

Monday to Friday 9am to 5pm (AEST/AEDT)

Phone

1800 069 922

Email

au.claimslifeinsurance@aia.com

RAC Life, TPD and Income Protection Insurance issued by NobleOak, can all be included in an SMSF. Please note though that where cover is taken through an SMSF (that is, the trustee of the SMSF will own the cover) there are certain limitations because of the Superannuation Industry Supervision Act 1993 (SIS) requirements. These apply to cover owned by a superannuation trustee of an SMSF and, where applicable, they are mentioned in the PDS.

RAC Life Insurance offers high levels of cover. You can apply for up to $25 million cover of Life Cover and up to $5 million of Total and Permanent Disability (TPD) cover, without having to go through a financial adviser.

Please call us on 1300 342 194 to arrange cover, or select SMSF at the end of your quote online.