Some features of RAC Life Insurance, issued by NobleOak
Award winning coverBrought to you by NobleOak, Australia's most awarded Direct Life Insurer of 2022^ with over 145 years heritage.
Claims processApply over the phone with help from the RAC Life Insurance team. All claims made are managed by a team of dedicated claims consultants.
Tailored by youYour policy is a fully underwritten product tailored by you. Fully underwritten cover helps reduce unforeseen delays or surprises in the event of a claim.
Brought to you by NobleOak, one of Australia’s longest standing life insurers with over 145 years heritage.
Life insurance FAQs
Depending on the cover type(s) you choose, and if you meet the conditions of cover, you would be eligible to claim if you were to pass away (life cover), could not work again due to a sickness or injury (TPD cover which provides a lump sum payment), were unable to work due to sickness or injury (income protection cover which provided a monthly payment for your chosen benefit period, whilst you are unable to work) or were diagnosed with a serious medical condition listed in the PDS (trauma cover).
You can choose:
- Life (death) cover
- Income protection cover (known as disability income insurance)
- Total Permanent Disability (TPD) cover
- Trauma cover
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 confident that a future claim will be paid as outlined in the Product Disclosure Statement.
NobleOak Life Limited (NobleOak), Australia’s most awarded direct life insurer of 2021 (link to FAQ below), is the issuer of RAC Life Insurance. They are an Australian life insurer that was established in 1877 and have been protecting Australians for over 140 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.
Life cover will allow you to 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 a period of 24 months.
If you are aged between 16 and 74 years you can apply for up to $25 million in Life cover. Cover can remain in place to age 99.
Generally, people take a look at their current and future financial situation – such as the size of their mortgage, any other large debts, and future living costs – in arriving at a Life cover amount that may be suitable.
In the event of the insured person’s death, with RAC Life Insurance, an advance payment of $15,000 will also be available from the Life cover amount that you have secured to assist with funeral expenses. This can help to lessen the financial stress at a very emotional time so your family focus on their grief without the added worry of budgeting for the costs associated with a funeral.
As an option, you also can add Total Permanent Disability (TPD) cover or Trauma Insurance within your Life Cover. If you add TPD cover to your Life cover then 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.
Determining the level of cover you need for the cover type(s) you select depends on your personal circumstances and financial position.
You may wish to consider the stage of life you are in, your level of debt, and other ongoing financial commitments, before taking out cover.
Some clients may find that through their superannuation, Life cover generally cuts off at age 65 or 70, and TPD cover may cut off even earlier. With RAC Life Insurance, you can hold Life cover up until age 99, and TPD cover through to age 75.
NobleOak Life, the issuer of RAC Life Insurance is Australia’s most awarded direct life insurer of 2021. This includes:
Canstar Outstanding Value Awards (2016, 2017, 2018, 2019, 2020 and 2021)
NobleOak is the only Life Insurer to win the prestigious Canstar Outstanding Value Award for their Premium Life Direct Life Insurance product for six years running, and Income Protection Insurance product for six years running.
Canstar has a team of over 80 people who collect, analyse and research over 16,000 products, including Life Insurance and Income Protection. Their star rating system is designed to help consumers find the right product based on the best mix of features and price.
Feefo Platinum and Gold Trusted Service Awards Platinum (2020 and 2021) Gold (2017, 2018 and 2019)
NobleOak has received a second Feefo Platinum Trusted Service award in 2021. To earn a Platinum Trusted Service award, businesses must have received at least 50 reviews between 1 January and 31 December, achieve a Feefo Service rating of at least 4.5 out of 5, and maintain this for three or more consecutive years.
Feefo is an independent organisation which provides a platform for businesses to receive reviews independently from clients.
Finder Best Life Insurer, Life Insurance and Income Protection Life Insurer (2020 and 2021), Life Insurance (2019, 2020, and 2021) and Income Protection (2020 and 2021)
The annual Finder awards recognise Australia’s most competitive offerings for that year, as well as products that are “challenging the status quo.
Finder is a comparison site helping over 2 million Australians each month find what they need from 1,800+ brands across 100+ categories.
Mozo Experts Choice Awards - Life Insurer of the Year (2019, 2020, and 2021 and 2022)
The Experts Choice Awards highlight products in the marketplace that Mozo believes offer exceptional value and exceptional quality to Australian consumers.
Mozo is a comparison site allowing Australians to compare and save on financial products, such as home loans, credit cards and insurance.
Plan for Life Awards - Overall Excellence (2018, 2019, 2020 and 2021) and Customer Service (2020 and 2021)
NobleOak is the winner of the prestigious Plan for Life Overall Direct Life Insurance Excellence Award in 2021 for the fourth consecutive year. NobleOak has also picked up awards for its TPD product (Premium Life Direct – TPD Rider), the Income Protection Award for (My Protection Plan – Income Protection Cover) and Customer Service.
Plan for Life (formerly Strategic Insight) are specialists in providing accurate statistical information and analyses covering the financial services, funds management and life insurance markets.
Grist Top Rated Life Insurance Sales Contact Centre (2020)
In 2020, NobleOak was recognized as the number one Life Insurance contact centre in Australia by GRIST. NobleOak was also ranked number 2 out of 62 Australian contact centers across nine industries.
GRIST is an independent tactical consulting and behavioural analytics company. Each year GRIST runs a project to identify Australia's best - most consistent, engaging and compelling - contact centre sales teams.
The only exclusion is with Life cover, where suicide within the first 13 months of holding a policy is not covered. Check the RAC Life Insurance PDS for further information.
Your application for RAC Life Insurance will be assessed upfront, where we will ask you a series of health and lifestyle questions and collect the relevant information. If there are any special acceptance terms that are required to be noted on your policy, we will advise you prior to the enforcement of your policy.
The premium you pay depends on your circumstances, including but not limited to:
- The amount of cover and the type of insurance benefits selected
- Your age – premiums generally increase with age as the likelihood of a claim increases
- Your gender
- Your occupation
- Whether or not you smoke / vape tobacco – premiums are higher for smokers
- The options and selections you make when taking out your cover, including the chosen Waiting Period and Benefit Period for Disability Income Insurance – premiums are higher for shorter Waiting Periods and longer Benefit Periods
- The frequency of premium payments you choose (monthly or annual payments are available)
- When your cover started
- Your state of health, family medical history, lifestyle, leisure activities, and other relevant factors considered during the assessment of your application (premium loadings may apply).
Cover amounts, except in the case of Business Expenses Insurance and Disability Income Insurance, will be automatically increased at each anniversary based on the previous year’s increase in the Consumer Price Index or 3%, whichever is the greater. Indexation increases stop at age 99 for Life Insurance, age 65 for TPD Insurance, and age 60 for Trauma Insurance. Your premium will automatically adjust to reflect the increase in cover. You may cancel these automatic increases by contacting us.
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 be issued with an acceptance letter outlining the full details of your insurance. Please keep your letter together with the PDS for future reference.
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 Disability Income cover applicants – we will pay the monthly cover amount applied for up to 24 months to a maximum of $2,000 per month
Subject to the eligibility and terms referenced in the PDS, these benefits are provided at no extra cost to you.
It generally takes 1-3 business 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.
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, we will arrange this, and do so at our expense.
This process is usually quick and would take place in your home or office. It ensures 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.
We understand that many people will experience changes in their lives which will impact their financial responsibilities. As you move through the different stages of your life, you may find that the insurance cover you attained at the outset doesn’t cover your evolving needs.
With Life cover and TPD cover, with the RAC Life Insurance Future Increases Benefit, you can increase your cover amount by as much as $100,000 (depending on your original cover amount) within any year without having to provide further medical evidence. This will apply to the following allowable events:
- You take out or increase a mortgage on your primary place of residence
- You marry, officially register a partnership or commence a de facto relationship recognised at law
- You or your partner gives birth to or adopts a child
- Your spouse dies
- You get a divorce
To be eligible, you must be less than 60 years of age when the allowable event occurs and you must notify NobleOak within 90 days of the event. While you will not have to provide further medical evidence, however you will be required to provide appropriate documentation to support the request. Increases to the original cover amount can only be requested once per year and the total value of increases cannot exceed 100% of your original cover amount.
With RAC Life Insurance, you can decrease your cover level (on any cover type you have attained) at any time.
Making a claim can be a difficult and emotional time. We aim to make the process as straightforward as possible.
The issuer of RAC Life Insurance, NobleOak has a strong claim philosophy built on a fundamental desire to put the client first at all times. When making a claim, you or your beneficiary will be assigned a dedicated claims consultant to assist with the process.
As a first step, the claims team can be contacted on 1300 342 194. They will walk you through the process, send you the required documentation to complete and explain what other documentation may be required.
Once the claim is assessed, you will be advised of the outcome promptly. If accepted, payments are usually made within five business days.
If your policy was issued prior to October 4th 2021, visit our our claims page to claim with either AIA or NobleOak.
If you’re over 18 and not already an RAC member when you take out RAC Life Insurance, the policy owner will automatically become a Red Card member (excepting policies owned by an entity such as a superannuation fund or trust). This means you'll be able to make the most of a great range of benefits. You can find out more by visiting rac.com.au/memberbenefits.
It is important that the RAC Life Insurance products and services are meeting your expectations. Perhaps there has been a mistake, you feel more should be done, or would like to recognise someone for they great work they have done to assist you. Whatever the reason, please get in touch through the following:
New RAC Life Insurance policies are no longer available through our former arrangement with AIA Australia.
If you hold an existing RAC Life Insurance policy issued through AIA Australia there’s no change to your cover. If you would like to contact a service or claim representative, please see the details below.
RAC Life insurance, TPD insurance, 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.
There are a number of potential benefits to holding life insurance in an SMSF, including increased personal cash flow and the effective tax deductibility of the insurance premiums to the Trustee of the superfund. Because superannuation is a complex area which changes from time to time, we suggest you obtain tax or accounting advice when considering your taxation affairs.
Because your insurance premiums are paid for by your SMSF, you no longer have to come up with the additional money from some other source. This can be useful for anyone who needs to maintain their after-tax cash flow, but still understands the importance of personal risk insurance. Premiums are paid from the fund instead of out of your own pocket.
Your SMSF may also be able to claim a tax deduction on the premiums.
In addition, you have the flexibility to move your insurance out of your SMSF without cancelling your plan should you decide to do so (and assuming the SMSF trustee permits this). This could be beneficial if your health deteriorates, your SMSF members’ requirements changes, or you no longer want to pay premiums out of your SMSF funds.
RAC Life Insurance is underwritten by NobleOak. Under NobleOak’s current underwriting guidelines, Individual Disability Income Insurance (Income Protection) is unable to be offered to people working in certain roles which are deemed as high risk. As an industry standard, typically the underwriting guidelines for Individual Disability Income Insurance are much more stringent compared to those for Death cover. For example, some specific mining occupations and ‘fly in - fly out’ (FIFO) workers are deemed high risk due to a number of factors including the additional accident risk.
Also, keep in mind that as with all income protection products, other eligibility criteria will apply. For RAC Life Insurance Income Protection cover, you have to be an Australian resident between the ages of 18 and 55 to take out cover, and be working at least 20 hours per week.
Please note that the issue of cover is subject to underwriting and confirmation of acceptance by NobleOak of your application. Your age, occupation, pastimes, gender, sum insured, smoker status and health are elements which will factor into the actual premium amount (including any applicable premium loading) charged by NobleOak.
Please call us on 1300 342 194 if you have questions.
The RAC Life Insurance suite of products (RAC Life Insurance) is distributed and issued by NobleOak Life Limited, AFSL 247302 (NOL). NOL and its representatives handle all claims. RAC Insurance Pty Ltd does not distribute, issue or guarantee these products. The information on this website is factual information only, and is not financial advice. 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 via this website as well as our Financial Services Guide before deciding to acquire RAC Life Insurance.
You should not cancel any existing life insurance policy until you have been informed in writing that your replacement cover is in place.
RAC receives a commission from NOL for policies issued by NOL to RAC members.
†NobleOak Awards please see here.