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 2024. Click here to find out more.
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.
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 $4,000 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.
Visit our our claims page for instructions 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.
Service queries
- Opening times
- Monday to Friday 9am to 5pm
- Phone
- 1800 069 922
- au.servicelifeinsurance@aia.com
Claims queries
- Opening times
- Monday to Friday 9am to 5pm
- Phone
- 1800 069 922
- au.claimslifeinsurance@aia.com
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 Income Protection Insurance 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 Income Protection 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 Income Protection cover, you have to be an Australian resident between the ages of 18 and 60 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.
