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.

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.

Income Protection cover provides a monthly payment in case you can’t work due to sickness or injury, helping you to support your family and cover essential living expenses. 

If you are aged between 18 and 60 years and work at least 20 hours per week you may be eligible to apply for Income Protection. Income Protection will replace a share if your income if you can’t work due to sickness or injury.

You will be eligible to apply initially for up to 70% of your pre disability income. The maximum monthly benefit is $30,000. 

When you apply you will be asked to select a 30, 60, 90 or 730 day waiting period, and a benefit period of either 1 year, 2 years, 5 years, 10 years, or to age 65. (Only 1 or 2 year Benefit Periods are available if you are over age 55 when you apply).

When deciding how much cover you need, you may wish to think about how much your bills and living expenses cost you each month. Some of the questions to consider include: 

• Do you have debts such as a mortgage, a car loan or credit card instalments?
• Do you have dependants, and associated costs such as childcare or school fees?
• Can you supplement your income with any savings you may have and manage on a lower monthly benefit for a certain period of time, or should you opt for the maximum monthly benefit you are eligible for? 

Under NobleOak’s current underwriting guidelines, Individual Income Protection Insurance is unable to be offered to people working in certain roles which are deemed too high risk. As an industry standard, typically the underwriting guidelines for Individual Income Protection Insurance are much more stringent compared to those for Life cover. 

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, sex, sum insured, smoker status and health are elements which will factor into the actual premium amount (including any applicable premium loading) charged by NobleOak.

If you’re wondering how much income protection insurance you might need, you can start by considering the following questions:

• Do you have debts such as a mortgage, car loan, or credit card instalments?
• Do you have dependants, and associated costs such as childcare or school fees?
• Do you have savings that you could use to supplement your income if you were not working?

If you answered ‘yes’ to either of the first two questions, take a moment to calculate how much money you would need each month to continue meeting these financial obligations, if you were suddenly unable to earn an income.

Your answer to the third question will help to determine your Monthly Benefit amount.

With RAC My Protection Plan, you can choose cover of up to 70% of your regular pre-tax income (subject to some limitations), up to a maximum of $30,000 per month.

You will be asked to select a Benefit Period when you apply for this product.

The Benefit Period is the maximum period of time that you can receive a monthly benefit (and a Monthly Superannuation Benefit if it applies) while you are continuously Disabled. The choices are:

• 1, 2, 5 or 10 years* - the total number of years you can receive the benefit for any one claim event, or
• To age 65 - the Benefit Period ends at the policy anniversary while you are age 65

The Benefit Period starts at the end of the Waiting Period. Premiums for shorter Benefit Periods are generally lower than those for a longer Benefit Period.

*Note: Only 1 or 2 year Benefit Periods are available if you are over age 55 when you apply.

This will depend on the benefit period you select when you purchase your Income Protection Insurance policy. A common option is coverage for a specific period, such as two, five years or ten years. Another option is to choose coverage that lasts until a specific age, like 65. RAC Life Insurance also offers a new innovative ten-year benefit period which was introduced in late 2024.

Your Income Protection Insurance will remain active as long as you continue to pay your premiums and meet the policy conditions. Your policy can be tailored to align with your working years, ensuring you’re covered during the period you’re most financially dependent on your income.  All policies expire at the policy anniversary after age 65.

Yes, it is possible to have more than one Income Protection Insurance policy, but there are limitations. Insurers typically restrict the total amount of coverage you can claim across all policies to prevent you from receiving benefits that exceed your actual income. When applying for a new policy, insurers usually ask about existing coverage, and your combined benefits from all policies are capped at a percentage of your income, often around 70%.

Having multiple policies might be beneficial if you want to supplement an existing policy with additional coverage, such as extending the benefit period or addressing gaps in an employer-provided plan. Consulting a financial adviser can potentially help you navigate any complexities and make informed decisions about your income protection needs.

It is important to be aware that RAC Income Protection Insurance does not cover employment termination (unless your employment is terminated because you have suffered an insured event such as TPD). If your employer terminates your employment or you are made redundant, you will not be eligible to claim on your Income Protection Insurance.

Benefits will also not be payable by us if your sickness or injury is a result of, or related to:

• Normal and uncomplicated pregnancy, miscarriage or childbirth;
• Your participation in criminal activity or your incarceration;
• Self-inflicted injury or attempted suicide (for the first 13 months of cover);
• A permanent or temporary banning, deregistration, disqualification or restriction being placed on you from performing all or some of the duties of your regular occupation;
• War or an act of war; or
• Any sickness or injury that occurred before your insurance commencement date, unless clearly disclosed to and accepted by us.