Income Protection cover (referenced as Disability Income cover within the PDS) 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 55 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. 

When you apply you will be asked to select a 30 or 90 day waiting period, and a benefit period of either 2 years, 5 years, or to age 65.

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.

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.

The cost of your Life Insurance depends on a variety of factors. These include:

• the type(s) of cover you choose
• the level of cover you choose for the cover type(s) you select
• your age
• your gender 
• whether you smoke or not 
• your occupation 
• your lifestyle attributes
• your medical history 

The covers that are available within RAC Life Insurance use stepped premiums. This means your premiums attached to the cover type(s) you select will increase each year with your age.

In addition, your premium will increase each year to guard your cover against inflation. This helps ensure your level of cover for the cover type(s) you select remain relevant to your needs. You do have the option to stop the indexation of your cover if you prefer, in which case any rise in your premium will only be due to your increasing age.

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 million
• For TPD cover applicants – up to $500,000
• For Trauma cover applicants – up to $500,000 
• For Disability Income cover applicants – up a $200,000 (for up to 24 months)

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

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.

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

Email

enquiries@lifeinsurance.rac.com.au

Claims queries

Opening times

Monday to Friday 9am to 5pm

Phone

1800 069 922

Email

claims@lifeinsurance.rac.com.au

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.