Cover to relieve the financial pressure caused by suffering one of 37 listed critical illnesses.
Australian residents between the ages of 16 and 69 can apply for up to $25 million in cover.
To 99 years
If you die while covered for life insurance, the agreed cover amount will be paid as a lump sum to your nominated beneficiaries or estate. You can apply for cover up to $25 million.
Your beneficiary or estate will be advanced $15,000 (taken from your cover amount) to assist with funeral expenses, upon evidence of age and receipt of the death certificate.
We pay the death benefit amount if you become terminally ill (it's paid in advance, so it is not payable when you die).
You can be reimbursed the cost of engaging a qualified financial adviser up to $5,000 to prepare a financial plan if a benefit is paid in excess of $200,000 for death or terminal illness.
The cost of grief counselling services for you, your spouse or your partner, can be paid up to $1,000 if a benefit is paid for death or terminal illness.
TPD cover and trauma cover are available as optional covers together with your life insurance cover (trauma cover is also available as standalone cover). You can select these covers in the quote process.
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:
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 69 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.
The cost of your Life Insurance depends on a variety of factors. These include:
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;
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.
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.
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 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.
*15% off on Life cover – RAC WA members are entitled to a 15% reduction (for the first 12 months of cover only) on the standard premium rates for Life cover under the RAC Life Insurance product. This offer is available if you apply for cover before 30 June 2022 and cover is issued. After the first 12 months of cover, your premium rate will no longer attract the 15% reduction – your premium rate for Life cover will revert to the applicable standard rate for your cover. This offer is available once only per new customer and may not be used in conjunction with any other offer.
^NobleOak Awards please see here.