What does TPD Insurance cover provide?
You will be covered for
If you become totally and permanently disabled due to sickness or injury and unable to work again, you will be paid an agreed cover amount as a lump sum (as this is an option with life cover, life cover will reduce by the amount paid).
How much can I apply for?
Australian Residents between the ages of 16 and 59 who take out RAC Life Insurance can apply for up to their life cover amount (to a limit of $5 million in cover).
Note: If your occupation is Home Duties, the Domestic Duties definition for TPD will apply.
Maximum cover level
Maximum entry age
Guaranteed renewable age
To 75 years
What are some of the key benefits?
Financial advice benefit
You may need some professional advice to ensure that the proceeds of a Total & Permanent Disability claim payment are managed appropriately. That is why you will be reimbursed the cost of engaging a qualified and licensed financial adviser, up to $5,000, to prepare a financial plan if you are paid a TPD benefit in excess of $200,000.
Future increases benefit
You can increase your cover amount by the lesser of $100,000 or 20% of the original cover amount without the need to provide further medical evidence if one of the specified allowable events occurs.
As an option, you can add Total Permanent Disability (TPD) cover to your Life cover.
With TPD cover, if you are aged between 16 and 59 years you can receive a lump sum payment of up to $5 million if you become permanently disabled as the result of a sickness or injury (either mental or physical) and are unable to return to work. Cover can remain in place to age 75.
In the event of a claim, the funds may help you modify your home, replace lost income and clear debts.
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.
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.
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.
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.
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.