Any questions
Call us on 1300 342 194 Monday to Thursday 6am to 6pm or Fridays 6am to 4pm. Or you can email sales@raclifeinsurance.nobleoak.com.au
TPD cover is available as an option with your RAC Life Insurance cover
Receive a lump sum payment of up $5 million cover if you become permanently disabled as the result of a sickness or injury and are unable to work again.
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).
See some of the key features and benefits
Who can apply?
Australian Residents between the ages of 16 and 59 who take out RAC Life Insurance can apply for up to their life cover amount.
Maximum cover level
$5 million
Maximum entry age
59 years
Guaranteed renewable age
To 75 years
Choice of TPD definition
When you apply for TPD Insurance you will need to select the TPD definition you want. Any Occupation, Own Occupation or Domestic Duties. More information avaiable in the PDS. If working less than 15 hours a week, only the Domestic Duties definition is available.
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. If your Sum Insured is more than $1 million and your insurance has been in place for at least 2 years, the upper limit on this benefit is increased to $10,000
Future increases benefit
You can increase your Sum Insured without the need to provide further medical evidence if a future increase event occurs while you are less than 60 years of age. Eligibility is subject to limitations and specified events.
TPD FAQs
Why should I consider RAC Life Insurance, issued by NobleOak?
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.
Who is the issuer of RAC Life Insurance?
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.
What is fully underwritten cover?
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.
Will I need to have a medical or blood test?
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.
What is Total Permanent Disability (TPD) cover?
Total and Permanent Disability (TPD) Insurance provides a lump sum when you are severely disabled and become unlikely to work ever again solely due to illness or injury. TPD Insurance is available as an optional add-on to Life cover. To be eligible, you will need to meet the definition requirements. There will be a 3 month waiting period before you will be eligible to receive benefits and there will be an assessment at claim time.
You can apply for an amount between $50,000 and $5M of TPD Cover provided it is not higher than your Life cover Sum Insured.
You can choose from the three types of cover:
- Own Occupation: Pays out if you are permanently unlikely to work in your specific occupation. This cover tends to be more expensive than ‘any occupation’ cover
- Any Occupation: Pays out if you are permanently unlikely to work in any job suited to your education, training, or experience
- Domestic Duties: Pays out if you’re unlikely to ever again perform your usual unpaid Domestic Duties
To make a claim, you’ll typically need to provide medical, occupational and/or financial evidence confirming that your condition meets the definition of total and permanent disability. Once approved, the lump sum benefit is paid directly to you, allowing you to use the funds as needed. This payout can help cover ongoing medical expenses, rehabilitation, home modifications, debt repayments, and daily living costs.
Does Life insurance cover cancer?
Yes: most Life cover policies, including RAC Life Insurance issued by NobleOak, cover death resulting from cancer. It’s important to note that the claim will be assessed based on the terms and conditions of the policy, so full disclosure of medical history during the application process is essential to ensure coverage.
Trauma Insurance provides a lump sum benefit if you are diagnosed with a specified critical illness, such as cancer, and survive for a defined period. This benefit can be used to cover treatment costs, rehabilitation, or other expenses – allowing you to focus on recovery.
What is the difference between Any Occupation and Own Occupation?
Total and Permanent Disability (TPD) insurance provides a lump sum payment if you become severely disabled due to illness or injury and cannot work for three months and are unlikely to ever work again. The definitions that you will be assessed at claim time are different depending if you have an “own” or “any” occupation definition.
Any Occupation
This is where we consider your current occupation and any other suited occupation (given your education, training and experience) in deciding whether you are totally and permanently disabled. This is the only TPD definition that fits with superannuation arrangements and therefore is available for Trustee Members.
Own Occupation
This is where we consider only your current occupation in deciding whether you are ‘totally and permanently disabled.’ This definition is available for a select range of occupations, typically professional and white collar. This definition costs more than ‘Any Occupation.’
This financial support and lump sum benefit, when you cannot work and unlikely to return to employment can help cover medical expenses, rehabilitation costs, mortgage repayments, and everyday living expenses.
What's included in these covers?
Before you decide, please read the PDS issued by NobleOak on the Policy documents page.
RAC Insurance member support
Support for family violence, financial hardship, accessibility and specialist services.
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 Insurance Pty Ltd receives a commission from NobleOak for RAC My Protection Plan Life Insurance policies.
† NobleOak Awards please see here.
^ Two (or more) covers – Two months free.
This offer is available for applications received from 16 Feb 2026 until 31 March 2026 and cover is issued. If you apply for and are issued with two or more covers, you will not start paying premiums for each cover respectively, until two months after the commencement date of the relevant covers. If you apply for two or more cover types and are issued with only one type of cover, or if you apply for and take out two or more covers but cancel any cover(s) within the first month so that only one cover remains current, you will not start paying premiums on the remaining cover until one month after the commencement date of that cover. This option (to defer payment) is unavailable for annual premiums. For annual premium, your total premiums will be adjusted after deducting amounts for one or two months from the annual premium due date (as applicable), but the annual premium is payable immediately. The offer is available for new customers only and can only be used once. The offer can’t be used in conjunction with another advertised offer.
