RAC Income Protection Insurance Review

RAC Disability Income Insurance

Key points of RAC Disability Income Insurance

RAC's Disability Income Insurance Insurance is designed to help replace your lost income if you're unable to work due to serious sickness or injury. It offers the following benefits:

• Total Disability. You'll receive an ongoing monthly benefit to replace up to a maximum of 70% (or $30,000) of your pre-disability earnings following your chosen waiting period. The amount you can insure is based on a sliding scale and reduces after 2 years on a claim.
• Partial disability. A reduced benefit is available if you are sick or injured but can return to work in a reduced capacity.
• Waiver of premium. RAC will waive any premiums that are payable whilst you are eligible for claim payments.
• Premium pause. Once your cover has been in place for at least 2 years, you can request to suspend your cover if you need to take extended leave or become unemployed.
• Superannuation benefit. You can also insure up to 10% of your sum insured as a superannuation contribution. This will be paid to your super fund while you ​​are receiving a monthly benefit for disability.
• Recurring disablement. If you return to work for less than 6 months after you've been paid for either total disablement or partial disablement and suffer a recurrence, RAC will treat the claim as a continuation of the original claim and a waiting period won't apply.
• Recovery at work. While receiving benefit payments, you may also be eligible for costs to support your recovery at work. This includes special equipment to assist you in re-entering the workforce, the costs of modifications to your workplace and support programs.
• Vocational transition program. When receiving monthly payments, you may be eligible for vocational re-training costs to help your transition to an occupation for which you are likely to have work capacity. This can be helpful when you are unlikely to return to your regular occupation.
• Rehabilitation program expenses. While receiving benefit payments, you may also be covered for the expense of participating in a rehabilitation program recommended by your doctor.

Note: Be sure to review the full terms and conditions for each benefit in the Product Disclosure Statement (PDS).

Business Expenses Insurance

Key points of Business Expenses Insurance

RACs Business Expenses Insurance is designed to meet the needs of self-employed people who are seeking to cover the fixed running costs of their business.
If you can't work due to sickness or injury, your RAC insurance will kick in and provide you with the following benefits:

• Total disablement. If you become totally disabled, you will receive a monthly benefit to go toward your share of ongoing business expenses less any business expenses claim offsets.
• Partial disablement. You may also be paid a reduced monthly benefit if you return to work in a reduced capacity.
• Waiver of premium. RAC will waive any premiums payable while you are receiving a claim payment.

How to apply

Applying for cover

Key points to consider when applying for income protection with RAC:

• Disability Income Insurance: You need to be 18 - 55 years old.
• Business Expenses Insurance: You need to be 21 - 59 years old.
• Applications generally take 15 to 30 minutes to complete either online or over the phone.
• You'll need to answer basic questions about your health and lifestyle in a fairly straightforward application process.
• Receive Interim Accidental Disability Cover while your application is under assessment.
• A dedicated life insurance team can assist with any questions you might have.