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RAC Income Protection Insurance Review

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RAC Disability Income Insurance
Maximum % of income Covered
Maximum Monthly Benefit
Maximum Entry Age
Maximum Benefit Period
Age 65

Our verdict

A benefit period up to 65 and industry-leading cover limits makes RAC a strong contender when considering income protection.

Looking for a flexible income protection policy with maximum cover amounts? With RAC Disability Income Insurance, you can insure up to 70% of your pre-disability income for when you're unable to work due to a sickness or injury. Self-employed people can benefit even further with Business Expenses Insurance that will cover the fixed running costs of your business.

  • This product is issued by NobleOak, an award-winning insurer with over 140 years in the business.
  • Policies are fully underwritten reducing the chance of unforeseen delays or surprises.
  • RAC is based in WA but services all of Australia.
  • RACs minimum waiting period is 30 days which isn't quite as low as competitors such as AAMI, Insuranceline and Suncorp who all offer 14 days on some covers.

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income protection

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).

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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.

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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.

More features of RAC income protection

  • Cooling-off period. Once your cover has started and you've received your RAC welcome pack, you have 30 days to decide whether the cover suits your needs. You can cancel your cover during this cooling-off period and receive a full refund of any premiums you have paid.
  • Claims. To make a claim, you'll need to contact RAC as soon as practically possible and ideally within 14 days.
  • Changing your insurance. You can apply to increase or decrease your cover at any time in writing. Increased cover will require you to go through the full underwriting process including a new application.
  • Premium payments. Monthly premiums can be made by direct debit through your bank account or by VISA or MasterCard. Annual premiums can be paid by cheque or direct debit.
  • Tax deductible. The premiums you pay towards Disability Income Insurance or Business Expenses Insurance are generally tax-deductible.

What do I get with RACs rewards programs?

When you purchase any RAC Life Insurance policy, including income protection, you become a RAC member. A membership gives you access to discounts from over 100 partners at 500 locations including deals on entertainment, travel, groceries, shopping and dining.

Why compare life insurance with Finder?

  • You pay the same price as buying directly from the life insurer.

  • We're not owned by an insurer (unlike other comparison sites).

  • We've done 100+ hours of policy research to help you understand what you're comparing.

How do I lodge a claim?

To make a claim on your RAC income protection policy, you can:

  • Call 1300 551 044 or email
  • RAC will send you a claim form
  • Once completed, you can email the form and any supporting documents back to RAC for assessment

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