RAC life insurance review

A fully-underwritten policy and a competitive funeral benefit of $15,000 are a couple of reasons you might consider RAC life insurance.

Our Verdict:

  • Buy online and you can save 10% on your policy. There’s also a 5% joint policy discount that you and your partner can take advantage of.
  • Cover of up to $1,000,000 is available. However, 14 of the 19 brands we compare on our site do offer a higher limit.
  • RAC life insurance policies have an expiry age of just 75. To put this in context, AAMI and Insuranceline both go as high as 99 years of age.

Review by our life insurance senior writer James Martin

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Maximum Cover


Maximum Entry Age


Terminal Illness Benefit

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Product NameRAC Life Protect
Maximum Cover $1,000,000
Terminal Illness Benefit$1,000,000
Funeral Benefit $15,000
Guaranteed Renewability
Cooling-off (days)30
Online Quote

RAC is a comparatively small player in the life insurance market – they aren't one of the 19 brands whose policy claim data can be found on Moneysmart, the government's consumer site. That said, the Western Australia-based RAC is a long-established road service and insurance name. With an RAC life insurance policy, you can get up to $1,000,000 worth of cover, plus add ons like TPD, trauma and child trauma cover. And by becoming an RAC member you can unlock further discounts on groceries, retail, entertainment and other RAC products.

Summary of RAC Life Insurance

Maximum cover amount$1,000,000
Age of entry18-65
Types of cover offered
  • Life cover
  • Additional cover options
  • Total and permanent disability (TPD)
  • Trauma cover
  • Children's trauma cover
How do I apply?Online with a 10% discount

Pros and Cons

10% discount for life when you buy onlineCover is capped at $1,000,000 and reduces if you apply after you are 45
It comes with a joint policy discount of 5%It's only available for WA residents
Access to AIA Vitality and RAC member benefits
No medical tests

About RAC

RAC is a member organisation based in WA that has been around for more than 115 years. They offer travel services, finance, driver training and insurance, including income protection and life cover. When you sign up to RAC, you also become an RAC member which gives you access to lots of benefits, from money off insurance products to movie tickets.

Compare direct life insurance policies below

Name Product Maximum Cover Maximum Entry Age Fully Underwritten? Terminal Illness Benefit Optional Extras
NobleOak Life Insurance
TPD cover, Trauma cover
Get your one month free when you buy NobleOak Life Insurance policy. Offer ends 30 September 2021. T&C's apply.
Medibank Life Insurance
TPD cover, Trauma cover
Medibank health members save 10% on premiums every year. T&Cs apply.
Real Family Life Cover
TPD cover, Trauma cover
Get a refund of 10% of the premiums you've paid (in the first 12 months) with The Real Reward™ .

Compare up to 4 providers

What are the key features offered by RAC Life Protect?

RAC Life Protect comes with the following features and benefits:

  • Comprehensive cover from $100,000 to $1,000,000.
  • Access to AIA Vitality. AIA Vitality is a health and wellness program that rewards you for living a healthy lifestyle.
  • RAC membership. Members get access to lots of benefits including discounts on retail, RAC services and other insurance products.
  • Online discount. RAC will take 10% off your policy when you buy it online.
  • Optional extras. A life insurance policy also comes with the option of add-ons for total and permanent disability (TPD), trauma and children's trauma (financial support if your child becomes critically unwell).
  • Terminal illness benefit. If you're diagnosed with a terminal illness, RAC will pay your full life benefit to you.
  • Final expenses benefit. When you die, RAC will pay $15,000 to your beneficiaries in advance so you can pay for things like the funeral.
  • Bonus cover. Each year you maintain your policy, RAC will provide an extra 1% on your level of cover, up to a maximum of 10%.

What are some of the key exclusions?

Some of the key exclusions with RAC include:

  • No cover for suicide or a deliberately self-inflicted injury or sickness in the first 13 months.
  • No cover for engaging in any criminal activity or any unlawful act.
  • No cover for any aerial activity, except as a fare paying passenger.
  • No cover for the direct or indirect effects of alcohol or drugs
  • No cover for participating in any motorised sport.
  • No cover for a child's trauma event due to a congenital condition.
  • No cover for a child's trauma event arising from a condition that first occurred before you purchased a policy.
  • If the death, injury or sickness is a direct or indirect result of carrying out your job duties if your job involves
    • working at heights above 10 metres
    • working underground
    • working offshore
    • underwater diving
    • working with explosives
    • working as a professional sports person or coach
    • employment in the armed forces

What types of policies are offered by RAC?

RAC offers one life insurance policy but you can add-on the following options to your coverage.

  • Total and permanent disability cover. This pays you a lump sum of up to $750,000 if you become permanently disabled and are unable to work anymore. You need to be between 18 and 59 to apply and the expiry age is 65.
  • Trauma cover. If you are diagnosed with an illness like cancer, have a heart attack or a stroke, you can get up to $250,000 to cover medical bills and more. You need to be between 18 and 59 to apply and the expiry age is 65.
  • Children's trauma cover. RAC is one of the few providers to offer this cover. They will pay you up to $50,000 if your child suffers a serious illness. For more information on what is listed as a trauma event, read their PDS.

What do I get with RAC's rewards programs?

RAC rewards its customers with a number of benefits. These include:

  • Access to AIA Vitality. AIA Vitality is a rewards program that gives you discounts for living a healthy lifestyle. With an RAC policy, you'll get up to 50% off eligible gym memberships, 25% off eligible fitness devices and up to $500 in vouchers a year from Myer, Rebel, Ticketmaster, Woolworths and DYMOCKS.
  • RAC membership. You'll automatically become an RAC member when you buy a policy. A membership gives you access to discounts on travel, groceries, entertainment, fuel, dining and other RAC products.

How do I lodge a claim?

If you or your beneficiaries need to make a claim on your RAC life insurance policy, you'll need to get in touch with RAC as soon as possible on 1800 069 922. This is so that they can send you a claim form. The claims form should be filled out and returned to the insurer along with medical certificates and any other documents they've asked for. You can mail this to:

Claims Team,
RAC Life Insurance Member Service
PO BOX 5595
St Georges Terrace, Perth WA 6031

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