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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:

  • Cover of up to $25,000,000 is available, meaning RAC offers one of the highest limits you’re likely to find.
  • Policies are issued by NobleOak, one of Australia's most popular and longest standing insurers.
  • RAC life insurance policies have a maximum entry age of 69, which is competitive but Australian Seniors (79) and Medibank (70) go a little higher.

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 Insurance (Only available in Western Australia)
Maximum Cover $25,000,000
Terminal Illness Benefit$25,000,000
Funeral Benefit $15,000
Guaranteed Renewability
Cooling-off (days)30
Online Quote

Get quote for RAC Life insurance

Name Product Maximum Cover Maximum Entry Age Terminal Illness Benefit Average Claims Acceptance Rate Average Claim Time Sum Insured
RAC Life Insurance (Only available in Western Australia)
1.1 months
$20,230 million
When you purchase RAC Life Insurance, WA residents receive complimentary RAC membership which includes access to discounts on fuel, savings on shopping, entertainment and more. T&Cs at rac.com.au.

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Life Insurance

Key points of RAC Life Insurance

  • Death and terminal illness benefit: You can apply for cover up to $25 million.
  • Funeral expenses advance: Up to $15,000 paid in advance towards your funeral.
  • Death benefit advance: If you become terminally ill, you can receive the full payout.
  • Financial advice benefit: This is available up to $5,000

Note: Be sure to check the Product Disclosure Statement (PDS) for terms and conditions.

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Optional cover

Key points of RAC optional cover

When you take out a Life insurance policy, you also have the option to add on the following:

  • Total and permanent disability cover: This pays you a lump sum of up to $5,000,000 if you become permanently disabled and are unable to work anymore. You need to be between 16 and 59 to apply and the expiry age is 75.
  • Trauma cover: If you are diagnosed with an illness like cancer, have a heart attack or a stroke, you can get up to $2,000,000 to cover medical bills and more. You need to be between 18 and 59 to apply and the expiry age is 70.

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Applying for cover

Applying for RAC cover

To apply for cover you must be:

  • An Australian resident at the time of application.
  • Between 16 and 69 to apply for life insurance (cover expires at age 99).
  • Able to tolerate changes in premiums over time, including increases.
  • Earning income, have personal savings, a super account or some other financial capacity to pay premiums.

Still wondering if RAC is right for you? Here are the main pros and cons summarised:


  • No medical tests.
  • Access to RAC member benefits.
  • It comes with one of the highest benefit limits on the market.


  • It's only available for WA residents.
  • You can't get cover if you're over 69.

Other key features offered by RAC Life Insurance

RAC Life Insurance comes with the following features and benefits:

  • Comprehensive cover from up to $25,000,000.
  • RAC membership. Members get access to lots of benefits including discounts on retail, RAC services and other insurance products.
  • Optional extras. A life insurance policy also comes with the option of add-ons for total and permanent disability (TPD), and trauma.
  • 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.

What are some of the key exclusions?

Some of the key exclusions with RAC include:

  • Generally 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.
  • 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 do I get with RAC's rewards programs?

RAC rewards its customers with benefits including 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 1300 342 194. 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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