Who is RAC insurance underwritten by?

RAC insurance is underwritten by NobleOak Life Limited. This information can be found in the Product Disclosure Statement (PDS) provided on the RAC website.

Is Total permanent disability offered by RAC?

Yes, RAC Life Insurance provides a Total and Permanent Disability (TPD) Benefit. The benefit is payable if the insured person suffers a Total and Permanent Disability as defined in the policy and satisfies the policy conditions. The TPD benefit amount is determined by the level of cover chosen by the insured person at the time of application and subject to any policy limits, terms and conditions.

How does interim accidental death cover work with RAC?

RAC offers Interim Accidental Death Cover which provides cover for accidental death only, for up to 90 days while the insurer assesses the application. This cover is provided at no extra cost to the applicant during the application process. It is important to note that this cover will only apply if the cause of death is a result of an accident, and it will not cover death due to natural causes or illnesses.

Does RAC offer any family-friendly policy features?

RAC doesn't offer a child cover option, a lump sum benefit is paid if a child dies or is diagnosed with a specified illness. However, you can opt for a future increase benefit – that increases your cover amount by up to 20% – if you or your partner gives birth or you adopt a child.

Will my policy expire – if so, at what age?

Yes, RAC's MyProtectionPlan policy expires at age 99. Expiry ages range from 65 to 99 years old, depending on the policy you select. Once the policy expires, the life cover and any optional benefits will end, and no further premiums will be payable.

RAC life insurance review

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Maximum cover of $25 million is available underwritten by the established insurer NobleOak.
Premiums were often higher for 40-50 year olds based on a 2023 analysis.
Access RAC member benefits and their offer of two months free on multiple covers.

Cover of up to $25,000,000 is available, which is one of the highest benefit limits you're likely to find.
Policies are issued by NobleOak, one of Australia's most popular and longest standing insurers.
You could access RAC member benefits.

Its premiums were higher than average for 40- and 50-year olds, according to our 2023 analysis of 10 providers.
You can't get cover if you're over 74.

Maximum Cover

$25,000,000

Maximum Age

Total & Permanent Disability Cover

Trauma Cover

Finder Score	Maximum Cover	Funeral Benefit	Optional TPD Cover	Optional Trauma Cover
Finder score 9 Excellent RACWA Life Insurance	Finder score 9 Excellent	Maximum Cover $25 million	Funeral Benefit $30,000	Optional TPD Cover $5 million (maximum cover)	Optional Trauma Cover Yes	Our verdict: RAC’s maximum death cover limit of $25 million is one of the highest limits you’ll find, including $5 million in TPD insurance. You can get an online quote, but you’ll need to call RAC to get trauma cover. Benefit from added peace of mind with fully underwritten insurance. RAC is also WA-based but services all of Australia.	View details Compare product selectionCompare	loading
Finder score Not scored yet RACWA TPD Insurance	Finder score Not scored yet	Maximum Cover $5 million	Funeral Benefit $0	Optional TPD Cover $5 million (maximum cover)	Optional Trauma Cover Yes	When you purchase RAC TPD 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.	View details Compare product selectionCompare	loading
Finder score Not scored yet RACWA Trauma Insurance	Finder score Not scored yet	Maximum Cover $2 million	Funeral Benefit $5,000	Optional TPD Cover	Optional Trauma Cover Yes	View details Compare product selectionCompare	loading

Why compare insurance with Finder?

You pay the same price as buying directly from the 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.

Read a more detailed review on:

RAC life insurance
Optional cover
Applying for cover

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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 $30,000 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.

life insurance icon

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 74 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.

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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 $30,000 to your beneficiaries in advance so you can pay for things like the funeral.

See how RAC's claim acceptance rate stacks up against other life insurers

This is the percentage of claims a life insurer pays out. It's based on data from Australian Prudential Regulation Authority (APRA) covering the 12-month period from 1 July 2021 to 30 June 2022. Taken from 18 Australian life insurance underwriters (of direct policies).

Claims acceptance rate

Claims acceptance rate
Brand	Claims accepted rate
OnePath	98.0%
Zurich	98.0%
RAC	96.9%
Budget Direct	96.9%
Nobleoak	96.9%
AAMI	90.1%
Insuranceline	90.1%
Suncorp	90.1%
TAL	90.1%
Australian Seniors	88.9%
Guardian	88.9%
Kogan	88.9%
Real	88.9%
ahm	86.4%
Medibank	86.4%

Claims acceptance rate
Brand	Claims accepted rate
OnePath	98.0%
Zurich	98.0%
RAC	96.9%
Budget Direct	96.9%
Nobleoak	96.9%
AAMI	90.1%
Insuranceline	90.1%
Suncorp	90.1%
TAL	90.1%
Australian Seniors	88.9%
Guardian	88.9%
Kogan	88.9%
Real	88.9%
ahm	86.4%
Medibank	86.4%

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 . 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

Finder Score - Life Insurance

Life Insurance is a little complicated and a lot overwhelming. That's why we made the Finder Score, to make it easier to compare Life Insurance products against each other. Our experts analysed over 30 products and gave each one a score out of 10.

But a higher score doesn't always mean a product is better for you. Your situation is unique, so your policy choice will be too. Don't think of Finder Score as the final word, but as a good place to start your life insurance comparison.

Read the full methodology

Frequently asked questions

Yes, RAC Life Insurance provides a Total and Permanent Disability (TPD) Benefit. The benefit is payable if the insured person suffers a Total and Permanent Disability as defined in the policy and satisfies the policy conditions. The TPD benefit amount is determined by the level of cover chosen by the insured person at the time of application and subject to any policy limits, terms and conditions.
RAC offers Interim Accidental Death Cover which provides cover for accidental death only, for up to 90 days while the insurer assesses the application. This cover is provided at no extra cost to the applicant during the application process. It is important to note that this cover will only apply if the cause of death is a result of an accident, and it will not cover death due to natural causes or illnesses.

Important note. These FAQs were generated by ChatGPT. A real-life human at Finder – James Martin, editor for insurance – reviewed the responses before publication.

Compare other products from RAC

Finder writers are subject matter experts and use primary sources, in-depth research and interviews with other experts to ensure you're getting accurate, up-to-date information. Articles are fact checked in line with our editorial guidelines.

Thank you for your feedback!

Written by

Gary Ross Hunter

Journalist

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Gary Ross Hunter has over 6 years of expertise writing about insurance, including life, health, home, and car insurance. Having reviewed hundreds of product disclosure statements and published over 800 articles, he loves simplifying complex insurance topics for everyday readers. Gary has contributed to major outlets like Yahoo Finance, The Sydney Morning Herald, and news.com.au, and holds a Bachelor of Arts (Honours) in English Literature from the University of Glasgow, along with a Tier 2 General Advice certification, ensuring his work adheres to ASIC’s RG146 standards. See full bio

Gary Ross's expertise

Gary Ross has written 519 Finder guides across topics including:

Health, home, life, car, pet and travel insurance
Managing the cost of living

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RAC Life Insurance Review

A fully-underwritten policy and a competitive funeral benefit of $30,000 are a couple of reasons you might consider RAC life insurance. It's also based in WA but services all of Australia.

Key takeaways