RAC Life Insurance Review

Our verdict

• 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 Finder Awards analysis of 10 providers.
• You can't get cover if you're over 74.

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Maximum Cover

$25,000,000

Maximum Age

74

Total & Permanent Disability Cover

Trauma Cover

2023 Finder Awards

Highly commended: Best Life Insurance

RAC Life Insurance

RAC life insurance is underwritten by NobleOak. This means it offers similar cover levels, with high benefit limits (RAC goes up to $25 million) and quality policy add-ons.

Check out the winners

Compare key features of RAC life insurance and get a quote today

Name	Product	Maximum Cover	Maximum Entry Age	Terminal Illness Benefit	Claims Acceptance Rate	Average Claim Time	Sum Insured
RAC Life Insurance Bonus		$25,000,000	74	$25,000,000	96.90%	1.1 months	$24,483 million	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.	Get Quote View details	Compare	loading Fetching your data...

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Read a more detailed review on:

Compare RAC with the other 2023 Life Insurance award winners

Finder's data and insights experts created a rating algorithm to compare 10 life insurance policies in Australia across pricing and key features. Our 2023 winners are:

RAC Life Insurance

3rd place in Finder Awards

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Maximum Cover

$25,000,000

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TPD Cover

Yes

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Trauma Cover

Yes

NobleOak Life Insurance

1st place in Finder Awards

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Maximum Cover

$25,000,000

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TPD Cover

Yes

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Trauma Cover

Yes

TAL Accelerated Protection Life Insurance

2nd place in Finder Awards

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Maximum Cover

No set limit

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TPD Cover

Yes

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Trauma Cover

Yes

Full methodology on how we chose the winners

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.

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).

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

Why you can trust Finder's life insurance experts

We're free

You pay the same as buying directly from the life insurer. Better still, we regularly run exclusive deals that you won't find on any other site – plus, our tables make it easy to compare policies.

We're experts

Our team of life insurance experts have researched and rated dozens of policies as part of our Finder Awards and published 250+ guides to make it easier for you to compare.

We're independent

Unlike other comparison sites, we're not owned by an insurer. That means our opinions are our own and we work with lots of life insurance brands, making it easier for you to find a good deal.

We're here to help

Since 2016, we've helped 270,000+ people find life insurance by explaining your cover options, simply and clearly. We'll never ask for your number or email. We're here to help you make a decision.

Compare other leading life insurance brands

Name	Product	Maximum Cover	Maximum Entry Age	Terminal Illness Benefit	Claims Acceptance Rate	Average Claim Time	Sum Insured
NobleOak Life Insurance Finder Award		$25,000,000	74	$25,000,000	96.90%	1.1 months	$24,483 million	Our verdict: Finder Life Insurance Award winner for the last 5 years in a row. Good value for money, simple application process and a high claims acceptance rate. ⭐ Current offer: Get one month free for a limited time - apply by 21 December 2023. Offer T&Cs on insurer website apply.	Get Quote View details	Compare	loading Fetching your data...
TAL Accelerated Protection Life Insurance Finder AwardBonus		No set limit	73	Not stated	Data not available	1 months	$249,285 million	Our verdict: One of Australia's leading life insurers. Automatically includes child critical illness cover. Plus, it comes with a level premium option (e.g. costs remain similar as you get older). ⭐ Current offer: Get up to 15% off your TAL Life, Trauma or TPD insurance policy for life - if you have a Body Mass Index (BMI) between 19 and 28 at the time of your application. Offer T&Cs on insurer website apply.	Get Quote View details	Compare	loading Fetching your data...
Medibank Life Insurance		$2,500,000	70	$2,500,000	Data not available	Data not available	Data not available	Our verdict: Medibank offers a higher payout limit ($2.5 million) than 15 other providers. Get a 10% discount if you're already a Medibank Health Insurance member.	Get Quote View details	Compare	loading Fetching your data...
ahm Life Insurance		$1,500,000	55	$1,500,000	Data not available	Data not available	Data not available	Our verdict: ahm offers a simple application process. You can be approved online or over the phone. There are no medical or blood tests required.	Get Quote View details	Compare	loading Fetching your data...
HCF Life Protect Insurance		$1,500,000	65	$1,500,000	Data not available	Data not available	Data not available	Our verdict: Similar cover to other insurers ($1.5 million). A good discount for HCF members of 10% and an easy initial quote process. ⭐ Current offer: Eligible HCF Members receive 10% premium discount and HCF Thank You rewards.	View details	Compare	loading Fetching your data...
RAC Life Insurance Bonus		$25,000,000	74	$25,000,000	96.90%	1.1 months	$24,483 million	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.	Get Quote View details	Compare	loading Fetching your data...
Real Family Life Cover Bonus		$1,000,000	64	$1,000,000	88.90%	2.4 months	$53,238 million	Our verdict: The application is simple; it can be done with 1 phone call and there are no medical exams. But households with larger debts may need more than a $1 million payout. ⭐ Current offer: Get back 10% of the premiums you’ve paid after 1 year.	Get Quote View details	Compare	loading Fetching your data...

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Frequently asked questions

• 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.

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