Finder makes money from featured partners, but editorial opinions are our own.

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. It's also based in WA but services all of Australia.

No reviews yet. Write a 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.

Maximum Cover

$25,000,000

Maximum Age

74

Total & Permanent Disability Cover

Trauma Cover

Finder Award Finalist

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.

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
RACWA Life Insurance
$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. RAC is also WA-based but services all of Australia.
loading

Get the latest deal from RAC Life Insurance

Deal

Get 1 month free

Expires 30 Jun 2024
Get your one month free when you buy RAC Life Insurance policy. T&C's apply.

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.

Read a more detailed review on:

life insurance shield

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.

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.

coverage icon

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.

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:

RACWA Life Insurance logo

RACWA Life Insurance

3rd place in Finder Awards

Get Quote


Maximum Cover

$25,000,000


TPD Cover

Yes


Trauma Cover

Yes

TAL Accelerated Protection Life Insurance logo

TAL Accelerated Protection Life Insurance

2nd place in Finder Awards

Get Quote


Maximum Cover

No set limit


TPD Cover

Yes


Trauma Cover

Yes

Medibank Life Insurance logo

Medibank Life Insurance

Get Quote


Maximum Cover

$2,500,000


TPD Cover

Yes


Trauma Cover

Yes

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

free

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.
expert advice

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.
independent

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.
help

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 AwardBonus
NobleOak Life Insurance
$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 two months free on all cover types apply by 14 June 2024. T&Cs apply.
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.

⭐ Current offer: Save 10% on your first year of Medibank Life Insurance when you apply by 1 July 2024. T&Cs apply.
TAL Accelerated Protection Life Insurance
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.
RACWA Life Insurance
$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. RAC is also WA-based but services all of Australia.
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 needed.

⭐ Current offer: Get 10% off your first year of ahm Life Insurance when you apply by 1 July 2024. T&Cs apply.
AAMI Life Insurance
$1,500,000
65
$1,500,000
Data not available
3.1 months
$37,768 million
Our verdict: There’s flexibility with AAMI as you can add another adult to your cover, with a competitive limit of $1.5 million. Easy application process with no medical exams.

⭐ Current offer: Take out a new AAMI Life Insurance policy and get $100 eGift card after your first 4 months of cover. T&Cs apply. Ends June 30, 2024.
Suncorp Life Insurance
$1,500,000
65
$1,500,000
Data not available
3.1 months
$37,768 million
Our verdict: Competitive maximum cover limit of $1.5 million. Suncorp lets you change your cover amount by up to $100,000 after a big life event, such as having a baby.

⭐ Current offer: Take out a new Suncorp Life Insurance policy and get $100 eGift card after your first 4 months of cover. T&Cs apply. Ends June 30, 2024.
Real Family Life Cover
$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.
loading

Frequently asked questions

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

More guides on Finder

Go to site