Income Protection cover (referenced as Disability Income cover within the PDS) provides a monthly payment in case you can’t work due to sickness or injury, helping you to support your family and cover essential living expenses.

If you are aged between 18 and 55 years and work at least 20 hours per week you may be eligible to apply for Income Protection. Income Protection will replace a share if your income if you can’t work due to sickness or injury. 

You will be eligible to apply initially for up to 70% of your pre disability income. 

When you apply you will be asked to select a 30 or 90 day waiting period, and a benefit period of either 2 years, 5 years, or to age 65.

Depending on the cover type(s) you choose, and if you meet the conditions of cover, you would be eligible to claim if you were to pass away (life cover), could not work again due to a sickness or injury (TPD cover which provides a lump sum payment), were unable to work due to sickness or injury (income protection cover which provided a monthly payment for your chosen benefit period, whilst you are unable to work) or were diagnosed with a serious medical condition listed in the PDS (trauma cover).

You can choose:

• Life (death) cover
• Income protection cover (known as disability income insurance)
• Total Permanent Disability (TPD) cover
• Trauma cover

RAC Life Insurance is a fully-underwritten life insurance product. That means the insurer asks you about your health and lifestyle at the start, not when you make a claim. As long as you correctly disclose the information requested when you apply, you can be confident that a future claim will be paid as outlined in the Product Disclosure Statement.

NobleOak Life Limited (NobleOak), Australia’s most awarded direct life insurer of 2021 (link to FAQ below), is the issuer of RAC Life Insurance. They are an Australian life insurer that was established in 1877 and have been protecting Australians for over 140 years. 

NobleOak is regulated by the Australian Prudential Regulation Authority (APRA), and holds an Australian Financial Services License issued by the Australian Securities and Investments Commission (ASIC).

RAC Life Insurance is reinsured through an arrangement NobleOak has with Hannover Life Re of Australasia Ltd.

NobleOak is also a member of the Financial Services Council of Australia (FSC) and a signatory to the FSC Code of Practice for Life Insurers.

Determining the level of cover you need for the cover type(s) you select depends on your personal circumstances and financial position.

You may wish to consider the stage of life you are in, your level of debt, and other ongoing financial commitments, before taking out cover.

The premium you pay depends on your circumstances, including but not limited to:

• The amount of cover and the type of insurance benefits selected
• Your age – premiums generally increase with age as the likelihood of a claim increases
• Your gender
• Your occupation
• Whether or not you smoke / vape tobacco – premiums are higher for smokers
• The options and selections you make when taking out your cover, including the chosen Waiting Period and Benefit Period for Disability Income Insurance – premiums are higher for shorter Waiting Periods and longer Benefit Periods
• The frequency of premium payments you choose (monthly or annual payments are available)
• When your cover started
• Your state of health, family medical history, lifestyle, leisure activities, and other relevant factors considered during the assessment of your application (premium loadings may apply).

Cover amounts, except in the case of Business Expenses Insurance and Disability Income Insurance, will be automatically increased at each anniversary based on the previous year’s increase in the Consumer Price Index or 3%, whichever is the greater. Indexation increases stop at age 99 for Life Insurance, age 65 for TPD Insurance, and age 60 for Trauma Insurance. Your premium will automatically adjust to reflect the increase in cover. You may cancel these automatic increases by contacting us.

Your cover will start once it is accepted by the RAC Life Insurance team and communicated to you in writing. Until then, we may ask for more information to fully assess your application. Your duty to disclose any relevant information continues right up the point we accept your application.

When your insurance cover begins, you will be issued with an acceptance letter outlining the full details of your insurance. Please keep your letter together with the PDS for future reference.

You will also receive an annual advice confirming your insurance details, including your insured benefits and premium payable.

Interim Accidental Cover is provided to you while your application is under assessment;

• For Life cover applicants – up to $1.5 million
• For TPD cover applicants – up to $500,000
• For Trauma cover applicants – up to $500,000 
• For Disability Income cover applicants – we will pay the monthly cover amount applied for up to 24 months to a maximum of $2,000 per month

Subject to the eligibility and terms referenced in the PDS, these benefits are provided at no extra cost to you.  

Making a claim can be a difficult and emotional time. We aim to make the process as straightforward as possible.

Visit our our claims page for instructions to claim with either AIA or NobleOak.

New RAC Life Insurance policies are no longer available through our former arrangement with AIA Australia.

If you hold an existing RAC Life Insurance policy issued through AIA Australia there’s no change to your cover. If you would like to contact a service or claim representative, please see the details below.

Service queries

Opening times

Monday to Friday 9am to 5pm

Phone

1800 069 922

Email

au.servicelifeinsurance@aia.com

Claims queries

Opening times

Monday to Friday 9am to 5pm

Phone

1800 069 922

Email

au.claimslifeinsurance@aia.com

RAC Life insurance, TPD insurance, and Income protection insurance issued by NobleOak, can all be included in an SMSF. Please note though that where cover is taken through an SMSF (that is, the trustee of the SMSF will own the cover) there are certain limitations because of the Superannuation Industry Supervision Act 1993 (SIS) requirements. These apply to cover owned by a superannuation trustee of an SMSF and, where applicable, they are mentioned in the PDS.

RAC Life Insurance offers high levels of cover. You can apply for up to $25 million cover of Life Cover and up to $5 million of Total and Permanent Disability (TPD) cover, without having to go through a financial adviser.

Please call us on 1300 342 194 to arrange cover.

There are a number of potential benefits to holding life insurance in an SMSF, including increased personal cash flow and the effective tax deductibility of the insurance premiums to the Trustee of the superfund. Because superannuation is a complex area which changes from time to time, we suggest you obtain tax or accounting advice when considering your taxation affairs.

Because your insurance premiums are paid for by your SMSF, you no longer have to come up with the additional money from some other source. This can be useful for anyone who needs to maintain their after-tax cash flow, but still understands the importance of personal risk insurance. Premiums are paid from the fund instead of out of your own pocket.

Your SMSF may also be able to claim a tax deduction on the premiums.

In addition, you have the flexibility to move your insurance out of your SMSF without cancelling your plan should you decide to do so (and assuming the SMSF trustee permits this). This could be beneficial if your health deteriorates, your SMSF members’ requirements changes, or you no longer want to pay premiums out of your SMSF funds.

RAC Life Insurance is underwritten by NobleOak. Under NobleOak’s current underwriting guidelines, Individual Disability Income Insurance (Income Protection) is unable to be offered to people working in certain roles which are deemed as high risk. As an industry standard, typically the underwriting guidelines for Individual Disability Income Insurance are much more stringent compared to those for Death cover. For example, some specific mining occupations and ‘fly in - fly out’ (FIFO) workers are deemed high risk due to a number of factors including the additional accident risk.

Also, keep in mind that as with all income protection products, other eligibility criteria will apply. For RAC Life Insurance Income Protection cover, you have to be an Australian resident between the ages of 18 and 55 to take out cover, and be working at least 20 hours per week.

Please note that the issue of cover is subject to underwriting and confirmation of acceptance by NobleOak of your application. Your age, occupation, pastimes, gender, sum insured, smoker status and health are elements which will factor into the actual premium amount (including any applicable premium loading) charged by NobleOak.

Please call us on 1300 342 194 if you have questions.