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.
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.
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.
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 2025 Life Insurance award winners
Finder's data and insights experts created a rating algorithm to compare 12 life insurance policies in Australia across pricing and key features. Our 2025 winners are:
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
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 between 1 and 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.
RAC insurance is underwritten by NobleOak Life Limited. This information can be found in the Product Disclosure Statement (PDS) provided on the RAC website.
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.
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.
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.
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 622 Finder guides across topics including:
Find out what cover is on offer from Zurich Life Insurance and receive a secure quote for cover. Zurich offers a Life, Income, TPD, Trauma, and Child Cover with additional options to tailor cover further.
Compare Life Insurance and Income Protection policies from Real Insurance and get cover in place with no medical or blood tests.
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