RBC Insurance Life Insurance Review
Learn more about RBC Insurance in Canada. Talk to one of our experienced advisors, today!
7 Minute read
Originally published: July 6, 2021
Updated: August 10, 2023
RBC Insurance Life Insurance Review.
Learn more about RBC Insurance in Canada. Talk to one of our experienced advisors, today!
7 Minute read
Originally published: July 6, 2021
Updated: August 10, 2023
RBC Insurance is the insurance arm of one of Canada’s largest banks, and one of the best insurance companies in Canada. RBC Insurance provides extremely competitive term rates of various lengths to Canadians. Underwriting and claims services are both traditionally fast and efficient, although their well known annual 10% premium discount can significantly impact turnaround times for new applications. With a financial strength rating of A+ from AM Best Company, they’re reliable and financially stable with an affordable and flexible selection of term life insurance products, which leads us to our rating of 4 stars.
We’ve given RBC Insurance a 4 star rating as it lacks a robust permanent life insurance lineup, with only existing term policies having the ability to convert to lifelong coverage. Despite this, for those looking for simple coverage to meet their life insurance needs, RBC Insurance is a solid choice to provide a cost effective solution. Their primary offering is a personalized selection of terms (ranging from 10 to 40 years) for you to choose from, providing coverage of up to $25,000,000, tailored precisely to match your specific financial requirements. In this blog we will be covering the various products that RBC offers, such as RBC term life insurance, RBC permanent life insurance, RBC guaranteed life insurance, RBC insurance reviews and the pros and cons of RBC insurance.
In this article:
Company Overview
RBC was founded in 1864, with its insurance arm launching in the 1960s. RBC is one of the largest Canadian bank-owned insurance organizations, and has approximately 2,500 employees who serve more than four million clients, and has $15.1 billion in assets. RBC Insurance is the insurance arm of the Royal Bank of Canada, offering a wide range of insurance products and services, such as life, health, auto, home and travel insurance. Notably, RBC Insurance is one of the only companies in Canada to have a simplified process for purchasing up to $500,000 of term life insurance.
RBC Life Insurance Pros
YourTerm insurance product allows applicants to pick any term length between year 10 and 40
- Ability to add a wide range of riders to most policies
- Highly affordable prices
- Maximum coverage of $25 Million
- Flexibility is provided through an array of term durations and coverage amounts
- Only 10 questions required to apply for coverage under $1,000,000
- The term life policy can be renewed throughout one’s lifetime, though renewal costs increase following the initial term
RBC Life Insurance Cons
- RBC uses commissioned insurance advisors, who may come off as pushy for their sales
- Only available to Canadian citizens, or permanent residents/landed immigrants for over 12 months – products are not available for those in Canada with temporary residency status such as with a student or work permit
RBC Life Insurance Products
RBC offers several different kinds of life insurance products, for their term life insurance products, they offer: RBC Simplified® Term Life Insurance and YourTerm Life Insurance. RBC permanent life insurance offers: Term100 Life Insurance, RBC Universal Life™, RBC Growth Insurance™, RBC Guaranteed Acceptance Life Insurance. The RBC Guaranteed Acceptance Life Insurance is their form of guaranteed/no medical insurance, find out if no medical insurance is right for you. Then they have some additional critical illness insurance and disability insurance products such as: Personal Accident Insurance, Critical Illness Recovery Plan™, Critical Illness Insurance Plan, and several disability insurance plan: RBC Simplified® Disability Insurance, The Professional Series®, The Foundation Series™.
RBC Insurance Term Life Insurance
RBC Insurance offers 2 term life insurance products, which may seem like few, but the customization available within each product makes up for it.
RBC Simplified® Term Life Insurance
This product offers flexible, convenient and affordable coverage that you can apply for online. Being a simplified policy, there is no medical exam required.
Key highlights:
- Coverage from $50,000 to $1,000,000 for a term anywhere in between 10-40 years
- Accidental Death Benefit included
- No medical exam required, with the application process being online take takes 15 minutes to complete
- Renewable, and convertible to RBC’s whole life or RBC Growth Insurance without medical evidence to age 71
YourTerm Life Insurance
YourTerm is RBC’s flagship product, with substantial coverage amounts starting at $1,000,001, flexible term options, and several optional add-ons. This product stands out as one of the only products in the Canadian term life insurance market that grants the freedom to select a coverage duration based on individual needs, rather than being constrained by predetermined terms.
Key highlights:
- Coverage from $1,000,001 to $25,000,000 for a term anywhere in between 10-40 years
- Renewable, and convertible to RBC’s whole life or RBC Growth Insurance without medical evidence to age 71
Optional benefits:
- Joint First-to-Die Option
- YourTerm Rider (a rider for another person, such as a spouse)
- Children’s Term Rider
- Accidental Death Benefit Rider
- Total Disability Waiver of Premium Benefit Rider
- Payor Death and Disability Waiver of Premium Benefit Rider
RBC Insurance Permanent Life Insurance
RBC Insurance offers 4 lifetime coverage products: Term 100, RBC Universal Life™, RBC Growth Insurance™ , and RBC Guaranteed Acceptance Life Insurance.
Term100 Life Insurance
This product is designed to provide lifetime coverage to protect your family and to pay capital gains tax on assets left to them.
Key highlights:
- Coverage from $50,000 to $25,000,000 for life
- Available to purchase at ages 18-85
- Level premiums until age 100
Optional benefits:
- Accidental death benefit: in case of death from accidental causes before age 85, your beneficiary will receive five times the Basic Coverage
- Joint First-to-Die Option (up to 2 family members)
- Joint Last-to-Die Option (up to 2 family members)
- Term 10 or 20 Rider
- Children’s Term Rider
- Accidental Death Benefit Rider
- Total Disability Waiver of Premium Benefit Rider
- Payor Death and Disability Waiver of Premium Benefit Rider:
RBC Universal Life™
RBC’s Universal Life product provides lifetime coverage and the ability to save for the future in a tax-advantaged policy, and also allows the policy holder to be involved with managing the policy’s underlying investments. The policy includes lifelong coverage, a variety of choices for allocating your cash value investments, and the option to decide between consistent protection or a rising death benefit.
Key highlights:
- Coverage of $25,000 to $25,000,000 for life
- Available to purchase at ages 0-85
- Death Benefit Options – Choose from a level protection* or increasing protection** death benefit option
- Choose how much to pay into your policy and how to pay your premiums
- Living Benefits of a compassionate advance in the case of a terminal illness diagnosis and a disability benefit to provide protection while you are alive
- Single or Joint Coverage
- Access to your accumulated cash value at any time
Optional benefits:
- Additional Term Insurance
- Children’s Term Rider
- Accidental Death Benefit Rider
- Total Disability Waiver of Deductions Benefit Rider
- Payor Death and Disability Waiver of Deductions Benefit Rider
*Level protection pays a death benefit equal to either your coverage amount or the amount accumulated in your policy, whichever is greater.
**Increasing protection pays a death benefit equal to your coverage amount plus your accumulation value.
The increasing death benefit is beneficial for individuals seeking a tax-advantaged strategy to access retirement funds once they have maximized their contributions to RRSPs and TFSAs.
RBC Growth Insurance™
RBC’s Growth Insurance™ product is a participating whole life product, designed to provide lifetime coverage with cash value guarantees and the potential to earn dividends to help protect your family and estate.
Key highlights:
- Coverage of $25,000 to $25,000,000 for life
- Available to purchase at ages 0-85
- Dividend Options – choose from four flexible options for receiving dividends (Paid-up Additions, Cash, Premium Reduction, or Dividends on Deposit)
- Juvenile Guaranteed Insurability Benefit – If you buy a policy for your child or grandchild, they can purchase additional insurance after their 18th birthday without giving additional evidence of insurability
- Access to your accumulated cash value at any time
- Single or joint coverage
- World-Class Asset Management with an RBC investment team
Optional Benefits:
- Additional Term Insurance
- Children’s Term Rider
- Guaranteed Insurability Benefit
- Accidental Death Benefit Rider
- Total Disability Waiver of Deductions Benefit Rider
- Payor Death and Disability Waiver of Deductions Benefit Rider
RBC Guaranteed Acceptance Life Insurance
RBC offers a guaranteed acceptance life insurance product, which involves no medical exam for those who have difficulty getting approved for regular permanent life insurance products. It’s designed for those ages 40-75 who are only looking for enough to leave for loved ones or help pay for final expenses.
Key highlights:
- Coverage from $5,000 to $40,000 in $5,000 increments, for life
- Application process available online and guaranteed coverage
- Accidental Death Benefit included
- No medical exam required
- Compassionate Advance
Other Life Insurance Products
RBC also offers critical illness insurance, disability insurance, and a unique product called Personal Accident Insurance that is often used to supplement another life insurance policy.
Personal Accident Insurance
RBC’s Personal Accident Insurance is often used to supplement existing life insurance policies, or for those who work in a high-risk occupation and do not qualify for other types of insurance. If you’re a Canadian resident aged 18-69 and already an RBC customer, you’re guaranteed acceptance for this product.
Key highlights:
- Coverage from $50,000 to $250,000 that can increase by 5% every two years due to inflation
- No medical exam required for applying
- Includes Accidental Death benefits, Air Travel Accident, Child Care Benefit, and Education Benefit
- Coverage is until age 80
Critical Illness Recovery Plan™
Protection for over 30 different illnesses – ideal for those who need a comfortable coverage amount, want to be covered for various illnesses, and those who are ages 18 to 65 years old.
- Benefit in Lump Sum: $25,000 to $2,000,000
- Coverage for more than 30 serious diseases and conditions makes it comprehensive
- Flexible: You can choose the premium and term options, as well as additional optional coverage for additional security.
- Benefit of Long-Term Care Conversion: Between the ages of 55 and 65, you may convert all or a portion of your insurance to long-term care insurance without demonstrating your ability to pay.
- It has level premiums to age 75 for the non-cancellable option, and level premiums to age 65 or 75 (guaranteed renewable)
- Assistance Programs: “The Healing Journey” Program, Medical Confidence™ Service, Teladoc Medical Experts, and Early Assistance Benefit
Who can apply?
- Ages 18-65
- Canadian citizens
- Landed immigrants and permanent residents who have lived in Canada for more than a year
- Those who have not had certain medical conditions identified or treated
Conditions covered
- Aortic Surgery
- Aplastic Anemia
- Bacterial Meningitis
- Benign Brain Tumour
- Blindness
- Cancer (Life Threatening)
- Coma
- Coronary Angioplasty
- Coronary Artery Bypass Surgery
- Deafness
- Dementia including Alzheimer’s Disease
- Early Breast Cancer
- Early Prostate Cancer
- Early Skin Cancer
- Early Stage Blood Cancer
- Early Stage Intestinal Cancer
- Early Thyroid Cancer
- Heart Attack
- Heart Valve Replacement or Repair
- Kidney Failure
- Loss of Independent Existence
- Loss of Limbs
- Loss of Speech
- Major Organ Failure on Waiting List
- Major Organ Transplant
- Motor Neuron Disease
- Multiple Sclerosis
- Occupational HIV Infection
- Paralysis
- Parkinson’s Disease and Specified Atypical Parkinsonian Disorders
- Severe Burns
- Stroke
Critical Illness Insurance Plan
Ideal for those who need a more affordable coverage amount, want to be covered for major illnesses, and for those who are ages 18 to 50 years old.
- Benefit in Lump Sum: $10,000, $25,000, $50,000 or $75,000
- Coverage for the 3 most common forms of illness: cancer, heart attack, stroke
- If you pass away while the policy is still in effect, the Return of Premium on Death Benefit reimburses all premiums you’ve already paid.
- Assistance Programs: “The Healing Journey” Program, Medical Confidence™ Service, Teladoc Medical Experts, and Early Assistance Benefit
Who can apply?
- Ages 18-50
- Canadian citizens
- Landed immigrants and permanent residents who have lived in Canada for more than a year
- Those who have not had certain medical conditions identified or treated
Conditions covered
- Stroke
- Heart Attack
- Cancer
RBC Simplified® Disability Insurance
This is ideal for:
- Those that are worried about meeting the requirements for conventional coverage
- Want to supplement group coverage or don’t have group coverage
- Are self-employed, a contractor, or a part-time employee
- Want coverage for injury only, or both sickness and injury
Features:
- Accessible: For injury-only coverage, premiums as low as $10.50 per month are available.
- Tax-Free Monthly Benefit: Choose between $500, $1,000, or $1,500 (up to 75% of your monthly gross income)
- No Medical Exam: To apply, just respond to a few straightforward questions. If you are not eligible for sickness coverage, you can receive injury-only coverage.
RBC Life Insurance Customer Reviews
Many RBC clients are satisfied with their experience with the company:
- RBC provides speedy and secure access to your claims and supplies regular updates about your policy’s status
- Clients enjoy the affordability and flexibility of their products
- RBC provides clarity and transparency: disclosure information is in big print and in places where it is easy to find, and has information readily available at all of its business locations, and on its website
However, some have found that:
- RBC representatives do not seem to empathize with struggling customers and feel like they’re being treated like a number and not a person
- Some don’t seem to have the expertise to address client’s claims directly, especially with customers inquiring about unexpected charges
Frequently Asked Questions (FAQs)
RBC Insurance is a brand name for the insurance operating entities of the Royal Bank of Canada, Canada’s biggest bank, and one of the largest in the world based on market capitalization.
RBC Insurance was purchased by Aviva Canada Inc. for $582 million dollars.
RBC allows you to cancel your policy at any time. To do so, you must contact RBC directly by phone.
RBC Insurance does have brokers, but RBC Insurance itself operates as a subsidiary of the Royal Bank of Canada. RBC Insurance and RBC Insurance brokers are trusted by Canadians all over the nation.
Get In Touch With Us Today
If you’re not sure of what’s the best insurance product or company for you, working with a life insurance specialist can help you find the best solution to fit your particular situation. At Protect Your Wealth, we’ve been providing expert advice for all types of life insurance since 2007.
As your broker and financial planner, we work with you to create a personalized plan for your family or business that covers and meets your needs. On a related note, take a look at our in-depth review another life insurance provider in Canada: Canada Protection Plan!
Contact Protect Your Wealth or call us at 1-877-654-6119 to talk to an advisor today. We’re proudly based in Dundas, and service clients anywhere in Ontario, Alberta, and British Columbia, including areas such as Mississauga, St. Albert, and Victoria.
Leave A Comment