Fact CheckedThere are plenty of RBC Life Insurance reviews online, but brand recognition doesn’t guarantee the right fit for you.
RBC Life Insurance is competitive, but each company has different products and underwriting processes. Underwriting is the procedure that life insurance companies use to assess you and determine your coverage costs.
“You are not getting any younger, so even if you don’t have kids yet, it’s probably the best time to get life insurance. You can always cancel it later, but you can’t go back and find a new policy at a lower rate. Lock it in now and you’re set for decades to come.”
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RBC Life Insurance History
The Royal Bank of Canada (RBC) was founded in 1864 as the Merchants Bank of Halifax. It started as a commercial bank that financed the fishing, timber, European, and Caribbean import/export industries.
In 1901, the bank was rebranded as the Royal Bank of Canada and moved its head office to Montreal, expanding its presence in Manitoba, Saskatchewan, and Ontario.
RBC Life Insurance was established in the 1960s. Following several mergers, it was recognized as one of the world’s top 100 most influential brands in 2007, demonstrating its significant financial influence. This article will focus on RBC’s life insurance offerings.
But to give you some idea of the vast array of insurance products they carry, check this out:
- Life insurance
- Disability Insurance
- Health Insurance
- Auto Insurance
- Home Insurance
- Travel Insurance
- Wealth and reinsurance advice
- The creditor and business insurance services for individual, business, and group clients
RBC Financial Rating
Doing your homework regarding this sort of investment is VERY important.
Yes, Siree.
But the good news is, it’s pretty darned easy because we have financial ratings. Experts review current insurers to see how they perform so you can make an educated choice.
AM Best has affirmed the Financial Strength Rating (FSR) of A (Excellent) and the Long-Term Issuer Credit Rating (Long-Term ICR) of “a+” of RBC Life Insurance Company (RBC Life) (Mississauga, Ontario). The outlook of these Credit Ratings (ratings) is stable.
AM BEST
AM Best Affirms Credit Ratings for RBC Life Insurance Company
Oh, yeah! Now, that’s what I like to hear. Knowing that RBC life insurance has your back, you can sleep like a baby.
RBC Life Insurance Reviews on the ‘Net
Ok, life insurance company reviews are a slippery slope. I don’t have much faith in them.
Why? From what I have seen over the past two years writing these reviews, people like to complain.
Don’t get me wrong. I am sure many of the complaints are justified. The thing is, you have to remember that companies like RBC close thousands of transactions.
And chances are you are waiting to hear from the people who had a terrific experience. That’s because they expect good service.
You also have to consider the products people are reviewing. Some companies, like RBC Insurance, carry a wide range of products.
So, you need to ensure the complaints you read are relevant.
RBC Life Insurance Products
Oh yeah! This is my favorite part.
As a life insurance broker, I need to be familiar with the products I sell. They are constantly changing, and each insurer has its own take.
Please don’t assume that all life insurance companies are created equal because they are not.
So, let’s find out what RBC insurance offers right now!
Term Life Insurance
1. RBC Your Term Life Insurance
RBC Term Life Insurance offers 10-year to 40-year terms. Yes, that’s right—40-year term life insurance!
For example, you can purchase a 40-year term policy up to 45. That’s not bad; you get guaranteed coverage to age 85.
RBC insurance allows you to customize any term period from 10 to 40 years in one-year increments.
Do you still have a mortgage amortized over 25 years? That’s no problem; you can purchase a 25-year RBC term life insurance policy to cover it.
If you’re in your 50s and have taken on a second mortgage or longer-term debt, you can lock down any coverage period up to age 85. For example, a 35-year term for a 50-year-old, a 30-year term for a 55-year-old, and a 27-year term for a 58-year-old.
You can purchase RBC Term insurance as a single policy or as a joint first-to-die.
What’s a joint first-to-die?
It’s a policy with two people, usually spouses, designed to pay out a benefit on the first death only. For example, a married couple purchases an RBC joint first-to-die 20-year term policy for $500,000. When the husband dies prematurely from a massive heart attack, his spouse is paid out the $500,000 death benefit.
After that point, they no longer have coverage. Why would anyone want this type of policy?
Joint first-to-die coverage for a couple can be more affordable than purchasing two individual term policies. If you’re considering this option, contact an experienced independent insurance broker who can help you crunch the numbers!
One of the unique features of RBC Term Life Insurance is that it offers very high coverage amounts. For example, you can get 10 – 40 years of protection for $100,000- $25,000,000. This may interest you if you are a high-net-worth individual or have business interests.
As expected, all RBC Your Term policies are convertible to RBC permanent coverage (Universal & whole life) up to the age of 71. This is a must-have feature with any term life insurance policy.
It means that if, God forbid, your health takes a turn for the worse or something happens, your insurability is guaranteed moving forward.
Optional RBC Term Life Insurance Riders include:
-
- RBC Your Term 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
2. RBC Simplified Term Life Insurance
RBC Simplified Issue Term Life Insurance is touted as a quick way to get up to $1 million of term coverage without jumping through many hoops (i.e., medical exams).
A closer look at the fine print says, “may not require a medical exam.” This is code for, ‘If you have any health issues whatsoever, expect to undergo a life insurance medical.’
This may be an excellent route if you’re under 50 and healthy.
Like RBC Your Term, you can purchase a 10-—to 40-year term or anything in between. It also has pretty much the same options and guarantees. The coverage amounts available are $50,000 – $1,000,000.
RBC Mortgage Insurance
RBC underwrites thousands of home mortgages across Canada every year. Like Scotiabank and other major financial institutions, RBC offers its brand of mortgage protection to clients who borrow from it to finance their homes. This product is called RBC Home Protector.
An offer for mortgage insurance is often attached to the back of your closing documents. Because of that, many Canadians think mortgage life insurance is mandatory when it’s not. I believe it’s the worst option for protecting your home and family.
Why? Mortgage life insurance is designed to protect the lender, not you. If you want to read one of the most in-depth and detailed reports about the pitfalls of mortgage insurance through your financial institution, click here.
So, what’s the best solution for protecting your RBC mortgage?
It’s an individual life insurance policy. So, when you get to the back page of your mortgage documents, opt out of the Home Protector Insurance RBC offers. Instead, speak with an independent life insurance agent and purchase individual term policies from RBC, and you can save thousands!
For a free individual RBC life insurance quote, click here.
Permanent Life Insurance
1. RBC Guaranteed Acceptance (No Medical Life Insurance)
If you are looking for final expense insurance and you have severe health issues, this may be a good bet for you. You may obtain coverage from $5,000 – $40,000. This is perfect to cover funerals, outlying debt, or to provide a nest egg for a loved one.
This coverage is offered to Canadians ages 40 – 75. The good news is you are instantly approved, with no medical exam or health questions required. As with anything else, there’s a bit of a catch. You must live past the two-year waiting period before your benefits are ready.
I don’t recommend Guaranteed Acceptance for people who are healthy or have mild to moderate health issues. There are very likely other non-medical life insurance options for you that will be more affordable.
2. RBC Term 100 Life Insurance (for Conversion ONLY)
You cannot buy RBC Term 100 if you walk off the street. It is ONLY available to existing RBC policyholders for conversion purposes. The information on their site leads people to believe they can purchase this coverage right out of the gate, but that’s not the case.
RBC’s conversion option allows anyone with an in-force term policy with RBC to exchange it for permanent coverage (RBC Term 100).
The name “Term 100” is also confusing as it contains the word “Term,” which makes you think it’s NOT permanent. However, Term 100 is permanent insurance.
How does it work? You pay level premiums until you die or reach the age of 100. Sounds strange. I mean, how many people are going to live to be 100?
With Term to 100, you pay the pure cost of the insurance. Unlike whole life, the policy has no cash value.
RBC Term 100 Coverage is available to people 18 – 85 years of age from $50,000 and up.
Options available:
- Joint First-to-Die and Joint Last-to-Die Options
- 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
4. RBC Universal Life Insurance
Like RBC term 100, RBC Universal Life Insurance offers coverage until the day you die.
There are two coverage options:
- Level protection: Pays out a death benefit equal to the coverage amount OR the amount accumulated in your policy. The more significant amount will be paid to your beneficiary.
- Increasing protection: Pays out a death benefit equal to the coverage amount PLUS the accumulation value.
You can purchase this policy from ages 0 – 85.
The following options are available:
- Joint First to Die or Joint Last to Die Options
- Disability Benefit
- Compassionate Advance: If you get terminally ill, you can get a cash advance of up to 50% of the death benefit (Max $250K)
- Additional Term Insurance
- Children’s Term Rider
- Accidental Death Benefit Rider
5. RBC Whole Life Insurance
RBC Whole Life Insurance offers coverage until the day you die.
Whole life insurance may be ideal if you want to maximize your estate growth and tax liabilities, leave money for a child or take care of your end of life costs.
You can purchase this policy from ages 0 – 80.
The following options are available:
- Joint First to Die or Joint Last to Die Options
- Disability Benefit
- Compassionate Advance: If you get terminally ill, you can get a cash advance of up to 50% of the death benefit (Max $250K)
- Additional Term Insurance
- Children’s Term Rider
- Accidental Death Benefit Rider
- you can choose to pay premiums for 10, 20 years or for life
Are you thinking about permanent options? Contact Policy Architects Today! Click here to get free whole-life quotes or schedule a call.
Critical Illness Insurance
If you’ve been reading my blog, you know that critical illness insurance is a policy meant to cover the gaps left between your health insurance and life insurance.
People are increasingly getting illnesses like cancer, but due to technology, they are living years past their diagnosis.
What happens to your family if you DON’T die?
This is where Critical Illness insurance comes in. RBC offers two different plans:
Critical Illness Recovery Plan
RBC’s critical illness recovery plan protects you from over 30 illnesses and conditions. You can purchase coverage from ages 18 – 65. Coverage amounts available are $25,000 – $2,000,000 for a term of your choice.
One excellent option is to convert your coverage to Long-Term Care Insurance without providing medical evidence if you are 55 – 65.
You also have access to the following services :
- Best Doctors
- Medical Confidence
- Daily Living Assistance
- The Healing Journey Program
- Early Assistance Benefit
Please note that preexisting conditions are NOT covered, and a 90-day survival period is attached to Cancer.
There are three payment options:
- Level premiums to age 75 (non-cancellable)
- Level premiums to age 65 or 75 (guaranteed renewable)
- 10-year term renewable to age 75
Critical Illness Insurance Plan
RBC’s CI plan protects you from the most common critical illness claims:
- Cancer
- Heart Attack
- Stroke
Because it covers a few conditions, it’s less expensive. People ages 18 – 50 can purchase a 10-year renewable term to age 65. Coverage amounts available are:
- Lump Sum: $10,000, $25,000, $50,000 or $75,000
You also have access to the following services :
- Best Doctors
- Medical Confidence
- Daily Living Assistance
- The Healing Journey Program
- Early Assistance Benefit
- Return of Premium (this is optional)
Please note that preexisting conditions are NOT covered, and if you have certain medical conditions, you may not qualify. There is a 90-day survival period attached to Cancer.
Critical Illness Final Thoughts
Critical Illness insurance is a complicated product, as claims are ONLY paid out when your illness fits the specific definitions in your policy. I agree with advisors who think critical illness coverage should be considered only after you’ve addressed your life and disability insurance needs.
Disability Insurance
Disability insurance is a good thing to have. Did you know the following percentages of our population have a disability:
- 13% of our youth
- 20% of working adults 25 – 64 years of age
- 38% of seniors 65 and older
The numbers speak for themselves…
…and 1.6 million Canadians with disabilities were unable to afford required aids, medications, or devices due to costs.
This sort of coverage protects you and your family should a disability occur, and RBC has a fantastic selection:
- Simplified Disability Insurance: Affordable protection for people 18 – 55. You can protect up to 75% of your income or $500, $1000, or $1500 monthly. No medical exam is required, but you must work more than 30 hours per week.
- RBC Professional Series: This policy is for professionals needing more protection. Coverage is available from 18 to 60, and benefits may be received for 2 or 5 years until age 65. This plan offers many more options and is also more expensive.
- RBC Foundation Series: This is total disability protection and return-to-work assistance. It is available for people 18 – 60, and benefits may be received for 2, 5, or 10 years until age 65.
- RBC Bridge Series: This is disability protection and return-to-work assistance similar to the Foundation Series for less money. It is available for people 18 – 60, and benefits may be received for 2 or 5 years until age 65.
- RBC Quantum: This program offers disability coverage and a return-to-work assistant to cover a 20% reduction of income or less. It is available for people 18 – 60, and benefits may be received for 2 or 5 years until age 65.
- RBC Fundamental Series: Simple Illness coverage—answer three questions to qualify. It is available for people ages 18 – 64 for illness and 18 – 69 for injury (monthly benefit).
- Retirement Protector: If you are disabled, this coverage contributes to your RSP if you can’t. It is available for people ages 18 – 55.
RBC Life Insurance Reviews Quotes
This is the part of the review everyone wants to see.
I get it! Getting a ballpark idea of how much life insurance will cost you is essential. The thing to remember is that it’s not a science.
Online quotes should only be used to get a general idea of costs. You have no idea how an underwriter will view you, and that’s very important. Your rating and company choice greatly affect how much you spend.
They are not all created equal; some are more lenient than others regarding medical conditions.
|
Age |
$250,000 |
$500,000 |
|---|---|---|
| 35 Year Old Male | $20.84 | $31.32 |
| 35 Year Old Female | $16.54 | $22.95 |
| 40 Year Old Male | $27.79 | $45.23 |
| 40 Year Old Female | $21.62 | $33.53 |
| 45 Year Old Male | $45.20 | $71.87 |
| 45 Year Old Female | $32.85 | $51.62 |
| 50 Year Old Male | $70.85 | $123.93 |
| 50 Year Old Female | $50.40 | $82.94 |
| 55 Year Old Male | $125.57 | $183.47 |
| 55 Year Old Female | $86.22 | $124.97 |
| 60 Year Old Male | $223.81 | $345.29 |
| 60 Year Old Female | $157.66 | $231.98 |
| 65 Year Old Male | $373.52 | $550.22 |
| 65 Year Old Female | $252.25 | $424.67 |
*Quotes above are for RBC Your Term 20, Standard Health Class, non-smoker. Your rates may differ depending on your unique circumstances. July 2023.
RBC Pros
1. This Company Has a GREAT History and Financial Rating
RBC is one of the most influential brands in the world, and it has a long and illustrious history.
This isn’t just my opinion. AM Best gives them an A rating, so you can rest easy knowing your financial investment is safe.
2. A Terrific & Easy to Navigate Platform
RBC provides a lot of information about their products on their website.
You can easily compare and contrast different products with a simple tool.
I appreciate this, as many companies keep this information close to the vest.
Also, if you want to apply immediately, they offer this option for their guaranteed acceptance and simplified issue products.
However, I will reiterate that you should ALWAYS get information from an independent agent before taking the plunge. We can save you a pretty penny.
2. Quick, Easy Electronic Application
Once you decide on the right coverage, you can complete your RBC life insurance application over the phone with your agent. When the application is complete, you execute an electronic signature through text or email, and voila—you’re done!
3. Nice Selection of Products
RBC has a good selection of products. They offer Simplified-Issue Term Life Insurance, Traditional Term Life Insurance, Critical Illness Insurance, and Disability Insurance.
4. Most Affordable Term Coverage on the Market
RBC Insurance has excellent rates! It is a fantastic company and often comes up as one of the less expensive insurers. Some insiders speculate that RBC lures consumers with low-term insurance rates to create opportunities to cross-sell its other product lines.
5. Longer Term Coverage – Up To 40 Years!
RBC has some of the longest-term coverage available in the Canadian marketplace. Within prescribed age limits, you can get 40-year term coverage. That’s a guaranteed level of monthly cost for 40 years!
6. Great Disability Insurance Product Suite
RBC is very popular in the disability insurance marketplace. They have one of the largest selections of DI products in Canada.
RBC Cons
1. Until recently, few Permanent Life Insurance Products
Up until recently, RBC has only offered permanent insurance as a conversion option for its in-force term policyholders.
RBC now offers standalone Universal Life and whole life coverage.
2. Stricter Underwriting
RBC life insurance underwriters have a reputation for being conservative. This is probably because they sell a lot of low-cost term insurance. RBC enforces strict underwriting to keep claims to a minimum. If you have mild to moderate health issues, such as well-managed diabetes, you may have better luck elsewhere.
A knowledgeable independent agent can point you toward a more lenient carrier.
Is RBC Right for YOU & Your Family?
RBC Insurance is an “A” rated company with a long history in Canada. They could be your best bet for affordable term coverage if you have no health issues. However, if you’re looking for a permanent option like your whole life, you’re better off looking at other companies.
I am sure you have noticed a common thread if you have been reading my life insurance reviews.
First and foremost, always consult an independent life insurance agent if you want the best possible prices. We know the ins and outs of Canada’s top life insurance companies.
Compare RBC Insurance Quotes with Other Life Insurance Companies Before You Decide
Even if you have a highly complex situation, brokers can compare your circumstances to those of different companies to see the outcome BEFORE applying formally.
You’re not alone if you are considering purchasing an RBC life insurance policy. They’re an excellent company, but are they your best insurer? Let’s find out – call us now!
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