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The Royal Bank of Canada (RBC) insurance claims it provides “affordable life insurance for your loved ones” — so we decided to take a closer look at their products to see how they compare to similar offerings on the market. Continue reading this RBC Life Insurance review to learn if they are the right insurer for you.
Who is RBC Insurance?
Created in 1960, RBC Insurance is the brand name for all insurance operating entities of the Royal Bank of Canada — which is one of Canada’s most trusted insurance providers. RBC Insurance is the single largest bank-owned insurance provider in Canada, with roughly 2,500 employees and more than four million customers worldwide.
RBC Facts & Financial Information
Founded: 1864
Head Offices: Downtown Toronto, ON
AM Best Financial Strength Rating: A
BBB Rating: N/A
Financial Assets: $15 billion
Insurance Premiums: $4 billion annually
For most people, price is the most important factor when buying life insurance. While that is understandable, it is not the only thing that matters. For example, an insurer’s financial strength is no less important. This metric demonstrates the insurers ability to pay its policies and contracts. A good rating here is essential. Otherwise, your loved ones may find that the insurance company no longer exists when they go to file a claim.
With RBC Life Insurance, you can rest easy on this count. The insurer managed an A rating (Excellent) from AM Best — a credit rating agency that focuses on the insurance industry. This means you can count on RBC to deliver your policy pay-out when the time comes — 20, 30, or even 50 years down the line.
RBC Life Insurance Reviews
Many people look at online reviews — like those on Google Reviews and Insureye — to get an insight into an insurer’s customer service.
But here is the thing: These platforms may not always be able to paint the whole picture.
Generally, people tend to use these platforms when they are unsatisfied with an experience. When someone has a good experience, you are less likely to hear from them because they have received the expected level of service.
However, if someone has a negative experience while dealing with the insurer’s customer service team, they are more likely to leave a comment in the review sections, as they did not receive the expected level of service. Sometimes, minor administrative errors can lead to a negative review which does not necessarily mean the insurance company as a whole is bad.
Sadly, RBC’s reviews on Google Reviews and Insureye do not instill much confidence. The RBC Life Insurance review scores are 1.6 and 1.7 (out of 5), respectively.
These scores are low, but they are not atypical for life insurers of their size. For example, SunLife and Manulife — direct competitors of RBC — have similar Insureye scores, 1.5 and 1.6, respectively.
The long and short of this is: Check online reviews but do not base your decision solely on them because they may fail to give you the full picture.
RBC Life Insurance Review:
Customer Complaints: 1.6 / 5 based on Insureye Reviews and Google Reviews
Dundaslife.com Rating: 4.0 / 5 stars ★★★★
Products and Features
RBC term life insurance is available in two types — YourTerm and Simplified Term.
YourTerm Life Insurance
This is RBC’s flagship product, allowing applicants to pick any term from 10 to 40 years. YourTerm is designed for Canadians who want term life insurance for a specific number of years. Your premium rate will depend on the length of the policy term. The longer the policy term, the greater the premium.
This product could make sense for all those who need term life insurance for a certain length of time until they pay off their mortgage, their children are financially independent, or they retire. For example, if your home loan will last another 21 years, you can cover it by taking a 21-year YourTerm policy from RBC Life Insurance. If anything happens to you during this period, your family can use the payout to pay off the mortgage.
You can take out a YourTerm policy to cover a single life or two lives (that is, as a joint first-to-die policy). A first-to-die policy covers two lives but pays out only once — on the first death. Most likely, you will have to take a medical test and answer a health questionnaire to qualify.
Main features:
- Coverage Amount Available: $1,000,001 - $25,000,000
- Flexible: Pick any policy term from 10 to 40 years
- Convertible: Convert your term life policy to a permanent one without submitting proof of insurability
- Exchangeable: Exchange a 10-year term policy for a longer term policy (like 15 or 20 years) without a medical exam
Simplified Term Life Insurance
If you are looking for a term life policy of $1,000,000 or less, Simplified term life may be right for you. And the best part: You do not need to undergo a medical exam to qualify.
Main features:
- Coverage Amount Available: $1,000,000 or less
- Flexible: Pick any policy term from 10 to 40 years
- Convertible: Convert your term life policy to a permanent one without submitting proof of insurability
- Exchangeable: Exchange a 10-year term policy for a longer term policy (like 15 or 20 years) without a medical exam
- 30-Day Review Period: You get a full refund if you cancel your policy within the first 30 days
- Accidental Death Benefit: Pays an additional death benefit to your beneficiary if your death occurs as the result of a covered accident
Other Insurance Coverage Offered by RBC Life Insurance
RBC Insurance also offers the following life insurance products:
Whole Life Insurance
RBC Insurance provides participating whole life insurance to eligible Canadians. That is, a whole life policy that gives you a chance to earn dividends. You can buy the policy to cover a single life or two lives.
Main Features
- Security for Life: The policy lasts as long as you do
- Dividend: Four different options for receiving dividends
- Coverage Amount Available: $25,000 to $25,000,000
- Juvenile Guaranteed Insurability Benefit: In case you purchase a policy for a child, they can buy additional coverage when they turn 18 without a medical exam
Permanent Life Insurance
Besides whole life insurance, RBC Insurance offers two additional permanent life policies — Guaranteed Acceptance Life Insurance and Term 100 Life Insurance. Both policies last your entire lifetime but do not accumulate cash value.
Guaranteed Acceptance Life Insurance
This is a good option for Canadians looking for a life insurance policy to cover their end-of-life expenses, particularly if age or health prevents them from getting a standard policy. You do not need a medical exam to qualify and the coverage is guaranteed as long as you meet the age criteria.
Main Features
- Guaranteed Acceptance: You automatically qualify if you are in the age group of 40 to 75
- Lifetime Coverage: The coverage lasts your entire life, and the insurer can neither cancel the policy nor change the premium rate
- Coverage Available: $5,000 - $40,000
- 30-Day Review Period: You get a full refund if you cancel your policy within the first 30 days
- Accidental Death Benefit: Pays an additional death benefit to your beneficiary if your death occurs as the result of a covered accident
Term 100 Life Insurance
Even though it has the word “term” in its name, this plan covers you for life. Most likely, you will have to take a medical test and answer a health questionnaire to qualify.
Main Features
- Lifetime Coverage: You are covered for life
- Guaranteed Premiums: The premium rate will remain the same throughout
Universal Life Insurance
RBC’s Universal Life Insurance Plan is geared towards those who want greater flexibility and a range of investment options. You can buy the policy to cover a single life or two lives.
Main Features
- Lifetime Coverage: The coverage lasts your entire lifetime
- Investment Options: You can create the portfolio that best works for you
- Flexibility: Decide how much premium you will pay and how you will pay
- Death Benefit Options: You can either opt for a level death benefit or increasing protection (The death benefit will be equal to your coverage amount plus the accumulation value)
Riders Offered by RBC Life Insurance
Our RBC Life Insurance Review shows the insurer offers several riders. That is good news for people with unique life insurance needs.
- Term Rider – You can buy additional life insurance for a specific term over and above your basic coverage
- Child Term Rider – RBC Insurance will pay out a death benefit if one of your children passes away
- Accidental Death Benefit - If you die due to a covered accident, RBC insurance will pay your family an additional payment
- Total Disability Waiver of Premium Benefit Rider – If you are disabled for six months, RBC Life Insurance will waive off your remaining premiums and policy fees
- Payor Death and Disability Waiver of Premium Benefit Rider – If someone else paid the premiums of your policy and he or she passes away, RBC Insurance will waive off the remaining premiums with certain exclusions
RBC Term Life Insurance Rates
For most people, term life insurance is a good option. It is affordable and easy to understand. We got quotes from RBC Insurance to find out their rates.
Here are the monthly premium rates for non-smoking, healthy men and women of different ages. These quotes are $400,000 coverage over a 20-year term length.
Term Life Insurance - Prices Based on Customer Characteristics
Life insurers take into account many factors when setting your premium rates. Besides your age, gender, and sex, they consider your health, smoking status, medical history, and more.
So, how does RBC Insurance stack up against others when it comes to customer characteristics?
Let’s find out.
Term Life Insurance Review - Price Comparison vs. Competitor Products
Do not want to pay a penny extra for term life insurance than you have to?
Then do some comparison shopping. Get quotes from multiple providers and compare them — this is the only way to ensure you get the best value. We twice compared RBC against Manulife to find out who offers better rates.
Here are the results:
Example: 40 Year Old Male, Non Smoker, Regular Health, 20 Year Term:
RBC Insurance $400K - $45.11
Sun Life $400K - $50.13
Cost Savings over 20 years: $1205
RBC Insurance Pros
- Strong Financial Standing
AM Best awarded RBC Life Insurance A rating. That goes to show it is well-placed financially, which is exactly what applicants want.
- Allows You Pick Any Term
With RBC’s YourTerm, you can pick coverage for 10, 15, 20, or 40 years (and anything in between).
- Affordable Term Life Policy
RBC Life Insurance boasts some very good rates. In fact, they are the among most affordable life insurers in Canada.
- Great Selection of Products
RBC Insurance offers the full gamut of life insurance products, including traditional and simplified term life insurance.
RBC Insurance Cons
- Expensive for Smokers
Our RBC Life Insurance review shows their rates tend to be higher than the average for smokers.
- No Digital Policy Option
RBC Life Insurance still does things the old way. They only provide a paper policy — something which may not go well with the younger customers.
Conclusion - Is RBC Insurance right for you?
RBC Life Insurance is a financially sound company offering a full range of life insurance products at competitive rates. If you are looking for life insurance, it is one name you would want to keep at the top of your list.
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How can we help you? Our team is happy to help answer any questions you have.
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