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Are you in the market for life insurance?
If so, you may be wondering if RBC Life Insurance is a good option. In this post, we'll take a look at what RBC offers and compare it to some of the other options out there. Researching various life insurance companies is essential prior to making a final decision on a policy.
By the end, you should have a good idea of whether or not RBC is right 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 is headquartered in Toronto, Ontario. The business of RBC is in providing banking and financial services to its customers which include individuals, businesses, and governments.
RBC has a wide range of products and services that it offers, which include personal and business banking, wealth management, insurance, and investment banking. RBC is a leading provider of banking, insurance, and investment products and services to individuals, small businesses, and commercial clients in Canada, the United States, and select international markets.
RBC Facts & Financial Information
The Facts
Founded in 1864
Headquartered at Downtown, Toronto, ON
Financial Information
$15 billion in Financial Assets
~$4billion in annual insurance premiums
For most people, price is the most important factor when buying 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 claims.
With RBC 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's insurance to deliver your life insurance 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 assessment which does not necessarily mean the insurance company as a whole is bad. RBC Insurance does not provide funeral insurance, often known as burial insurance.
Sadly, RBC’s reviews on Google Reviews and Insureye do not instill much confidence. The RBC Insurance assessment scores are 1.6 and 1.7 stars (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 Insurance— 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 policy is available in two types — YourTerm and Simplified Term. Term life insurance is categorized into 3 lengths - short, medium or long term.
YourTerm Life Insurance
This is RBC’s flagship insurance product, allowing applicants to pick any term from 10 to 40 years. YourTerm is designed for Canadians who want a term life coverage for a specific number of years. Your premium rate will depend on the length of the life insurance policy term. The longer the policy term, the greater the premium.
The products could make sense for all those who need term policies 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 Insurance. If anything happens to you during this period, your family can use the payout to pay off the mortgage. This helps residents who have to pay off a 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 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: Your beneficiary gets an additional death benefit if your death occurs as the result of a covered accident
Short-term health insurance provides temporary life insurance coverage while your permanent coverage is lapsed, saving you from costly medical expenditures resulting from unforeseen health changes or emergencies.
Other Insurance Coverage Offered by RBC Life Insurance
RBC Insurance also offers the following life insurance products:
Whole Life Insurance
RBC Insurance provides participating permanent life insurance to eligible Canadians. That is, a permanent life insurance 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 Amounts 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
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Find the best rates
Permanent Life Insurance
Besides permanent life insurance policy, 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 policy to cover their end-of-life expenses, particularly if age or health prevents them from getting a standard policy. Many clients choose to take out a life policy to cover their end-of-life expenses, particularly if age or health prevents them from getting a standard policy. The client does not need a medical exam to qualify and 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
RBC Universal Life Insurance
RBC’s Universal Life Plan is geared towards those who want greater flexibility and a range of investment options. You can buy the RBC universal life 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 the amount of your coverage plus the accumulation cash value)
Riders Offered by RBC Life Insurance
Our RBC Insurance Assessment shows the insurer offers several riders. That is good news for people with unique life insurance needs.
- Term Rider – You can buy additional life policy 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 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, a term RBC life insurance policy 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. The RBC life insurance quote is $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 policy 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 Insurance 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 - $42.30
Sun Life $400K - $50.13
Cost Savings over 20 years: $1879
RBC Insurance Pros
- Strong Financial Standing
AM Best awarded RBC Insurance A rating. That goes to show it is well-placed financially, which is exactly what applicants want before filling any application. When it comes to insurance companies, money is everything. Applicants will be skeptical of them if they are not financially secure.
- Allows You Pick Any Term
With RBC’s YourTerm, RBC insurance offers affordable coverage in increments of 10, 15, 20, or 40 years (and anything in between).
- Affordable Term Life Policy
RBC Insurance offers some very good rates. In fact, there is evidence that they are among the most affordable life insurers in Canada.
- Great Selection of RBC Life Insurance Products
RBC Insurance offers the full gamut of life insurance products, including traditional and simplified term life insurance policies.
RBC Insurance Cons
- Expensive for Smokers
Our RBC Insurance assessment shows their rates tend to be higher than the average for smokers. Even if you have had a stroke or a heart attack, your rates may be higher.
- Expensive for people long-term health conditions
People who have long-term health conditions like cancer, heart disease, stroke, and even if you've had an injury will pay a higher premium.
- No Digital Policy Option
RBC Insurance offers a paper life insurance policy — something which may not go well with the younger customers.
Who is eligible for RBC Insurance?
There are many different types of insurance available through RBC Insurance, so it is difficult to give a definitive answer without knowing more about your specific needs. RBC Insurance offers a variety of insurance policies to individuals aged 18 and over, with some type of insurance coverage available to all eligible applicants. Underwriting is the process by which RBC Insurance assesses an individual's risk in order to determine the premium that will be charged for coverage. Because there are numerous life insurance companies, it is critical to conduct research before acquiring a life insurance product.
Conclusion - Is RBC Insurance right for you?
Note that there are many benefits to having life insurance, including peace of mind, financial security for your loved ones, and the ability to leave a legacy.RBC Insurance is a financially sound insurance 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. Besides life insurance plans, RBC also offers auto insurance, travel insurance, health insurance, disability insurance, critical illness insurance, etc. If you have any questions, speak with a Dundas Life agent online or through the phone so we can help you select the best product for your needs and provide you with sound advice.
👉 See our top picks for life insurance companies in Canada
FAQ
What is the difference between an annuity and life insurance?
Life insurance pays compensation to a person's loved ones after they pass away. Annuities receive advance payments and then give policyholders with a lifetime income stream until they pass away.
What are the risks associated with variable life insurance?
Variable life insurance, like mutual funds, entails investing risks. You could lose money, including your initial investment, if the investment options you chose for your policy perform poorly.
Who are the main competitors for RBC life insurance?
The main competitors for RBC life insurance are Manulife, Sun Life, and Great-West Life.
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