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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 Life Insurance offers and compare it to some of the other options out there. Researching various life insurance companies is essential prior to making a final choice on a policy.
By the end, you should have a good idea of whether or not RBC Life Insurance 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 the most trusted insurance providers in Canada.
RBC Insurance is the single largest bank-owned insurance provider in the country of Canada, with roughly 2,800 employees and more than five 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 life insurance 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 Insurance Facts & Financial Information
The Royal Bank of Canada was founded in 1864
Headquartered at Downtown, Toronto, ON
Financial Information
$2.2 trillion in assets
~$4 billion in annual insurance premiums
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 all its policies and contracts. A good rating here is essential. Otherwise, you may find that the insurance company no longer exists when they go to file claims.
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's insurance company to deliver your life insurance 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 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 anyone has a negative experience while dealing with the insurer’s customer service team, they are more likely to leave a comment in the review portion of the site, 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’ reviews on Google Reviews and Insureye do not instill much confidence. The RBC Life Insurance company assessment scores are 1.6 and 1.5 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, 2.0 and 1.8, 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 ★★★★
Life Insurance Products
RBC term life insurance policies are 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 insurance coverage for a specific number of years. Your premium rate will depend on the length of the insurance term. The longer the term, the greater the premium.
The products could make sense for all those who need their term life insurance policy to last 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 from RBC Insurance. If anything happens to you during this period, your family members 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 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 term from 10 to 40 years
Convertible: Convert your term life insurance to a permanent life insurance without submitting proof of insurability
Exchangeable: Exchange a 10-year term life insurance for a longer term life insurance (like 15 or 20 years) without a medical exam or medical evidence
10-Day Review Period: You get a full refund if you cancel your policy within the first 10 days
Simplified Term Life Insurance
If you are looking for a term life insurance of $1,000,000 or less, Simplified RBC term life insurance 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 Term Policy: Pick any policy term from 10 to 40 years
- Convertible: Convert your term life insurance to a permanent life insurance without submitting proof of insurability
- Exchangeable: Exchange a 10-year term life insurance for a longer term life insurance (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 Life Insurance Coverage That RBC Insurance Offers
The following are also what RBC Insurance offers:
Whole Life Insurance
RBC Permanent Life Insurance, also known as whole life insurance, provides participating life insurance to all eligible Canadians. That is, a whole life insurance policy that gives you a chance to earn dividends. You can buy the policy to cover a single life or two lives. You could choose a Life Pay (to age 100) plan, 10-year payment plan, or 20-year payment plan.
Some benefits of purchasing a whole life insurance from RBC include tax-deferred growth potential, guaranteed premiums that never increase, and a guaranteed death benefit. There are five dividend options available, like policy loan options.
There is also a monthly or annual payment flexibility, and an automatic premium loan feature to maintain coverage if payment is missed. The policy san be used for estate planning, retirement funding, and business purposes. There is an option to add term insurance riders and other coverage enhancements as well.
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 life insurance coverage when they turn 18 without a medical exam
- Age: 0-80 years old
RBC offers two participating whole life insurance products with distinct features:
RBC Growth Insurance
Features
- Coverage range: $25,000 to $25,000,000
- Cash value accessible after 5 years
- Available for ages 0-80
- Includes Juvenile Guaranteed Insurability Benefit for policies on children under 18
RBC Growth Insurance Plus
Features
- Coverage range: $250,000 to $25,000,000
- Cash value accessible after first year
- Available for ages 0-80
- Designed for faster tax-deferred growth
The main difference between the two products lies in their minimum coverage amounts and cash value accessibility timing, with Growth Insurance Plus designed for those seeking faster access to cash values and higher coverage amounts.
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Find the best rates
RBC Permanent Life Insurance
Besides whole life insurance policy, RBC Insurance offers two additional permanent life insurance 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
Guaranteed acceptance life insurance is a good 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. Many clients choose to take out a life policy to cover these expenses, particularly if age or health prevents them from getting a standard policy. The client does not need a medical exam to qualify for guaranteed acceptance life insurance, and coverage is provided as long as the age requirements are met.
Main Features:
- Guaranteed Acceptance: You automatically qualify if you are in the age group of 40 to 75
- Lifetime Coverage: The permanent life insurance 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 all of your life
- Guaranteed Premiums: The premium rate will remain the same throughout
RBC Universal Life Insurance
The RBC Universal Life Insurance plan is geared towards those who want greater flexibility and a range of options in investments. You can buy the RBC universal life insurance policy to cover a single life or two lives.
Main Features:
1. Lifetime Coverage:
The RBC Universal Life Insurance coverage lasts your entire lifetime
2. Investment Options:
You can create the portfolio that best works for you
3. Flexibility:
Decide how much premium you will pay and how you will pay
4. Death Benefits:
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 That RBC Insurance Offers
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 RBC term life insurance policy is a good option. It is affordable and easy to understand. We got the RBC Life Insurance quotes 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 Life 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. Ask for a quote from multiple providers and compare them — this is the only way to ensure you get the best value, and ensure that you pick a life insurance that fits your income. We twice compared RBC Life 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 Life Insurance $400K - $40.90
Sun Life $400K - $49.05
Cost Savings over 20 years: $1956
RBC Life Insurance Pros
1. 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 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.
2. Allows You To Pick Any Term
With RBC’s YourTerm, RBC Life insurance offers affordable coverage in increments of 10, 15, 20, or 40 years (and anything in between).
3. Affordable Term Life Policy
RBC Life Insurance offers some very good rates. In fact, there is evidence that they are among the most affordable of all life insurers in Canada.
4. 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 that are better than other term life insurance providers.
RBC Life Insurance Cons
1. Expensive for Smokers
Our RBC Insurance assessment shows that they are more lenient with non-smokers as 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.
2. 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.
3. 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 life insurance available through RBC Insurance such as auto insurance, travel insurance and critical illness insurance plans, so it is difficult to give a definitive solution 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 insurance providers, it is critical to conduct research before acquiring a life insurance product from RBC Insurance.
Conclusion - Is RBC Insurance right for you?
Note that there are many benefits to having life insurance, including peace of mind, planning financial security for the future of 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 plans, accident insurance, etc. If you have any questions, speak with a Dundas Life advisor online or through a phone so we can help you select the best life insurance product or life insurance quotes for your needs and provide you with sound advice.
👉 See our top picks for life insurance companies in Canada
Frequently Asked Questions
Gregory Rozdeba is the CEO of Dundas Life, Canada’s leading digital insurance brokerage.
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