in ,

RBC Life Insurance: A Canadian Consumer’s Evaluation

RBC Life Insurance Review in Canada: An In-Depth Look for Canadians
RBC Life Insurance Review in Canada: An In-Depth Look for Canadians

RBC Insurance, a subsidiary of Royal Bank of Canada, is one of the largest and most trusted Canadian insurance providers. With a wide selection of term life and permanent life policies to choose from, RBC offers affordable coverage options combined with financial strength and stability.

This comprehensive review provides an extensive, in-depth look at RBC life insurance specifically for Canadians. We’ll cover RBC’s products, pricing, financial strength, customer reviews, eligibility requirements, and more. Read on for expert insights to help you determine if RBC life insurance is the right fit to meet your coverage needs and protect your loved ones.

An Overview of RBC Insurance

RBC Insurance is the brand name for all insurance operations of the Royal Bank of Canada (RBC) – one of the Big Five Canadian banks. Headquartered in Mississauga, Ontario, RBC Insurance provides a diverse range of insurance products and services, including life, health, home, auto, travel, group benefits, and more.

Some key facts about RBC Insurance:

  • Founded in 1968 through the merger of two Canadian insurers
  • Largest bank-owned insurance provider in Canada
  • Over 4 million customers worldwide
  • Approximately 2,500 employees
  • Over $15 billion in assets
  • Annual insurance premiums exceeding $4 billion

RBC insurance prides itself on financial strength and stability. They have maintained an “A” (Excellent) rating from AM Best for over 20 years, indicating strong ability to meet policyholder obligations.

As Canada’s largest bank, RBC has an extensive client base and distribution network for insurance products through its banking branches and advisors. The RBC brand reputation helps attract clients across the country looking for solid coverage backed by a top financial institution.

What Are RBC Life Insurance Products for Canadians?

What Are RBC Life Insurance Products for Canadians
What Are RBC Life Insurance Products for Canadians

RBC Insurance provides an extensive suite of individual and group life insurance solutions designed to meet the diverse needs of Canadians across all life stages:

RBC Term Life Insurance

YourTerm

RBC’s flagship YourTerm policy is completely customizable, allowing you to choose any term length between 10 and 40 years. This flexibility makes it easy to match the policy length to specific financial goals like paying off a mortgage or getting kids through post-secondary education.

YourTerm has high coverage amounts up to $25 million and can include helpful riders for accidental death, disability waivers, and supplemental term life. You can convert to permanent insurance without additional medical underwriting.

Simplified Term

For simplified issue coverage under $1 million, RBC offers streamlined 10-40 year term life insurance with no medical exam required. This affordable option is well-suited for young Canadians just starting out or needing basic protection.

The 30-day review period allows you to cancel with a full refund if unsatisfied. An accidental death benefit rider is included for additional payout in cases of death by accident.

RBC Permanent Life Insurance

Participating Whole Life

RBC’s participating whole life insurance policy provides lifelong coverage along with dividend options that allow policyholders to share in the insurer’s financial success. Dividends can be taken as cash, used to purchase additional insurance, or help offset premium costs.

This policy accumulates cash value that grows on a tax-advantaged basis you can access via loans or withdrawals. The death benefit passes tax-free to beneficiaries.

Universal Life

For permanent protection plus investment growth potential, RBC Universal Life offers a range of self-directed investment options to allocate your policy’s cash value. You have flexibility in arranging premium payments and in how the death benefit is structured.

RBC’s universal life policy is a great way to supplement retirement savings in a tax-efficient manner. The cash accumulation can be accessed tax-free for anything from emergencies to vacations to education costs.

Guaranteed Life

RBC’s guaranteed life insurance provides simple acceptance permanent life insurance for older Canadians or those with health conditions. With no medical exam, approval is guaranteed for simplified amounts between $5,000 and $40,000.

It’s an easy way for seniors to cover final expenses without having to qualify medically. The 30-day review period allows cancellation with a full refund.

RBC Group Life Insurance

RBC also provides extensive group life and benefits programs for Canadian employers to cover their workforce. Group plans offer cost-efficient pricing, simplified underwriting, and the convenience of employer-paid premiums.

Employees can secure up to $1 million in term life insurance as well as critical illness, disability income, and accidental death & dismemberment insurance.

RBC Life Insurance Riders & Features

Canadians can further customize RBC insurance policies with various supplemental riders:

  • Accidental Death – Extra payout if death is accidental
  • Disability Waiver – Premiums waived if disabled
  • Child Term Rider – Coverage for children
  • Term Riders – Add spouse or family member coverage

RBC also offers unique features like the Living Benefits rider to accelerate the death benefit if terminally ill.

With this extensive range of options, RBC gives Canadians diverse solutions for life insurance and risk protection at every stage of life. Bundling various products provides comprehensive coverage.

Key Takeaway: RBC offers an extensive suite of term, permanent, and group life insurance options that Canadians can customize with helpful riders for added protection.

What Does RBC Life Insurance Cost for Canadians?

What Does RBC Life Insurance Cost for Canadians
What Does RBC Life Insurance Cost for Canadians

The cost of RBC life insurance depends on several factors that the insurer uses to assess and price risk. This includes the standard criteria of age, gender, health/lifestyle, coverage amount, and length of the policy term.

Here are some sample monthly rates for healthy, non-smoking Canadians:

RBC Term Life Insurance

$500,000 Coverage, 20-year Term

AgeMaleFemale
25$32.18$22.86
35$32.63$24.26
45$75.42$53.37
55$237.69$166.14

*Rates as of July 2023, age 25-55, $500,000 coverage, 20-year term

RBC term life premiums are quite affordable, especially for younger individuals in their 20s and 30s who are securing initial protection. Their pricing is competitively benchmarked against other major Canadian life insurance companies.

RBC Permanent Life Insurance

$500,000 Participating Whole Life

AgeMaleFemale
25$549.86$497.43
35$644.45$579.06
45$860.77$777.14
55$1,201.71$1,081.43

*Rates as of July 2023, age 25-55, $500,000 coverage

Pricing for permanent cash value policies understandably trends higher given the lifelong coverage and account value growth components. RBC prices these competitively as well in the Canadian insurance market.

There are often opportunities to save on RBC life insurance premiums through:

  • Preferred health discounts
  • Couples and multi-policy discounts
  • Group employee plans with employer-paid premiums
  • Optimizing term length and coverage amount

Canadians should always compare RBC life insurance quotes to those of other insurers to confirm they are getting the best rates for their situation. Independent advisors can provide an unbiased assessment.

Key Takeaway: RBC life insurance pricing is competitive for both term and permanent policies. Compare quotes to maximize savings.

What Are Pros and Cons of RBC Life Insurance for Canadians?

Pros and Cons of RBC Life Insurance for Canadians
Pros and Cons of RBC Life Insurance for Canadians

RBC life insurance has several advantages that make it an attractive option for coverage:

Pros

  • A comprehensive suite of policies and riders
  • Ability to bundle multiple insurance products
  • Strong financial backing of a top Canadian bank
  • Streamlined underwriting and customer experience
  • Competitive pricing across most demographics
  • Excellent customer service reported by many clients
  • Canadian-based insurer focused on the domestic market

However, there are some potential drawbacks to consider:

Cons

  • Mixed customer service reviews on third-party sites
  • Limited plan variety compared to some other insurers
  • Term life policies lack a return of premium feature
  • Permanent policies have complex fee structures
  • Older ages may find better rates with smaller insurers

Overall, RBC offers very solid life insurance products for Canadians looking for coverage from a reputable financial institution. The advantages appear to outweigh the negatives for most policyholders.

Key Takeaway: RBC Insurance has competitive pricing and benefits backed by a top Canadian bank, but read customer feedback and compare costs.

What Do Independent RBC Life Insurance Reviews Say?

Independent customer review platforms like Google and Insureye can provide helpful insight into policyholders’ experiences with RBC Insurance. However, it is important to note that online reviews disproportionately represent unhappy customers who take time to vent their frustrations compared to satisfied clients.

With that said, here are some themes we noted from RBC insurance reviews:

Positive Feedback

  • Smooth onboarding and underwriting process
  • Competitive pricing and premiums
  • RBC advisors are knowledgeable and helpful
  • Strong financial backing provides peace of mind
  • Good value from bundled policies and discounts

Negative Feedback

  • Long wait times to speak with customer service
  • Difficulties cancelling policies or making changes
  • Automated unreasonable premium increase at renewal
  • Claim payments slower than expected

While there certainly seem to be areas RBC could improve around renewal notices and claim processing timeliness, the majority of reviews indicate positive experiences overall. No insurer is perfect, so weigh this feedback as part of your research.

Key Takeaway: Independent RBC life insurance reviews cite competitive pricing and helpful advisors as advantages but long service delays as potential drawbacks.

Who Is Eligible for RBC Life Insurance?

RBC life insurance policies are available to:

  • Canadian citizens or permanent residents
  • Wide age ranges depending on product – as young as 18 up to 85
  • Maximum coverage up to $25 million for high-net-worth individuals

For permanent cash value life insurance and higher coverage amounts, RBC will require a medical exam and health questionnaire to evaluate eligibility. However, simplified issue term life insurance up to $1 million has no exam.

Certain medical conditions, high-risk occupations, or hazardous hobbies may be excluded, or premiums may be increased. RBC may decline applicants deemed to be at too high risk.

Key Takeaway: RBC life insurance is available to most Canadians of a wide range of ages, especially those in good health. Certain factors can lead to higher rates or ineligibility.

How Canadians Can Save on RBC Life Insurance

There are several strategies Canadians can use to lower costs for RBC life insurance:

  • Compare quotes from a variety of top insurers before applying
  • Optimize the policy term length and coverage amount
  • Consider bundled policies or multi-life coverage for discounts
  • Maintain a healthy lifestyle and aim for preferred health status
  • Lock in rates at a younger age when premiums are lower
  • Pay annually or via payroll deduction to save on fees
  • Inquire about special pricing promotions, if available

RBC also offers a Living Benefit Rider that provides an accelerated death benefit payout in the case of a terminal illness. This can help offset expensive end-of-life health costs.

Working with an independent advisor can help you find the most cost-effective RBC life insurance product and strategy. They shop the competitive marketplace on your behalf.

Key Takeaway: Compare RBC quotes to other insurers, optimize policy parameters, and inquire about bundling discounts to maximize savings on coverage.

How Do Canadians File an RBC Life Insurance Claim?

Making a claim is often the true test of an insurer’s customer service. Here is an overview of the RBC life insurance claims process:

  • Call RBC Insurance as soon as possible after the death
  • Provide copies of the death certificate and policy documents
  • Submit a Statement of Claim form with beneficiary information
  • Send additional medical records if required
  • RBC will validate claims documentation and policy details
  • Once approved, the death benefit is paid out to named beneficiaries

Many reviewers report professional handling and reasonably quick turnaround – between 1 week to a month for most straightforward claims. High face amounts above $1 million or complex cases may require closer review.

For customer support, RBC provides telephone access during business hours. They also have an online customer portal for basic policy management. Live chat options are limited, so the phone is the best channel for direct inquiries.

Key Takeaway: RBC life insurance claims are paid within 1-4 weeks upon submitting documentation. Phone support meets basic needs, but live chat access is limited.

Is RBC Life Insurance a Good Choice for Canadians?

So, should Canadians consider RBC Insurance for their life coverage needs?

The Verdict: In most cases, yes.

Here are some instances where choosing RBC life insurance could be a good move:

  • You want the backing of a reputable major Canadian bank
  • Seeking competitive rates across multiple policy types
  • Appreciate the ability to bundle several insurance products
  • Need a customized term length beyond the typical 10/20/30 years
  • Looking for dividends and cash accumulation from a participating whole life policy

There are also some scenarios where other insurers may better serve specific niches:

  • Canadians with complex medical histories or hard-to-insure risks
  • Older ages with more price sensitivity
  • Those requiring very customized no exam policies

Overall, RBC Life Insurance provides a solid combination of pricing, features, and financial stability from a top Canadian brand. It’s certainly a strong contender for coverage. Comparing quotes can determine if they are the most affordable option for your situation.

Key Takeaway: RBC life insurance is an excellent choice for many Canadians needing coverage thanks to competitive pricing, strong brand reputation, and variety of policy options.

Next Steps: How to Get Expert Help Comparing RBC Life Insurance

We hope this extensive 3,000+ word guide has provided Canadians with helpful insights on RBC life insurance products, pricing, reviews, eligibility, claims, and overall value.

The next step is to speak with an advisor to get quotes and personalized policy recommendations for your specific coverage needs.

As Canada’s leading life insurance advisor, LifeBuzz.ca partners with top insurers, including RBC Insurance. Our licensed experts work on your behalf to compare quotes across providers and find you the most suitable and affordable policy for your family.

Contact us today to get started with expert guidance and support. We’re here to provide Canadians with the knowledge needed to make confident insurance decisions and protect financial futures.

Frequently Asked Questions

What is the maximum payout for RBC life insurance?

RBC policies can have death benefits up to $25 million for high net worth individuals needing substantial coverage. Their term, whole life, and universal life policies are flexible in coverage amount.

Where can I buy RBC life insurance?

You can purchase RBC life insurance directly through an RBC advisor, broker, or online. Independent brokers like LifeBuzz can help you compare RBC to other top insurers.

When should I buy RBC life insurance?

It's best to buy life insurance when you are young and healthy, as premiums rise with age. Term life is well-suited for parents with newborns, homeowners with a mortgage, or those with other financial dependents.

Do RBC life insurance rates go up?

RBC term life premiums are guaranteed level for the initial 10-40 year term length. Rates will increase if you renew the policy after the term expires. Permanent policy rates are fixed.

Can RBC life insurance be cancelled?

RBC life insurance policies can be cancelled within the free look period, typically 10-30 days. After that, the policy can still be cancelled but there may be surrender charges.

Is RBC life insurance only for RBC clients?

No, RBC life insurance is available to all Canadian residents who meet eligibility criteria, regardless of whether you bank with RBC. You do not need to be an existing RBC client.

Can I manage my RBC life policy online?

Yes, through the RBC insurance customer portal you can access your policy documents, update personal details, change beneficiaries, make payments, and manage your RBC life insurance online.

What is the RBC life insurance cancellation policy?

RBC life insurance can only be cancelled with no fees during the initial 10-30 day free look period after purchasing coverage. After this period, surrender charges may apply to cancellations.

Does RBC sell mortgage life insurance?

Yes, RBC offers mortgage life insurance designed to pay off all or part of your remaining mortgage balance in the event of your death. This coverage can give mortgage holders added peace of mind.

How long does it take to get an RBC life insurance policy?

It typically takes 2 to 6 weeks to get an RBC life insurance policy after applying. Quicker approval periods of 1 week are possible for simplified policies without medical requirements.

What are the payment options for RBC life insurance?

RBC life insurance can be paid annually, semi-annually, quarterly, or monthly via pre-authorized debit. Payroll deduction may also be available through an employer group plan.

Does RBC life insurance have a grace period?

Yes, RBC life insurance policies have a standard 30-day grace period after a missed premium payment before the policy lapses. Paying within this grace period keeps the policy active.

Can I get a copy of my RBC life insurance policy online?

Yes, RBC life insurance policy documents can be accessed through the RBC insurance customer portal after logging into your account.

What is the RBC life insurance beneficiary change form?

The RBC life insurance beneficiary change form allows you to request a change to the beneficiary designated to receive your policy's death benefit payout.

Do I need a health exam for RBC life insurance?

Health exams, blood work, and doctor exams may be required depending on your age, health, coverage amount, and type of RBC life insurance policy chosen. Simplified policies under $1M do not require exams.

Can I get RBC life insurance if I smoke?

Yes, RBC life insurance is available for smokers but premiums will be higher than those for non-smokers due to increased health risks. All smoking history and lifestyle details must be disclosed.

Does RBC life insurance cover COVID?

Yes, RBC life insurance policies cover death from COVID-19 or any other cause, with no exclusions. Certain policy riders also cover hospitalization, disability, or critical illness related to COVID-19.

What’s the phone number for RBC life insurance?

The RBC life insurance contact number is 1-888-893-5848. You can call this number weekdays from 8am to 8pm ET to speak with an RBC life insurance advisor about products, quotes, or any questions.

How can I lower my RBC life insurance premium?

Bundling multiple RBC policies, maintaining good health, comparing insurers' rates, opting for longer terms, and buying at younger ages are some ways to potentially lower RBC life insurance costs.

Article Sources:

For a deeper look at our dedication to accuracy, transparency, and independence, please refer to the Lifebuzz.ca Editorial Policy. We take great pride in being Canada’s most trusted life insurance news source:

  1. RBC (Royal Bank of Canada) Life Insurance Review 2024 – https://www.policyme.com/
  2. Is RBC Life Insurance the best in 2024? Review – https://hellosafe.ca/
  3. RBC Life Insurance Review – Updated 2024 – https://www.policyadvisor.com/
  4. RBC Life Insurance Review 2024 – https://www.dundaslife.com/
Rate this post

Written by Ben Nguyen

Ben Nguyen is an award-winning insurance expert and industry veteran with over 20 years of experience. He is the chairman and director of IDC Insurance Direct Canada Inc., one of Canada's leading online insurance brokerages.

Ben is renowned for his extensive knowledge of life, health, disability, and travel insurance products. He is the prolific author of over 1,000 educational articles published on LifeBuzz, BestInsuranceOnline, and InsuranceDirectCanada. His articles provide Canadians with advice on making smart insurance decisions.

With a Bachelor's degree in Actuarial Science and a Fellow of the Canadian Institute of Actuaries (FCIA) designation, Ben is frequently interviewed by media as an insurance industry spokesperson.

He has received numerous honors including the Insurance Council of Canada’s Pivotal Leadership Award, the Canadian Insurance Hall of Fame induction, and the President’s Medal from the Canadian Institute of Actuaries.

Ben continues to shape the vision and strategy of IDC Insurance Direct as chairman. He is dedicated to advancing the insurance industry through his insightful leadership.

Leave a Reply

Your email address will not be published. Required fields are marked *

GIPHY App Key not set. Please check settings

    Empire Life Insurance Review in Canada: A Deep Dive for Canadians

    Empire Life Insurance Review in Canada: A Deep Dive for Canadians

    Foresters Life Insurance Canada Review 2024- Is It the Right Choice for You

    Foresters Life Insurance Canada Review 2024: Is It the Right Choice for You?