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RBC Term Life Insurance Review

    It is hard to think about the need for life insurance coverage; however, whether you are married and have dependents or not, it is needs to be addressed. You want to ensure that your heirs can cover the costs of your funeral and remain financially stable in the aftermath of your death. RBC Insurance offers a plethora of life insurance products to suit the needs of their clients. One example is their term life insurance products. These cover customers for 10 to 40-year terms. Coverage may be renewed automatically after the first term ends; however, premiums may change.

    The premiums on a policy go towards coverage only. The life term policy does not create cash value, but policies do allow for customers to transfer them into universal or permanent life insurance plans at any point before they hit 71 years of age. No medical exams or health questions are usually required for this.

    The flexibility of a term life insurance policy with RBC is undeniable, thanks to the 10 to 40 year terms; however, another benefit is that, should you pass away during this time, the beneficiaries on the policy receive the funds, tax-free. Coverage and fixed premiums are also promised throughout the entire term you choose. Renewals can be done automatically, or at the end of the term. Premiums also tend to be more affordable under term life insurance, which can ease financial burdens for growing families looking for the stability life insurance can offer but working within a budget. 

    RBC provides two types of term life insurance outlined below:

    RBC Simplified

    The RBC Simplified Term Life Insurance product provides the convenience, flexibility, and low-cost coverage that is linked to this type of life insurance, and you can apply for it online. If your life insurance coverage requirements are $1,000,000 or less, this might be a viable option.

    Online quotes can be provided in about 15 minutes or so, and some eligible clients can receive coverage without having to undergo a medical exam. Policies range from $50,000 to $1,000,000, and premiums can start as low as $12.67 monthly. 

    One requirement is that you are a Canadian citizen, or permanent or landed immigrant who has been in the country for over a year. Another thing to consider is your age. Insurance term periods that are 10 to 15 years can be taken out by individuals that are between the ages of 18 to 70; however, terms periods between 16 to 40 years require individuals to meet the maximum issue age of 85 years old, minus the lengthen of the term (i.e. if you choose a term of 25 years, you would have to be a maximum of 60 years of age).

    Your policy premiums are guaranteed to remain the same throughout the length of your term. You can renew your policy once the term finishes, and while the premiums will change once renewed, you are guaranteed that renewed price for the entire renewed term. You can pay each month via pre-authorized debit or purchase yearly online with a credit card.

    YourTerm Life Insurance

    This term life insurance is for those that need over $1,000,000; however, it still offers the flexibility and convenience that RBC Simplified does. Available coverage is between $1,00,001 to $25,000,000. You still get to choose your term, anywhere between 10 to 40 years, and coverage and premiums remain unchanged throughout your term. Your estate or beneficiary receives a tax-free benefit, and all the requirements stated for RBC Simplified mirrors eligibility for YourTerm policies, as well. 

    With that said, coverage options are slightly varied from RBC Simplified, due to the amount of the premiums. There are more options to choose from. Under the “Joint First-to-Die” option, you have a choice to take out a policy that covers two family members. The funds are payable when the first person within the policy dies, or the survivor can covert the YourTerm into a permanent plan. “YourTerm Rider” is another option that can offer added coverage for you, as well as another person (i.e. spouse), and YourTerm also has a “Children’s Term Rider” option, where legally adopted or biological children gain access to coverage. They also offer an “Accidental Death Benefit Rider”:  additional benefits are paid due to an accident that causes death. They also offer a “Total Disability Waiver of Premium Benefit Rider” that promises no premium payments and policy fees after six consecutive months of being totally disabled. 

    Much like RBC Simplified, your premiums stay the same for the entire term and only change if renewed. Payments are conducted monthly viapre-authorized debit, or you can pay them annually with a credit card.

    View for a more in-depth look at RBC’s term life insurance policies.

    Christopher - BSc, MBA

    With over two decades of combined Big 5 Banking and Agency experience, Christopher launched Underbanked® to cut through the noise and complexity of financial information. Christopher has an MBA degree from McMaster University and BSc. from Western University in Canada.

    Christopher - BSc, MBA

    Christopher - BSc, MBA

    With over two decades of combined Big 5 Banking and Agency experience, Christopher launched Underbanked® to cut through the noise and complexity of financial information. Christopher has an MBA degree from McMaster University and BSc. from Western University in Canada.