Royal Bank RBC Life Insurance
While most known for their banking products, RBC also offers term and permanent life insurance products with flexible term options. Simplified products include coverage up to $1 million, while fully underwritten policies can cover up to $25 million. Additional products include non-medical life insurance, critical illness, disability, home, auto, travel insurance, and investment products.
RBC Insurance is the insurance arm of the Royal Bank of Canada, the largest bank in Canada by market capitalization. RBC Insurance was created in the 1960s and built up through a series of acquisitions: Ontario Loan and Debenture Company (formerly Ontario Savings and Investment Society) in 1968, Voyageur Insurance Company in 1993, Westbury Canadian Insurance Company in 1996, the Mutual of Omaha’s Canadian operations in 1998, and Prudential Canada in 2000.
As of 2021, RBC Insurance is the largest Canadian bank-owned insurance company, with over 2,500 employees.
Besides insurance and Canadian banking, Royal Bank is also an international financial institution, with offices in the USA, Caribbean, Asia, and elsewhere around the world.
Term Life Insurance
Term life insurance is an insurance policy that lasts for a specific period of time. Your beneficiaries are entitled to receive a tax-free death benefit if you die within the term of the policy. Once that term expires, you can cancel your policy. However, many insurance providers will automatically renew your policy or have options to convert your coverage into permanent insurance.
RBC offers two different types of term life insurance policies:
- RBC Simplified Term Life Insurance. A simplified insurance policy which may not require a medical exam for up to $1 million in coverage. Available in customized term lengths from 10 to 40 years and convertible to RBC’s other types of coverage.
- YourTerm Life Insurance. From $1 million to $25 million in coverage available in customized term lengths from 10 to 40 years. Convertible to RBC’s other types of coverage. Term 10 is exchangeable for a Term 15, 20, or 30 policy without the need for repeated medical underwriting.
For more information and an in-depth look at their coverage, read our RBC Insurance Term Insurance Review.
Permanent Life Insurance
Whole life insurance is a form of permanent life insurance that provides you with coverage from the day the policy is settled until the day you die. As long as you pay premiums into the policy, the coverage never expires.
RBC offers two different whole life policies:
- RBC Guaranteed Acceptance Life Insurance. $5,000 to $40,000 in coverage is available without the need for a medical exam or questionnaire. You can apply for coverage between the ages of 40 and 75, and coverage is for life.
- Term 100 Life Insurance. Though the term is in the name, this policy provides lifetime coverage, though you only pay premiums until age 100. $50,000 and above is available for the benefit amount; a medical exam may be required.
RBC also offers a participating permanent insurance policy called RBC Growth Insurance with multiple options for how one can access the dividends from the policy.
Universal Life Insurance
Universal life insurance is like whole life insurance, except there is a self-directed long term investment component: your insurer gives you options for investing the cash value of your policy.
RBC Insurance offers the RBC Universal Life Insurance Plan. The policy includes lifetime coverage, many options for choosing how your cash value is invested, and a choice between level protection or an increasing death benefit. The increasing death benefit is great for those looking for a tax-advantaged method to access retirement funds when they have maxed out RRSPs and TFSAs.
Critical Illness Insurance
Critical illness insurance is a living benefit insurance policy that pays out a tax-free lump sum if you develop a specified illness, health event, or undergo treatment while under its coverage, after a minimum of 30 days from when you are first diagnosed (90 days for cancer). This coverage is available for a period of time also known as term length, and you determine it when purchasing the policy.
RBC combines their critical illness offerings with disability coverage under the RBC Insurance Health Insurance moniker alongside Hospital Insurance.
RBC offers two critical illness policies:
- Critical Illness Recovery Plan. This plan offers $25,000 to $2 million in coverage and includes more than 30 serious illnesses and conditions. It has level premiums to age 75 for the non-cancellable option, and level premiums to age 65 or 75 (guaranteed renewable).
- Critical Illness Insurance Plan. This plan offers coverage in amounts of $10,000, $25,000, $50,000, and $75,000 and includes the most commonly documented illnesses in Canada – namely cancer, heart attack and stroke.
Both policies are available in 10-year terms.
For more information and an in-depth look at their critical illness coverage, read our RBC Insurance Critical Illness Insurance Review.
Disability insurance (or income protection insurance) is a policy that offers you protection against loss of income. It replaces a substantial portion of your paycheque if you become disabled until you return to good health and resume work (or the end of your coverage period).
RBC combines their disability offerings with critical illness coverage under the RBC Insurance Health Insurance moniker alongside Hospital Insurance.
RBC offers seven different disability insurance policies:
- RBC Simplified Disability Insurance. For self-employed and hard-to-insure individuals.
- The Professional Series. For high-earning business owners, doctors, lawyers, and other professionals.
- The Foundation Series. For small business owners, tradespeople, and skilled labourers.
- The Bridge Series. Similar to the Foundation series, but flexible, cost-saving options.
- Quantum. For professionals looking to protect the income that their highly-specialized skills make them.
- The Fundamental Series. Injury-only coverage for self-employed, contract, and seasonal workers.
Retirement Protector. For those looking to protect the ability to continue saving for retirement due to the temporary setback of an injury.
Accidental Death and Dismemberment Insurance
Accidental death and dismemberment insurance (AD&D insurance) is a specialized form of life insurance whereby the insurer agrees to pay a sum of money to the insured or the insured’s dependents, should the insured die, or suffer a bodily injury such as lose a limb, become paralyzed, or lose their hearing, speech or sight – all due to an accident.
RBC Insurance offers AD&D insurance policies they call Personal Accident Insurance. This policy is only available to existing RBC Insurance or Banking customers. The coverage provides guaranteed acceptance for amounts from $50,000 to $250,000 between the ages of 18 and 69. One must keep in mind that this coverage covers accidents, and is not applicable if the person insured dies of natural causes like illnesses or diseases. It is an option for those working in high-risk occupations or those denied other types of life insurance coverage.
RBC Insurance offers home insurance policies for many types of dwellings, covering damages to the home and/or belongings, living expenses while your home is repaired, and liability claims for accidental damage or harm to others. RBC Insurance Homeowners Insurance is available for free-hold homeowners, condo owners, tenants, and seasonal and revenue properties.
RBC Insurance offers car insurance policies for a number of different vehicle types. RBC Insurance Car Insurance is their traditional auto insurance – including mandatory liability insurance in addition to optional coverage like theft and damage. As well, RBC Insurance has coverage options for recreational vehicles (ATVs, boats, motorhomes, classic and vintage cars, motorcycles, snowmobiles, trailers, etc) through their Leisure and Lifestyle Insurance offering.
RBC Insurance offers multi policy discounts if you are insuring more than one vehicle.
RBC Insurance Travel Insurance has options for travellers to and from Canada:
- Travel Medical for health emergencies that come up on your travels
- Trip Cancellation and Interruption for situations where you need alter your plans, lose luggage, etc
- Visitors Travel Insurance for those visiting, immigrating to, or studying in Canada from abroad.
These options can be purchased separately or bundled together as a travel package for a discount on the premiums.
Investment Products and Other Financial Products
While RBC Insurance itself does not offer direct investment plans or other financial products, parent-company RBC Royal Bank is known throughout Canada for its vast profile of financial products and services, including chequing and savings (RRSPs, TFSAs, etc) accounts, credit cards, loans, mortgage, lines of credit, business loans, and direct investments and portfolio monitoring.
The information and views provided herein is for general informational purposes only and should not be considered legal or financial advice.