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- RBC Insurance stands out for flexibility, offering customizable term lengths from 10 to 40 years along with a layered coverage option under one policy
- BMO Insurance is a strong choice for buyers who prefer simple fixed-term options such as 10, 15, 20, 25, and 30 years, along with a term exchange option
- Both insurers offer renewable and convertible term life insurance, but RBC earns a slight edge overall for long-term planning flexibility
Royal Bank of Canada (RBC) and Bank of Montreal (BMO) both offer term life insurance designed to provide financial protection for your loved ones. Their policies share several core features, including level premiums during the term, the option to renew coverage at the end of the term, and the ability to convert the policy to permanent life insurance without new medical evidence.
However, the two insurers differ in areas such as term length flexibility, and coverage structure. Here’s a quick verdict on RBC and BMO before we explore the details.
Quick verdict
Choose RBC insurance if:
- You want to pick any term from 10 to 40 years to match milestones (e.g., kids’ graduation, loan payoff).
- You want a lower starting coverage amount with policies starting at $50,000.
Choose BMO insurance if:
- You prefer ready-made terms (10/15/20/25/30 years) that line up with a mortgage or other fixed timelines.
- You prioritize complimentary loss support services for beneficiaries
Why BMO insurance vs. RBC insurance is a common comparison
When Canadians start looking at life insurance, BMO insurance and RBC insurance often end up on the shortlist, and for good reason. Both offer:
- Competitively priced term life insurance
- Renewable and convertible term policies
- Backing from well-capitalized, established institutions
Naturally, buyers want to know what actually sets them apart if both are strong and reputable. The answer usually comes down to structure and flexibility. Think of RBC as “build-your-own term” and BMO as “pre-set terms.” For someone trying to match coverage precisely to a mortgage or long-term financial goal, that difference matters.
RBC insurance vs. BMO insurance at a glance
Both RBC and BMO are part of Canada’s “Big Five” banks, with decades of financial strength and nationwide presence. Here’s a quick snapshot of how the two companies compare:
| Parameter | RBC Insurance | BMO Insurance |
| Founded | 1864 (Royal Bank of Canada); RBC Life Insurance in 1996 | 1817 (Bank of Montreal); BMO Life Insurance formed later |
| Headquarters | Toronto, Ontario | Toronto, Ontario |
| Total assets (insurer) | $28.6B | $20.1B |
| AM Best rating | A | A |
| LICAT ratio | 135% | 130% |
About RBC term life insurance
RBC Insurance offers YourTerm Life Insurance, a term life insurance plan designed to provide financial protection for a set period of time. This plan allows policyholders to choose a custom coverage term between 10 and 40 years, helping match insurance coverage with financial responsibilities such as mortgages, debts, or income replacement needs.
Coverage amounts typically range from $50,000 up to $25 million, depending on eligibility and underwriting. At the end of the term, policies can be renewed at a new premium without medical evidence, and policyholders may also have the option to convert their term policy to permanent life insurance if their coverage needs change.
RBC YourTerm Life Insurance also offers layered coverage options, allowing policyholders to combine multiple term lengths under one policy to better match different financial obligations over time. For example, you can add a shorter term for your mortgage and a longer term for income replacement under one policy so total coverage tapers over time.
Key features of RBC term life insurance
1. Flexible term options: RBC insurance allows policyholders to choose any term length between 10 and 40 years, offering more flexibility than insurers that only provide fixed term options.
2. Wide coverage range: Policies typically offer coverage amounts from $50,000 up to $25 million, depending on the applicant’s eligibility.
3. Renewable coverage: At the end of the selected term, policies can generally be renewed without medical evidence up to age 85, though premiums increase based on age.
4. Conversion to permanent life insurance: RBC insurance allows policyholders to convert their term policy to permanent life insurance without medical evidence, typically up to age 71.
5. Layered coverage option: RBC insurance offers layering, allowing policyholders to combine multiple term policies with different durations under one plan.
6. Optional riders: RBC term plan includes optional riders, such as children’s term, accidental death, disability waiver, and guaranteed insurability.
Pros and cons of RBC term life insurance
| Pros | Cons |
| Allows flexible term lengths between 10 and 40 years | Does not include a built-in living benefit |
| Offers layered coverage options | No multi-life coverage feature |
| Can be renewed without medical evidence | |
| Can be converted to permanent life insurance without medical evidence |
About BMO term life insurance
BMO insurance offers several term options (typically 10, 15, 20, 25, and 30 years) allowing individuals to choose coverage that aligns with their financial responsibilities and life stage. With this plan, policyholders receive coverage for a set term while paying premiums that typically remain level throughout that term.
Coverage amounts generally range from $100,000 up to $30 million, depending on eligibility and underwriting. If the insured person passes away during the policy period, the insurer pays a tax-free lump-sum death benefit to the beneficiaries, helping them cover expenses such as mortgages, debts, or everyday living costs.
Premiums typically remain level throughout the selected term, and policies can be converted to permanent life insurance without new medical evidence. The terms 10/15/20 are renewable, but T25 and and T30 are not renewable. BMO also offers different policy structures, including single life, combined life, and joint last-to-die coverage, allowing individuals, couples, or families to customize protection based on their needs.
Key features of BMO term life insurance
1. Multiple term options: BMO insurance offers fixed coverage terms of 10, 15, 20, 25, and 30 years, allowing policyholders to choose a duration that matches their financial obligations such as a mortgage or family expenses.
2. Wide coverage range: Policies generally provide coverage from $100,000 up to $30 million, depending on eligibility and underwriting.
3. Renewable coverage: At the end of the selected term, T10/15/20 policies can be renewed without additional medical evidence, but T25 and and T30 are not renewable.
4. Conversion to permanent insurance: BMO insurance allows policyholders to convert their term life policy to a permanent life insurance plan without new medical underwriting.
5. Term exchange option: The Term 10 or Term 15 coverage to be exchanged for a longer term (such as Term 20, 25, or 30) during the early years of the policy without additional underwriting.
6. Support services for beneficiaries: BMO policies may include complimentary support services for beneficiaries, such as assistance with estate-related tasks and grief support resources.
Pros and cons of BMO term life insurance
| Pros | Cons |
| Offers multiple fixed term options such as 10, 15, 20, 25, and 30 years | Term lengths are fixed, so there is less flexibility |
| Provides high coverage limits ranging from about $100,000 up to $30 million | T25 and and T30 plans are not renewable |
| Term 10 or Term 15 policies to be exchanged for longer terms |
RBC vs BMO term life comparison
| Category | RBC Insurance | BMO Insurance |
| Flagship term product | RBC YourTerm Life Insurance | BMO Term Life (Term 10/15/20/25/30) |
| Term length options | Any term 10-40 years (custom) | 10, 15, 20, 25, 30 years (fixed) |
| Coverage range | $50,000 – $25M | $100,000 – $30M |
| Renewability | Without medical evidence, up to age 85 | Term 10/15/20 renewable up to age 85; Term 25 and Term 30 are NOT renewable |
| Convertibility | To permanent up to age 71, no medical evidence | To permanent before age 71, no medical evidence |
| Coverage structures | Single life and joint first-to-die | Single, combined life, joint last-to-die |
| Term exchange option | Exchange option is available between term length of 10 and 39 years | T10/T15 → 20/25/30 in early years, no medical evidence |
| Riders available | Children’s term, Accidental death, Total disability waiver of premium, Guaranteed insurability | Critical illness, Accidental death, Child life, Waiver of premium |
Our Ratings
Who should choose RBC Insurance?
RBC term life insurance may be a better choice for buyers who value flexibility in term length and customizable coverage structures. Choose RBC if:
- You want highly flexible term lengths: RBC allows you to select any coverage term between 10 and 40 years, which can help match insurance precisely with financial obligations such as mortgages, business loans, or education funding timelines.
- You want a lower minimum coverage amount: RBC policies can start from $50,000, which may make them suitable for buyers who want smaller coverage amounts or are purchasing their first life insurance policy.
- You want the ability to layer coverage: RBC YourTerm allows layered coverage structures, enabling policyholders to combine multiple term durations within one policy to align coverage with changing financial responsibilities.
Who should choose BMO insurance?
BMO term life insurance may be a good fit for buyers who prefer straightforward coverage without needing extensive customization or highly flexible term structures. Choose BMO if:
- You prefer simple, fixed-term options: If you are comfortable choosing from structured terms such as 10, 15, 20, 25, or 30 years, BMO’s fixed-term structure can make the decision process simpler.
- You value additional support for your beneficiaries: BMO policies may include complimentary support services for beneficiaries, such as guidance with estate-related tasks and access to grief support resources after a claim.
- You want competitive pricing: BMO is often more affordable than highly customizable insurers. On top of competitive pricing, their plans include most of the standard features Canadians typically expect from a life insurance policy.
Final Verdict: RBC or BMO
Best overall: RBC insurance
RBC earns the top overall spot because it balances affordability, flexibility, and long-term usefulness. Buyers can choose any term from 10 to 40 years, start with lower coverage amounts, and use layered coverage to match changing financial needs over time.
Best for price: BMO insurance
BMO can be an excellent value for buyers who want straightforward protection at competitive rates. Its standard fixed-term structure often appeals to people looking for simple and cost-effective coverage without extra complexity.
Best for high coverage: BMO insurance
BMO stands out for applicants needing larger policies, with coverage limits reaching up to $30 million. This can make it a strong option for business owners, high-income earners, or families with major financial obligations.
Best for customization: RBC insurance
RBC is the clear winner for customization because it allows buyers to select any term length between 10 and 40 years. This makes it easier to align coverage with milestones such as mortgage payoff dates, children becoming independent, or retirement planning.
Best for layered coverage: RBC insurance
RBC leads for layering because multiple term lengths can be combined under one policy. For example, buyers can carry a shorter term for a mortgage and a longer term for family income protection, allowing coverage to reduce naturally as responsibilities change.
Frequently asked questions
Is RBC better than BMO for term life insurance?
RBC may be better for buyers who want flexible term lengths between 10 and 40 years and the ability to structure coverage with layered terms. BMO may be a better option for those who prefer simple, pre-set term options such as 10, 15, 20, 25, or 30 years.
What is the minimum coverage amount for RBC vs. BMO term life insurance?
RBC term life insurance can start from $50,000, while BMO term life insurance typically starts from $100,000.
Can RBC and BMO term life insurance be converted to permanent insurance?
Yes. Both RBC and BMO allow policyholders to convert their term life insurance policy to permanent life insurance without new medical evidence, within the eligible conversion period.
Are RBC and BMO reliable life insurance companies?
Yes. Both insurers are backed by major Canadian banks and hold strong financial ratings, indicating a strong ability to meet their policyholder obligations.
How much term life insurance coverage do I need?
The amount of coverage depends on your income, financial obligations, debts, and family needs. A common guideline is to have coverage worth 5 to 7 times your annual income, though individual needs may vary.
RBC Insurance and BMO Insurance are two trusted Canadian insurers offering term life insurance designed to provide financial protection. Both offer level premiums during the term, renewal options, and the ability to convert coverage into permanent insurance without new medical evidence. RBC’s YourTerm Life Insurance is ideal for buyers who want greater flexibility, since it allows any term length from 10 to 40 years and layered coverage structures. BMO’s Term Life Insurance appeals more to those who prefer structured term choices with a term exchange option.
