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- Canada Life’s flagship product is My Term™ Life Insurance, with term lengths ranging from 5 to 50 years, while RBC offers YourTerm Life Insurance with customizable term durations between 10 and 40 years
- Canada Life is a good choice for those who want longer-term coverage, higher coverage amount, stronger customization through riders, and more conversion options
- RBC Insurance becomes a better choice for those who want flexible but simple term selection (10-40 years), lower entry coverage starting around $50,000
Choosing between RBC Insurance and Canada Life Insurance is not just about selecting a term life insurance provider; it is about understanding two different approaches to protection planning.
Both insurers are financially strong and widely trusted in Canada. However, their product design differs significantly. Understanding these differences is critical before choosing a policy because the structure you select today can impact affordability, flexibility, and long-term usability of your insurance strategy.
Quick verdict
Choose RBC if:
- You want to pick any term length (10 to 40 years)
- You are a first-time buyer and want a lower coverage amount of $50,000
Choose Canada Life if:
- You want a longer term of up to 50 years
- You want higher coverage limits
Why RBC vs. Canada Life is a common comparison
Canada Life and RBC Life Insurance are frequently compared because both target mainstream Canadian insurance buyers, but approach product design very differently.
Canada Life is one of Canada’s oldest insurers, known for stability and long-term planning tools. RBC Insurance, backed by one of Canada’s largest financial institutions, focuses on modern insurance design with flexibility and customization. Both insurers offer conversion and renewability, but the way coverage is structured differs significantly.
Naturally, it becomes important to compare the two leading insurers in Canada, so that it becomes easier to pick the one that best aligns with your budget, coverage, flexibility needs, and more.
RBC vs. Canada Life at a glance
Before comparing product features in detail, it’s important to understand the overall positioning of both insurers in the Canadian market. While both Canada Life and RBC Insurance are well-established and financially strong, they operate with slightly different philosophies and distribution models when it comes to their term insurance plans.
Company snapshot: Canada Life vs. RBC
| Features | RBC Insurance | Canada Life |
| Founded | 1864 (Royal Bank of Canada); RBC Life Insurance Company founded in 1996 | 1847 |
| Headquarters | Toronto, Ontario | Toronto, Ontario |
| Total assets (insurer) | $28.6B | $461.2B |
| AM Best rating | A | A+ |
| LICAT Ratio | 135% | 130% |
About RBC term life insurance
RBC Insurance offers RBC YourTerm Life Insurance, a term life insurance plan designed to provide financial protection for a set period of time. Instead of restricting to a small set of fixed-term options, RBC YourTerm allows you to choose a custom coverage term between 10 and 40 years. This flexibility makes it easier to align your insurance coverage with real-life financial responsibilities such as mortgages, personal loans, education costs, or long-term income replacement needs.
Policyholders can select coverage amounts typically ranging from $50,000 up to $25 million, depending on eligibility and underwriting approval. This wide coverage range makes the product suitable for both individuals seeking basic protection and those with higher financial responsibilities.
Key features of RBC term life insurance
1. Flexible term length: RBC term life insurance typically offers flexible term lengths ranging from 10 to 40 years. This allows policyholders to choose a duration that aligns with their financial responsibilities, such as mortgages, income replacement, or long-term planning needs
2. Level premiums: Premiums remain fixed throughout the selected term, providing a stable and predictable cost structure. This makes it easier for policyholders to budget and plan their finances without worrying about premium increases during the term
3. Conversion option: The policy includes an option to convert to permanent life insurance without requiring a medical exam. This helps maintain long-term insurability and is especially beneficial if health conditions change over time
4. Renewability: Coverage can be renewed after the initial term without a medical exam, ensuring continued protection up to age 85. However, premiums will increase at renewal based on the policyholder’s age
5. Wide coverage range: RBC offers coverage amounts of up to $25 million, depending on the applicant’s eligibility. This makes the policy suitable for both basic coverage needs and more complex financial protection requirements
6. Optional benefits and riders: A range of optional riders is available to enhance coverage, including accidental death benefit rider, child term rider, disability waiver rider, guaranteed insurability benefit rider, and critical illness rider. These add-ons allow policyholders to customize their coverage based on personal, family, or business needs
7. Layered coverage: RBC offers layering, allowing policyholders to combine multiple term policies with different durations under one plan
Pros and cons of RBC term life insurance
| Pros | Cons |
| Very simple policy structure | Limited customization in terms of riders |
| Strong brand trust (RBC) | No wellness or reward programs |
| Easy application process | |
| Competitive pricing |
About Canada Life term life insurance
Canada Life offers term life insurance designed for individuals who want more than just basic protection. Their term insurance plans are structured to support long-term financial planning, especially for families, business owners, and individuals who expect their insurance needs to evolve over time.
Canada Life offers its term life insurance under products such as Canada Life My Term™, which is designed to evolve with your life circumstances rather than forcing you into a one-size-fits-all product. The My Term™, available in 5-50 year term lengths, allows policyholders to choose term lengths that closely match their financial goals and obligations. This flexibility lets you tailor your coverage to things like mortgage duration, family dependency periods, or business planning timelines without being restricted to rigid preset term buckets.
The ability to convert or customize with riders makes the Canada Life term insurance plan appealing to those who want insurance that can grow or shift as their financial and family landscapes evolve.
Key features of Canada Life term insurance
1. Level premium structure: Premiums remain fixed for the entire duration of the selected term, supporting long-term financial planning and helping policyholders manage their budgets effectively
2. Multiple-term options: Canada Life offers a wide range of term lengths, from 5 to 50 years. This flexibility allows policyholders to align their coverage with key financial milestones such as mortgage duration, child dependency periods, or retirement planning timelines
3. Conversion to permanent insurance: Policyholders have the option to convert their term policy into permanent life insurance without requiring medical evidence up to age 70. This feature supports long-term planning needs, including estate and legacy planning
4. Renewability: The policy can be renewed at the end of the term without a medical exam (up to age 85), ensuring continued coverage even if health conditions change. However, premiums will increase upon renewal based on the policyholder’s age
5. Optional benefits and riders: A variety of riders can be added to enhance coverage, including accidental death benefit rider, child term rider, disability waiver rider, guaranteed insurability benefit rider, and business value protection rider
6. Coverage options: Canada Life offers both single life and joint first-to-die coverage options. Joint first-to-die policies insure two individuals under one plan, making them suitable for couples or shared financial responsibilities
Pros and cons of Canada Life term insurance
| Pros | Cons |
| Higher coverage limits are available | Slightly more complex product structure |
| Reliable conversion options | Minimum coverage starts at $100,000 |
| Good customization options | |
| Strong financial backing |
RBC vs. Canada Life comparison
| Features | RBC Insurance | Canada Life |
| Flagship term product | RBC YourTerm Life Insurance | My Term™ Life Insurance |
| Term length options | Any term 10-40 years | 5 to 50 years |
| Coverage range | $50,000 – $25M | $100,000 – no strict maximum (special quoting above $25M) |
| Renewability | Without medical evidence, up to age 85 | Without medical evidence, up to age 85 |
| Convertibility | To permanent up to age 71, no medical evidence | To permanent up to age 70 |
| Coverage structures | Single life and joint first-to-die | Single, joint first-to-die (up to 2 insureds) |
| Term exchange option | Can be exchanged for a 15, 20, or 30-year term policy | Term-to-term conversion is possible ((new term ≥10 years longer) |
| Riders available |
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Our Ratings
Who should choose RBC?
RBC is a good choice for those who:
- Want flexibility in choosing standard term lengths: RBC Insurance allows you to choose from a range of term durations (10 to 40 years), making it easier to match coverage with specific financial obligations like a mortgage or income replacement period
- Are a first-time buyer: With coverage options starting from around $50,000, RBC is accessible for those just starting out with life insurance and looking for a smaller, more affordable policy
- Value the familiarity of a bank-backed insurer: As part of Royal Bank of Canada, RBC Insurance may appeal to those who prefer dealing with a well-known financial institution they may already bank with
Who should choose Canada Life?
Canada Life becomes a suitable choice for those who:
- Want to align coverage with long-term financial milestones: Canada Life’s My Term™ Life Insurance offers a broad range of term lengths (5-50 years), allowing you to match coverage with extended responsibilities such as raising children, long-term debt, or retirement planning
- Value conversion optionality for future planning: Canada Life allows you to convert your term policy into permanent life insurance without additional medical evidence (subject to eligibility conditions)
- Prefer customization through riders: You can enhance your base policy with life insurance riders such as accidental death benefit, child term rider, disability waiver, and guaranteed insurability options
- Want a policy that can evolve with your life stages: With flexible structuring and conversion features, Canada Life supports policyholders who expect their insurance needs to change over time, rather than remain static
Final Verdict: RBC or Canada Life
1. Best overall: Canada Life
Canada Life stands out overall due to its flexibility, competitive pricing, and strong customization options. It is well-suited for individuals who want coverage that can evolve alongside their financial responsibilities without significantly increasing costs.
2. Best for flexibility and customization: Canada Life
Canada Life offers more control over long-term policy design through varied term options, rider choices, and conversion flexibility. It works best for those who prefer a more planning-driven approach to insurance.
3. Best for simplicity and ease of purchase: RBC
RBC excels in simplicity, with a streamlined product structure and easy purchase process. It is particularly appealing for first-time buyers or those who want straightforward coverage without complexity.
4. Best for higher coverage limits: Canada Life
Canada Life is a stronger choice for individuals seeking higher coverage amounts. Its underwriting capacity and product structure make it better suited for those with larger protection needs, such as high-income earners or business owners.
5. Best for conversion and renewability: Tie
Both Canada Life and RBC provide solid conversion and renewability options, allowing policyholders to extend or transition coverage without additional medical underwriting.
Frequently asked questions
Which is better: Canada Life or RBC Insurance for term life insurance?
Canada Life is generally better suited for individuals who want long-term flexibility, stronger customization, and the ability to structure insurance around evolving financial goals such as family planning or estate needs.
Is Canada Life more expensive than RBC Insurance?
No, Canada Life is a more affordable option than RBC when it comes to a term life insurance policy. To get the most affordable quotes, you can get in touch with our advisors at PolicyAdvisor, who will help you compare and get the best possible rates for your term life insurance policy.
Can I convert both Canada Life and RBC Insurance term policies to permanent insurance?
Yes, both Canada Life and RBC Insurance offer conversion options that allow policyholders to switch their term life insurance into permanent life insurance without requiring new medical underwriting. This is an important feature for long-term planning because it protects your insurability even if your health changes over time. Conversion rules may vary depending on age limits and policy conditions, so it is important to understand the specific conversion window for each insurer.
Does Canada Life offer more flexibility than RBC Insurance?
Yes, Canada Life generally offers more flexibility compared to RBC Insurance, especially in terms of long-term planning, policy customization, and integration with financial strategies. It allows more structured decision-making around term selection, riders, and conversion planning. RBC Insurance focuses more on simplicity and structured protection, offering flexibility mainly through its custom term range and layered coverage design. Therefore, Canada Life is better for planning-heavy users, while RBC is better for straightforward needs.
What happens when my term life insurance expires with Canada Life or RBC Insurance?
When a term policy expires with either Canada Life or RBC Insurance, coverage typically ends unless you choose to renew or convert it. Both insurers allow renewal without requiring medical evidence, but premiums will increase based on your age at renewal. Alternatively, if you have a conversion option available, you can convert the policy into permanent life insurance. This ensures continued coverage, but it is usually more expensive than the original term policy.
Which insurer is better for families or long-term financial planning?
Canada Life is often considered better for families and long-term financial planning because it offers more customization, flexible term structuring, and stronger alignment with future financial needs like education planning, mortgage protection, or estate planning.
Canada Life and RBC Insurance both offer strong term life insurance solutions, but they differ in approach. Canada Life focuses on long-term planning with flexible term lengths (5-50 years), stronger customization, and conversion options. RBC Insurance emphasizes simplicity, offering customizable term durations (10-40 years), lower entry coverage starting at $50,000, and an easy-to-understand structure.
