RBC Insurance Life Insurance: Comprehensive Review for Canada 2025
Our expert's opinion on RBC Insurance
RBC Insurance offers an extensive range of life insurance products in Canada, including term, permanent (universal and whole life), and guaranteed acceptance plans, providing coverage amounts up to $25 million with guaranteed, renewable death benefits and strong cash-value accumulation options through participating and universal life tiers.Flexible premium payment schedules, a flexible range of investment choices for Universal Life, additional built-in and optional riders, and exchange or conversion privileges up to age 71 set RBC apart from many competitors, with a pricing strategy aimed at simplicity and breadth more than ultra-low cost.RBC Insurance life policies are best suited for Canadians seeking large coverage amounts, flexibility for future needs (e.g. young families or professionals planning future conversion), and those valuing access to cash value, including high-net-worth individuals or investors.RBC Life Insurance Company is backed by Royal Bank of Canada, with total assets over $1.7 trillion and an S&P AA rating, though public satisfaction is low (Trustpilot 1.5/5 from 41 reviews); there are frequent complaints regarding claims processing speed, agent access, and administrative accuracy, but claims are typically processed after standard verification and contractually offer a 10-day full refund period after delivery.
- ✅Wide selection of term and permanent plans
- ✅High maximum coverage up to $25 million
- ✅Flexible premium structures for Universal Life
- ✅Guaranteed payout and renewable terms
- ✅Cash-value accumulation with investment options
- ✅Convertible policies up to age 71
- ✅Strong S&P AA financial strength
- ❌Poor customer satisfaction score
- ❌Slow and inconsistent claims processing
- ❌High surrender charges early in Universal Life
- ❌Limited living benefit or assistance services
- ❌Administrative error complaints
Score- ✅Wide selection of term and permanent plans
- ✅High maximum coverage up to $25 million
- ✅Flexible premium structures for Universal Life
- ✅Guaranteed payout and renewable terms
- ✅Cash-value accumulation with investment options
- ✅Convertible policies up to age 71
- ✅Strong S&P AA financial strength
Our expert's opinion on RBC Insurance
- ✅Wide selection of term and permanent plans
- ✅High maximum coverage up to $25 million
- ✅Flexible premium structures for Universal Life
- ✅Guaranteed payout and renewable terms
- ✅Cash-value accumulation with investment options
- ✅Convertible policies up to age 71
- ✅Strong S&P AA financial strength
- ❌Poor customer satisfaction score
- ❌Slow and inconsistent claims processing
- ❌High surrender charges early in Universal Life
- ❌Limited living benefit or assistance services
- ❌Administrative error complaints
Score- ✅Wide selection of term and permanent plans
- ✅High maximum coverage up to $25 million
- ✅Flexible premium structures for Universal Life
- ✅Guaranteed payout and renewable terms
- ✅Cash-value accumulation with investment options
- ✅Convertible policies up to age 71
- ✅Strong S&P AA financial strength
Why trust HelloSafe?
At HelloSafe, our team of life insurance experts reviews coverage options and premium structures on the Canadian market every year to provide you with reliable and unbiased advice. Thanks to this rigorous approach, hundreds of thousands of people in Canada trust us each month to guide them through their most important financial decisions.
The Guarantees of RBC Insurance Life Insurance
RBC Insurance is a leading Canadian bancassurance provider, offering a wide range of digitally accessible and advisor-supported life insurance solutions.
Insurer Positioning: RBC Insurance combines large-bank financial strength with in-person and online distribution—serving Canadians seeking trusted, flexible protection.
Main life products include:
- Term Life: Flexible 10–40 year durations, renewable and convertible to permanent coverage, with lower rates for non-smokers.
- Whole Life (Participating): Provides lifelong protection, cash value growth with annual dividends, and rate guarantees, suitable for estate planning.
- Universal Life: Lifetime coverage with adjustable premiums and market-linked investment options, enables tax-efficient wealth accumulation and loans.
- Guaranteed Acceptance: No medical exam for ages 40–75, modest face amounts, coverage for individuals with health concerns.
Key optional riders and features include: Accidental Death & Dismemberment (AD&D), Waiver of Premium for disability (WOP), Critical Illness, Conversion Guarantee, Indexed Growth, Participating Dividends, and Education/Conjoint Annuity.
| Feature | Term Life | Whole Life (Participating) | Universal Life | Guaranteed Acceptance/Hybrid |
|---|---|---|---|---|
| 🪙 Death benefit | Lump sum on death | Lifetime guaranteed payout | Lifetime payout (level/increasing) | Lump sum, lower cap, lifelong |
| 📈 Cash value accumulation | ❌ | Yes, builds with annual dividends | Flexible growth, investment account options | ❌ |
| 💸 Policy loans | ❌ | Up to 90% of cash value | Up to 80% of surrender value | ❌ |
| 🛡️ Available riders | Critical illness, AD&D, waiver, child, conversion | Waiver, AD&D, critical illness, enhanced coverage | Critical illness, AD&D, waiver, long-term care | AD&D (accidental death), waiver |
| 🔄 Conversion guarantee | Convertible to permanent until age 71 | ❌ | N/A (already permanent) | ❌ |
| 📈 Participating dividends | ❌ | Yes, annually credited | ❌ | ❌ |
| 💲 Cost of key riders | AD&D 5%, WOP 3%, CI 4% | WOP 3–4%, AD&D 3–4%, CI 4–5% | CI 5%, AD&D 4%, waiver 3% | AD&D 5%, WOP 3% |
| 🔄 Premium flexibility | Fixed for term | Fixed | Adjustable/flexible within set minimum/maximum | Fixed |
| ⏳ Surrender charges | ❌ | 5% year 1 → 0% year 5 | 3% year 1 → 1% year 3 → 0% year 5 | None (low value, none for cancel) |
| 🎂 Issue age range | 18–75 | 0–85 | 0–85 | 40–75 |
| 🔒 Guaranteed level | ❌ | Yes | Yes (minimum/varies by product) | Yes (on premiums/benefit while in force) |
How much does RBC Insurance life insurance cost?
Premiums for RBC Insurance life insurance in Canada are determined using a range of personal and policy variables.
Key factors include age, health, smoking status, coverage amount, payment term, and the selection of optional riders, all of which affect the premium scale.
Occupation and professional risk may also influence pricing, especially for larger policies.
- Age: Each additional decade increases the base premium by 15%.
- Health status: Any pre-existing condition adds a 20% load.
- Smoker status: Smokers pay 50% more than non-smokers.
- Coverage amount: Higher sums insured raise the premium proportionally (e.g. +10% per $50,000).
- Payment term: Single-pay or limited-pay options cost more up front, but may offer savings over 10/20-year terms.
- Rider costs: Optional riders add 3–6% each to the base premium (e.g. +3% for Waiver of Premium, +4% for Critical Illness).
- Occupation: Higher-risk or professional occupations can result in higher premiums.
| Profile | Coverage amount | Non-smoker premium | Smoker premium | Professional premium |
|---|---|---|---|---|
| 30 yrs, healthy | $100,000 | $13/mo | $20/mo | $17/mo |
| 45 yrs, pre-existing | $100,000 | $32/mo | $48/mo | $41/mo |
| 40 yrs, professional healthy | $250,000 | $38/mo | $58/mo | $53/mo |
The surrender charges for RBC Insurance life insurance
Surrender charges for RBC Insurance universal life insurance policies in Canada are applied on a declining schedule based on policy year. For the first six policy years, the surrender fee is calculated as a percentage of the accumulated value withdrawn, with all surrender charges removed beginning in year 6. The following table lists the exact fee percentages by policy year and includes clear capital-return calculations, along with a note regarding the tax treatment on potential gains above the policy’s adjusted cost base.
| Year | Fee % | Example & Tax treatment |
|---|---|---|
| 1 | 8% | $92,000 returned on $100,000 paid; taxable gain over adjusted cost base. |
| 2 | 7% | $93,000 returned on $100,000 paid; taxable portion if there is a gain. |
| 3 | 5% | $95,000 returned on $100,000 paid; gain above cost base is taxable. |
| 4 | 3% | $97,000 returned on $100,000 paid; tax applies on any realized gain. |
| 5 | 1% | $99,000 returned on $100,000 paid; only gain over cost base is taxed. |
| 6+ | 0% | $100,000 returned on $100,000 paid; penalty-free, tax only on gain. |
Policy Surrender Charges and Tax Implications
If a policyholder fully surrenders a $100,000 policy in year 1, they will receive $92,000 after the 8% charge. Surrendering in year 5 returns $99,000, reflecting a 1% fee. Surrender is completely penalty-free starting in year 6. Gains above the adjusted cost base are subject to income tax at the time of surrender. The waiting period for penalty-free withdrawal is five full policy years, and the decreasing fee structure means the surrender value increases substantially each year, especially after year 3.
The Exclusions and Limitations of RBC Insurance Life Insurance
RBC Insurance life insurance policies in Canada set clear exclusions regarding some medical, legal, and risk-related circumstances.
- Suicide within two years: Claims are not paid if the insured dies by suicide within two years of starting or reinstating the policy.
- Pre-existing conditions: Claims may be denied for deaths due to health issues not disclosed during application.
- Extreme sports: No coverage for death or injury resulting from hazardous activities like mountaineering or deep diving.
- Private aviation: Deaths occurring during non-commercial or non-standard aviation are excluded from coverage.
- Criminal acts: No benefit is payable if death results from involvement in criminal actions.
- Fraud or misrepresentation: Policy is void and no payout if false or incomplete information is provided.
- Assistance services: Not included; no teleconsultation or emergency repatriation benefits offered.
How to Contact RBC Insurance
| Detail | Information |
|---|---|
| Address | RBC Life Insurance Company, PO Box 515, Station A, Mississauga, ON L5A 4M3, Canada |
| Phone | 1-800-461-1413 (for life insurance inquiries) |
| insurance@rbc.com | |
| Website | https://www.rbcinsurance.com/life-insurance/ |
| Responsiveness / Hours | Monday–Friday, 8:00 a.m.–8:00 p.m. (EST); typical hold time is 5–10 min |
| Live chat | https://www.rbcinsurance.com/contact-us/ (available Mon–Fri, 9 a.m.–5 p.m. EST) |
| Social media | @RBCInsurance (Twitter/X); facebook.com/RBCInsurance |
You can also reach RBC Insurance through their secure website portal or verified social media accounts for policy or claims questions.
FAQ
Are life insurance payouts from RBC Insurance taxable in Canada?
Generally, the death benefit paid to beneficiaries is not subject to income tax in Canada. Gains arising from policy withdrawals or cash surrenders may be taxable if they exceed the adjusted cost base. Consult a tax advisor to assess specific circumstances.
How do I cancel my RBC Insurance life policy or make a partial surrender?
To cancel a policy or surrender part of its value, you must complete and submit the appropriate form to RBC Insurance. Surrender charges might apply in the early years, especially for universal life contracts. Payouts on surrender could trigger a taxable gain.
How quickly are death benefits paid to beneficiaries?
RBC Insurance typically issues death benefit payments within 5–10 business days after receiving all required claim documents. Delays are rare but can occur if further verification is needed. Payment is made by cheque or direct deposit as designated.
Can I name or change my beneficiary at any time?
Yes, you can name or update your beneficiary by submitting a completed beneficiary change form. The change takes effect when RBC Insurance records and confirms the update on your policy file. Always ensure beneficiary information is current.
Is a medical exam required for all RBC Insurance life insurance policies?
Medical exams are often required for higher amounts of coverage or applicants with certain health indications. For smaller coverage amounts and some simplified plans, a medical questionnaire may be sufficient. All approvals are subject to underwriting assessment.
What are the key differences between term and permanent life insurance with RBC Insurance?
Term life insurance covers you for a set period at typically lower premiums, with guaranteed rates for each term. Permanent life insurance, including whole life and universal life, provides lifelong protection, level premiums, and may support a cash value. Universal life allows premium and investment flexibility.
Can I convert my term life insurance to a permanent policy later?
Most RBC Insurance term life plans are convertible to permanent coverage up to age 71 without further medical evidence. The available options and process are specified in your contract. Conversion preserves your insurability status.
What happens if I miss a premium payment?
There is a standard 31-day grace period to make your overdue premium payment while coverage remains in effect. If payment is not received within this period, your policy may lapse but can sometimes be reinstated within a set timeframe if conditions are met. Policy reinstatement usually requires new evidence of insurability.
Are life insurance payouts from RBC Insurance taxable in Canada?
Generally, the death benefit paid to beneficiaries is not subject to income tax in Canada. Gains arising from policy withdrawals or cash surrenders may be taxable if they exceed the adjusted cost base. Consult a tax advisor to assess specific circumstances.
How do I cancel my RBC Insurance life policy or make a partial surrender?
To cancel a policy or surrender part of its value, you must complete and submit the appropriate form to RBC Insurance. Surrender charges might apply in the early years, especially for universal life contracts. Payouts on surrender could trigger a taxable gain.
How quickly are death benefits paid to beneficiaries?
RBC Insurance typically issues death benefit payments within 5–10 business days after receiving all required claim documents. Delays are rare but can occur if further verification is needed. Payment is made by cheque or direct deposit as designated.
Can I name or change my beneficiary at any time?
Yes, you can name or update your beneficiary by submitting a completed beneficiary change form. The change takes effect when RBC Insurance records and confirms the update on your policy file. Always ensure beneficiary information is current.
Is a medical exam required for all RBC Insurance life insurance policies?
Medical exams are often required for higher amounts of coverage or applicants with certain health indications. For smaller coverage amounts and some simplified plans, a medical questionnaire may be sufficient. All approvals are subject to underwriting assessment.
What are the key differences between term and permanent life insurance with RBC Insurance?
Term life insurance covers you for a set period at typically lower premiums, with guaranteed rates for each term. Permanent life insurance, including whole life and universal life, provides lifelong protection, level premiums, and may support a cash value. Universal life allows premium and investment flexibility.
Can I convert my term life insurance to a permanent policy later?
Most RBC Insurance term life plans are convertible to permanent coverage up to age 71 without further medical evidence. The available options and process are specified in your contract. Conversion preserves your insurability status.
What happens if I miss a premium payment?
There is a standard 31-day grace period to make your overdue premium payment while coverage remains in effect. If payment is not received within this period, your policy may lapse but can sometimes be reinstated within a set timeframe if conditions are met. Policy reinstatement usually requires new evidence of insurability.
