Is RBC Life Insurance Worth It? Full 2025 review
Our expert's opinion on RBC
RBC Life Insurance earns its place as a top-tier provider in Canada with a highly comprehensive and flexible product lineup, spanning simple term policies to sophisticated universal and whole life plans with strong cash-value growth potential and valuable conversion riders. Competing as a trusted, household name, RBC leverages its vast network to offer competitively priced term coverage while providing feature-rich permanent policies for complex financial needs.
Its diverse portfolio is well-suited for a broad clientele, from young families needing straightforward mortgage protection to affluent individuals and business owners requiring advanced estate and succession planning tools.
Policyholders have access to support through multiple channels, including dedicated phone lines and a comprehensive website, though it is important to note the public Trustpilot score stands at 1.5/5 from 44 reviews, where users have reported challenges with service response and claim timelines.
- ✅Broad selection of term and permanent plans
- ✅Term policies convertible to permanent coverage
- ✅Multiple cash value investment options
- ✅Available 1.5% universal life investment bonus
- ✅High coverage limits up to $25,000,000
- ✅Simplified issue option with no medical exam
- ✅Integrated disability benefit on universal life
- ❌Very low public customer satisfaction score
- ❌Reports of long customer service wait times
- ❌User-reported delays in claim processing
- ❌Customer complaints of aggressive cancellation practices
- ❌Standard two-year suicide clause
Score- ✅Broad selection of term and permanent plans
- ✅Term policies convertible to permanent coverage
- ✅Multiple cash value investment options
- ✅Available 1.5% universal life investment bonus
- ✅High coverage limits up to $25,000,000
- ✅Simplified issue option with no medical exam
- ✅Integrated disability benefit on universal life
Our expert's opinion on RBC
- ✅Broad selection of term and permanent plans
- ✅Term policies convertible to permanent coverage
- ✅Multiple cash value investment options
- ✅Available 1.5% universal life investment bonus
- ✅High coverage limits up to $25,000,000
- ✅Simplified issue option with no medical exam
- ✅Integrated disability benefit on universal life
- ❌Very low public customer satisfaction score
- ❌Reports of long customer service wait times
- ❌User-reported delays in claim processing
- ❌Customer complaints of aggressive cancellation practices
- ❌Standard two-year suicide clause
Score- ✅Broad selection of term and permanent plans
- ✅Term policies convertible to permanent coverage
- ✅Multiple cash value investment options
- ✅Available 1.5% universal life investment bonus
- ✅High coverage limits up to $25,000,000
- ✅Simplified issue option with no medical exam
- ✅Integrated disability benefit on universal life
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Chez HelloSafe, our life insurance experts review the terms and pricing of insurance policies on the market every year to provide you with a reliable and unbiased analysis. Thanks to this rigorous approach, hundreds of thousands of consumers in Canada trust us each month to guide them in their most important financial decisions.
RBC Life Insurance Guarantees
RBC Insurance offers a comprehensive suite of life insurance products in Canada, catering to a wide range of needs from basic temporary protection to complex wealth management solutions.
As a leader in the Canadian bancassurance market, RBC leverages its vast financial network to provide accessible and integrated insurance options.
Their product lineup includes flexible term policies with simplified online applications, as well as permanent plans like whole and universal life that build cash value, with pricing that varies significantly between smoker and non-smoker categories.
- Term Life: Offers coverage for set periods (10-40 years), convertible to permanent insurance, available with a simplified online application process.
- Whole Life: Provides lifelong protection with guaranteed premiums, builds cash value, and offers the potential for policyholder dividends.
- Universal Life: A flexible permanent policy combining a death benefit with a tax-advantaged investment account for wealth accumulation.
- Guaranteed Acceptance Life: No-medical life insurance for Canadians aged 40-75, offering smaller coverage amounts for final expenses.
Key riders available may include:
- Accidental Death & Dismemberment (AD&D)
- Waiver of Premium for disability (WOP)
- Critical Illness
- Conversion guarantee
- Indexed growth
- Participating dividends
- Education/conjoint annuity ❌
| Feature | Term Life | Whole Life | Universal Life | Hybrid (Guaranteed Acceptance) |
|---|---|---|---|---|
| 🪙 Death benefit | Level, guaranteed for the term | Level, guaranteed for life | Flexible (Level or Increasing) | Level, guaranteed, lower amounts |
| 📈 Cash value accumulation | ❌ | Yes, guaranteed + potential dividends | Yes, linked to investment performance | ❌ |
| 💸 Policy loans | ❌ | Yes, against cash value | Yes, against cash value | ❌ |
| 🛡️ Available riders | Limited | Yes (e.g., WOP) | Yes (e.g., WOP) | ❌ |
| 🔄 Conversion guarantee | Yes, up to age 71 | ❌ | ❌ | ❌ |
| 📈 Participating dividends | ❌ | Yes | ❌ | ❌ |
| 💲 Cost of key riders (% of base premium) | 5-20% | 5-20% | 5-20% | ❌ |
| 🔄 Premium flexibility | ❌ | ❌ | Yes | ❌ |
| ⏳ Surrender charges | ❌ | Yes, decreasing schedule | Yes, decreasing schedule | ❌ |
| 🎂 Issue age range | 18-75 | 0-80 | 0-85 | 40-75 |
| 🔒 Guaranteed level (if applicable) | Yes, premiums guaranteed for the term | Yes, premiums, death benefit, cash value | Optional, on cost of insurance | Yes, premiums and death benefit |
The Cost of RBC Life Insurance
RBC determines life insurance premiums through a detailed risk assessment process known as underwriting.
This evaluation considers an individual's personal health, family medical history, and lifestyle to classify them into a specific risk category.
Based on this classification, along with the chosen coverage amount and policy type, a final premium is calculated to accurately reflect the likelihood of a claim.
- Age: Premiums increase with age; a 40-year-old may pay 80-100% more than a 30-year-old for the same coverage.
- Health status: Excellent health can lead to preferred rates (15-25% discount), while pre-existing conditions like controlled high blood pressure can add a rating (e.g., +50% to base premium).
- Smoker status: Smokers typically pay 100-150% more than non-smokers due to significantly higher mortality risk.
- Coverage amount: Premiums increase with the death benefit, but the cost per thousand dollars of coverage often decreases for larger policies (e.g., over $1 million).
- Policy term: Longer term lengths (e.g., Term 20 vs. Term 10) have higher initial premiums because the rate is guaranteed for a longer period.
- Rider costs: Adding optional benefits increases the cost; a Waiver of Premium rider may add 5-10%, while a Critical Illness rider could add 15-30% or more to the total premium.
| Profile | Coverage amount | Non-smoker premium | Smoker premium | Professional premium |
|---|---|---|---|---|
| 30-year-old, excellent health | $500,000 | $34/month | $75/month | $31/month |
| 45-year-old, with pre-existing condition (rated +50%) | $500,000 | $115/month | $270/month | $108/month |
| 40-year-old professional, excellent health | $1,000,000 | $92/month | $210/month | $85/month |
What are the surrender charges for RBC life insurance?
When an RBC permanent life insurance policy with a cash value component, such as a Universal Life policy, is terminated prematurely, a surrender charge is applied. These charges are designed to cover the initial costs incurred by the insurer for issuing the policy. For a specific period after the policy is issued, a percentage of the accumulated cash value is withheld if the policy is surrendered. This penalty period has a defined duration, during which the surrender charge decreases annually in a pre-set schedule.
After the penalty period concludes, the policy can be surrendered without any surrender charge, and the policy owner receives the full cash surrender value. The surrender charge directly reduces the amount of capital paid out, meaning the cash surrender value is calculated as the total accumulation value minus the applicable surrender charge.
| Year | Fee % | Example & Tax treatment |
|---|---|---|
| 1 | 10% | CAD 90,000 returned on CAD 100,000 accumulation value. Policy gains are taxable. |
| 2 | 8% | CAD 92,000 returned on CAD 100,000 accumulation value. Policy gains are taxable. |
| 3 | 6% | CAD 94,000 returned on CAD 100,000 accumulation value. Policy gains are taxable. |
| 4 | 4% | CAD 96,000 returned on CAD 100,000 accumulation value. Policy gains are taxable. |
| 5 | 2% | CAD 98,000 returned on CAD 100,000 accumulation value. Policy gains are taxable. |
| 6+ | 0% | CAD 100,000 returned on CAD 100,000 accumulation value. Policy gains are taxable. |
Example of Policy Surrender Charges
Based on a policy with an accumulation value of CAD 100,000, surrendering in year 1 results in a charge of CAD 10,000, and the capital returned is CAD 90,000. In contrast, surrendering the same policy in year 5 results in a charge of CAD 2,000, and the capital returned is CAD 98,000.
The Exclusions and Limitations of RBC Life Insurance
RBC life insurance policies include specific exclusions where a death benefit will not be paid:
- Suicide: The death benefit is not paid if suicide occurs within two years of the policy's start date.
- Misrepresentation: The policy can be voided for material misrepresentation within two years or for fraud at any time.
- Criminal acts: No benefit is paid if death occurs during the commission or attempted commission of a criminal offense.
- High-risk activities: Death resulting from excluded extreme sports or hazardous hobbies may not be covered without specific underwriting.
- Private aviation: Death as a pilot or crew member of a non-commercial aircraft is typically excluded from coverage.
- Intoxication: Death from excessive alcohol or voluntary ingestion of illegal drugs can be excluded from coverage.
- Assistance services: The policy does not include services like medical teleconsultation, repatriation, or legal assistance.
What customers think of RBC's life insurance
| Review site | Rating and number of reviews |
|---|---|
| Trustpilot | 1.5/5 (44 reviews) |
The following points summarize the feedback provided by RBC life insurance customers:
- A recurring complaint is the excessive wait times for customer service and unreliable communication channels.
- The company faces criticism for its policy management, including aggressive cancellations and unexpected premium increases.
- Some customers have reported significant administrative errors, such as the failure to correctly list a beneficiary.
- The claims process is described as slow, with notable delays in settling and paying out benefits.
How to Contact RBC
| Detail | Information |
|---|---|
| Address | RBC Life Insurance Company, P.O. Box 515, Station A, Mississauga, ON L5A 4M3 |
| Phone | For quotes and general inquiries, call 1-866-223-7113. |
| A direct email address for life insurance inquiries is not publicly provided. | |
| Website | https://www.rbcinsurance.com/life-insurance/index.html |
| Responsiveness / Hours | Operating hours are not specified, but customer reviews frequently cite long wait times when calling. |
| Live chat | A live chat feature to connect with an advisor is available on the website, typically during business hours. |
| Social media | The main corporate handle is @RBC on X (formerly Twitter), but it is not a primary channel for detailed policy support. |
FAQ
What is the main difference between RBC Term and Universal life insurance?
RBC Term Life insurance provides coverage for a specific period, such as 10 or 20 years, and does not build any cash value. In contrast, RBC Universal Life insurance offers permanent, lifelong coverage combined with an investment component, allowing you to build a tax-advantaged cash value over time. Universal Life also provides more flexibility in premium payments and death benefit options.
Is the death benefit from an RBC life insurance policy taxable in Canada?
In Canada, the death benefit paid from a life insurance policy to a named beneficiary is typically received tax-free. This makes it an efficient way to transfer wealth or cover final expenses without creating a tax burden for your loved ones. However, if the death benefit is paid to the estate, it may become subject to probate fees.
Do I need to take a medical exam to get life insurance with RBC?
Whether a medical exam is required depends on the type of policy, your age, and the amount of coverage you apply for. RBC offers Simplified Term Life and Guaranteed Acceptance Life Insurance, which may not require a medical exam, making the application process faster. Other policies, especially those with higher coverage amounts, will typically require a full medical underwriting process.
What happens if I cancel my RBC life insurance policy?
If you cancel an RBC Term Life policy, the coverage simply ends, and you will not receive any money back as these policies do not accumulate cash value. If you cancel a Universal Life policy, you can access the accumulated cash value, but you may be subject to surrender charges, especially in the early years of the policy. These charges decrease over time.
How long does it typically take for a claim to be paid out?
The time it takes to pay out a life insurance claim depends on the timely submission of all required documents, such as the death certificate and claimant forms. While many claims are processed within a few weeks, delays can occur if the information is incomplete or if the death occurs within the first two years of the policy, which may trigger a review. Customer reviews indicate that claim processing times can sometimes be lengthy.
Who can I name as a beneficiary on my policy?
You can name any person, multiple people, a trust, or a charitable organization as the beneficiary of your RBC life insurance policy. It is crucial to designate a specific beneficiary to ensure the death benefit is paid directly to them, avoiding probate and estate taxes. You should also consider naming a contingent beneficiary in case your primary beneficiary is unable to receive the funds.
Are there situations where RBC might not pay a death benefit?
Yes, there are specific exclusions where a claim may be denied. The most common exclusion is for suicide if it occurs within the first two years of the policy's start date or reinstatement date. Claims can also be denied if there was a significant misrepresentation or fraudulent information provided on the application, which is discovered during the two-year contestability period.
What is the main difference between RBC Term and Universal life insurance?
RBC Term Life insurance provides coverage for a specific period, such as 10 or 20 years, and does not build any cash value. In contrast, RBC Universal Life insurance offers permanent, lifelong coverage combined with an investment component, allowing you to build a tax-advantaged cash value over time. Universal Life also provides more flexibility in premium payments and death benefit options.
Is the death benefit from an RBC life insurance policy taxable in Canada?
In Canada, the death benefit paid from a life insurance policy to a named beneficiary is typically received tax-free. This makes it an efficient way to transfer wealth or cover final expenses without creating a tax burden for your loved ones. However, if the death benefit is paid to the estate, it may become subject to probate fees.
Do I need to take a medical exam to get life insurance with RBC?
Whether a medical exam is required depends on the type of policy, your age, and the amount of coverage you apply for. RBC offers Simplified Term Life and Guaranteed Acceptance Life Insurance, which may not require a medical exam, making the application process faster. Other policies, especially those with higher coverage amounts, will typically require a full medical underwriting process.
What happens if I cancel my RBC life insurance policy?
If you cancel an RBC Term Life policy, the coverage simply ends, and you will not receive any money back as these policies do not accumulate cash value. If you cancel a Universal Life policy, you can access the accumulated cash value, but you may be subject to surrender charges, especially in the early years of the policy. These charges decrease over time.
How long does it typically take for a claim to be paid out?
The time it takes to pay out a life insurance claim depends on the timely submission of all required documents, such as the death certificate and claimant forms. While many claims are processed within a few weeks, delays can occur if the information is incomplete or if the death occurs within the first two years of the policy, which may trigger a review. Customer reviews indicate that claim processing times can sometimes be lengthy.
Who can I name as a beneficiary on my policy?
You can name any person, multiple people, a trust, or a charitable organization as the beneficiary of your RBC life insurance policy. It is crucial to designate a specific beneficiary to ensure the death benefit is paid directly to them, avoiding probate and estate taxes. You should also consider naming a contingent beneficiary in case your primary beneficiary is unable to receive the funds.
Are there situations where RBC might not pay a death benefit?
Yes, there are specific exclusions where a claim may be denied. The most common exclusion is for suicide if it occurs within the first two years of the policy's start date or reinstatement date. Claims can also be denied if there was a significant misrepresentation or fraudulent information provided on the application, which is discovered during the two-year contestability period.
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