Life Insurance Advice - RBC Insurance

Our Personal Insurance Advice site allows you to explore the different ways personal insurance can help meet your needs. You'll also find money-saving tips, hints for making the most of your coverage and answers to common questions.

Many people buy life insurance to help ensure their loved ones can continue to enjoy the quality of life they deserve. However, life insurance can also be a useful financial tool to enhance your wealth during your lifetime. In making the choice to buy life insurance, here are just a few of the ways it can help meet your needs:

Safeguard your family's financial security.

If loved ones depend on you for their day-to-day needs and future well being, it's crucial that you have life insurance coverage. Consider some of the ways your family can use it to maintain the same lifestyle:

Replace your lost income
Pay off outstanding loans and debts
Cover final expenses such as funeral costs and taxes
Help pay for your children's education

What's more, life insurance doesn't have to be expensive. RBC Insurance^® offers many different solutions to meet your needs and budget.

Protect your estate.

When your appreciated assets and investments transfer to your heirs, a significant percentage of the gains could be subject to substantial capital gains taxes. For example, if you bought a second home or seasonal property for $70,000 and it's now worth $270,000, then $100,000, representing 50% of the $200,000 capital gain, would be taxed at your estate's marginal income tax rate. If that rate is 45%, then your heirs would incur $45,000 in immediate tax liability.

To avoid this situation, you can purchase life insurance to pay for this potential tax liability. What's more, the death benefit payment from your policy will be tax-free.*

Enhance your retirement income.

If you're worried about not having enough retirement income, tax-exempt** universal life insurance can allow you to accumulate funds without being taxed on its earnings and generate tax-free* retirement income.

Universal life insurance policies usually increase in value over time. When you retire, you can use your policy as collateral to apply for a series of loans—without tax implications. At the time of your death, the loan amount and interest can be repaid through your policy's tax-free* death benefit.

Ready to learn more?

Visit our Life Insurance site for details on your specific coverage options and to explore the benefits of choosing RBC Insurance.

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Calculate Your
Life Insurance Needs

Your life insurance needs will change throughout your life. That's why it's a good idea to review your life insurance coverage on a regular basis.

Employer life insurance plans typically provide coverage for only 1 to 2 times your salary. It's recommended that you have coverage for 8-10 times your salary.

Not sure how much life insurance you need? Try our quick Life Insurance Needs Calculator to get an idea of how much insurance may be right for you.

If you buy term life insurance and your needs change, you can convert to another type of policy—for example, a permanent policy that covers you until age 100.

Are you an RBC Financial Group^® client? As a thank you for being a client, you can enrol to receive complimentary personal accident insurance—$1,000 of coverage for you and $1,000 of coverage for your spouse.

If you want a term life insurance quote, the quickest and easiest way is to get it online. You can also use our Life Insurance Needs Calculator to first calculate your coverage needs.

Next Tip

When should I buy life insurance?
You should consider your insurance needs during key life events such as marriage, buying a home, the birth of a child, a career change, divorce or separation, or retirement.

How does term life insurance work?
It gives you insurance protection for a set period of time, at an affordable price. If you die within the time period, your beneficiaries can receive the amount specified in your policy, tax-free.

How much term life coverage can I purchase?
Based on your needs, you can purchase from $50,000 to $10,000,000 worth of term life insurance coverage.

How do term and permanent insurance differ?
Term insurance has an end date, whereas permanent insurance provides coverage for life. Term insurance usually costs less, but permanent insurance can offer both protection and a cash value.

Next Question

*Note that probate fees are applicable if you have not designated a beneficiary and the proceeds of your policy become part of your estate.

**Current tax laws limit the maximum amount of funds that can be invested in a tax-sheltered insurance policy.

Disclaimer: This material provides only a general overview of how universal life insurance can be used to enhance retirement income. We recommend that you consult a qualified tax professional when doing your planning for retirement.