Term Life Insurance

To apply for term life insurance, please contact us:

• Call 1-866-223-7113
• Find an Insurance Advisor
• Find an Insurance Branch
• Send Us an Email

Yes, you can, provided that you request the cancellation in writing. When your policy is mailed to you, you have 10 days to review the policy; if you want to cancel, we will refund your premiums. Anytime after that, you can cancel your insurance and you only pay the premium for the time you were covered.

You may apply for term life insurance if you:

• Are between the ages of 18 and 70 (Term 10) or between the ages of 18 and 60 (Term 20), and
• Are a Canadian citizen or permanent resident/landed immigrant who has been in Canada for more than 12 months

If you smoke, you may still apply for coverage. You will qualify for non-smoker rates only if you have not used any form of tobacco products within the last 12 months. If you occasionally smoke or if you have quit smoking in the last 12 months, you are considered a smoker.

Term life insurance is a legal contract between you and RBC Insurance. In the event of your death, we will make a tax-free payment to your beneficiary or estate, usually referred to as a death benefit. (Note that probate fees are applicable if you have not designated a beneficiary and the proceeds of your policy become part of your estate.)

Our Term 10 and Term 20 life insurance plans provide protection that is guaranteed at a low cost for 10 or 20 years and are an affordable way to protect your family in the event of your death. These plans also provide the flexibility to renew coverage for an additional 10- or 20-year term, at a higher premium, until the age of 80.

The premium you pay goes towards life insurance coverage only. The policy does not build any cash value. However, our policies do allow you to convert your insurance to a permanent life insurance or universal life insurance plan at any time prior to the age of 71, with no health questions or medical exam⁽²⁾.

One of the differences between term and permanent life insurance is that term life insurance has an end date, for example at age 80, whereas permanent life insurance provides coverage for your lifetime.

Term life insurance is generally lower in cost when compared to permanent coverage. However, permanent life insurance may offer both coverage and a cash value.

Our Term 10 and 20 life insurance plans offer these benefits:

• Affordable guaranteed rates
• Automatic renewal to the age of 80
• Ability to convert to a permanent or universal life insurance plan prior to the age of 71, with no health questions or medical exam required⁽²⁾

The answer to this question depends on several factors, including your salary, whether you have some other group life insurance, your financial obligations and resources, and more. A typical recommendation is to purchase life insurance in an amount 8-10 times your yearly salary. However, your specific needs could be less than or greater than this recommendation.

Try our needs calculator to estimate how much insurance might be right for you.

How much life insurance do you need?

There is no cash value with a term policy. The premium you pay is for coverage only.

The conversion option allows you to change or convert to another type of life insurance policy⁽²⁾. For example, you may choose to convert to a permanent life insurance policy that covers you for life. If you do so, you will not need to complete a health questionnaire or medical exam.

Yes, you can change your beneficiary by completing a change in beneficiary form. If you name a beneficiary and designate them as "irrevocable" then the beneficiary must also agree to the change.

You are covered under the policy once you are approved and we receive the first premium. There should also be no change in your health during the review of your application. Please contact us or see a sample policy for complete details.

If you are paying by monthly pre-authorized debit, we will automatically debit your account when you are approved for coverage. When you select to pay on an annual basis, we will send out an invoice for the annual premium. Once payment is received, coverage starts. If there is any change in your health during our review of your application, please notify our office immediately.

As premiums become due under the policy, we will give you 30 days after your premium due date to make your premium payment. If we do not receive your payment during this time, the insurance will terminate and your coverage ends.

Your coverage ends on the earlier of:

• The date of your death
• The date you request to cancel your life insurance in writing
• The date you convert your term insurance to a permanent life insurance plan
• The date you exchange your Term 10 policy for a Term 20 policy
• The date you stop paying your insurance premiums (you have a 30-day grace period after payment is due)
• The policy anniversary nearest your 80^th birthday

Please contact us or see a sample policy for complete details.

Yes. You can apply to reduce or increase your coverage at any time. Your premiums will also be updated based on the new amount of insurance. Coverage increases will require medical evidence and are subject to approval.

Yes. During the first two years of coverage, if death is due to suicide, then no benefit is payable.

Also, if during the application process we are given incorrect or incomplete information, RBC Insurance has the right to deny the claim. This includes information regarding health, lifestyle or smoking habits.

When you apply for insurance, a licensed RBC Insurance^® advisor will ask you a series of questions that will indicate whether you could be eligible for a preferred rate. Whether or not you will qualify depends on the amount of coverage you are applying for, your family history, your health and lifestyle factors, whether you participate in dangerous sports, and more.

Once you are approved, your policy will contain a premium schedule that will show all premiums payable, including the renewal premiums that would apply at the end of your term—either 10 or 20 years. These premiums are guaranteed and cannot be changed by RBC Insurance. As long as you continue to pay your premiums, your coverage will continue at these rates. Rates are subject to approval by RBC Insurance.

You will pay premiums for either 10 or 20 years, depending on the term policy you have selected. After that, if you choose to renew your policy for another 10 or 20 years, you will continue to pay premiums for that term based on your renewal rates.

You may pay for your policy on a monthly or annual basis.

• If you are paying by monthly pre-authorized debit, we will automatically debit your account when you are approved for coverage.
• If you select to pay on an annual basis, we will send out an invoice for the annual premium.
• As premiums become due under the policy, we will give you 30 days after your premium due date to make your premium payment. If we do not receive your payment during this time, the insurance will terminate and your coverage ends.

Once the policy is issued, you can apply for a change to non-smoker rates if you have gone a full 12-month period without any form of tobacco products by contacting us and applying for a switch to non-smoker rates. You will have to complete a medical questionnaire and we will send out a nurse to collect some medical evidence, most likely a urinalysis. Once our underwriters have approved your application and your eligibility is confirmed, you will be switched to non-smoker rates.

Our goal is to make the claims process as stress-free as possible. Your beneficiaries will need to call us at 1-877-519-9501. An RBC Insurance^® representative will send them a claims form and guide them through the claims process.

Your beneficiaries will receive a lump sum tax-free payment in the event of your death, once they have submitted the required paperwork and the claim has been approved.