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Q: How do I qualify for term life insurance?
A: You must be a permanent resident of Canada, between the ages of 18 and 70 and in good health to qualify for term life insurance.
Q: How do I qualify for preferred rates?
A: If you are in excellent health and you apply for amounts of $250,000 or more, based on a number of health and lifestyle factors you may qualify for a preferred rate. A preferred rate is a reduction in rates from the standard or regular rate that rewards good health. When you apply for insurance, the Licensed Insurance Advisor will ask you a series of questions that will indicate whether you could be eligible for a better rate.
Q: Are the rates guaranteed?
A: Once you are approved, your policy will contain a premium schedule that will show all premiums payable, including the renewal premiums. 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.
Q: How do I pay for my policy?
A: You may pay for your policy on a monthly or annual basis.
Q: What are the benefits of the policy?
A: The RBC Insurance Term 10 and 20 plans offer these benefits:
- Guaranteed Rates
- Preferred Rates available for amounts of $250,000 or more (Subject to approval)
- Automatic renewal to the age of 80
- Ability to convert to a permanent or universal life plan up to the age of 70, with no health questions or medical exam
- Based on your needs, you can purchase from $50,000 to $10,000,000 of coverage
Q: What is a conversion option?
A: A conversion option allows you to change or convert to another type of policy. For example, you may choose to convert to a permanent type of policy that covers you until age 100. If you do so, you will not need to complete a health questionnaire or medical exam.
Q: What’s the difference between term and permanent life insurance?
A: A main difference 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 life.
Term life insurance is generally the lower in cost when compared to permanent coverage. However, permanent life insurance can offer both protection and a cash value.
Q: How do my beneficiaries collect the money?
A: Your beneficiaries will receive a lump sum tax-free cheque in the event of your death, once they have submitted the required paperwork.
Q: Can I change my beneficiary?
A: 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.
Q: What if I occasionally smoke?
A: You 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.
Q: What if I quit smoking after the policy is issued?
A: 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.
Q: When does coverage start and end?
A: 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.
If you are paying by monthly automatic debit, we will automatically bill your account when you are approved. 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.
Coverage ends on the earlier of:
- The date you request to cancel your life insurance;
- The date you convert your term insurance to a permanent plan;
- The date of your death;
- When you turn age 80.
Q: Is there any cash value with the term policy?
A: There is no cash value with the term policy. The premium you pay is for protection only.
Q: Can I reduce my coverage?
A: You can reduce coverage at any time by contacting our office. The minimum amount of coverage you may request is $50,000 and the rate will be based on the reduced amount of insurance.
Q: Are there any exclusions?
A: Yes, during the first 2 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 then the company has the right to deny the benefit. This includes information regarding health, lifestyle or smoking habits.
Q: Can I cancel my policy at any time?
A: When your policy is mailed to you, you have 10 days to review the policy and if you want to cancel, we will refund your premiums.
Any time after that, you can cancel your insurance and you only pay the premium for the time you were covered.
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