How to Get Life Insurance Online Quickly and Easily

If you’re juggling debt and a family, it’s natural to think about their future–especially if something happens to you. Life insurance provides a financial safety net for them with a one-time, tax-free payout. It’s affordable, provides immediate coverage and it starts with an easy online application.

Key takeaways

• Life insurance provides a one-time, tax-free death benefit to your beneficiaries in the event you pass away

• The proceeds can be used however your beneficiaries need it most

• It is possible to apply online for life insurance quickly and easily and without a medical exam

• Your choice of term can be customized to your budget, and your coverage needs

• Not all life insurance options are available to purchase online

What to consider before getting life insurance online

It can be daunting to think about life insurance (and what happens after you die), but once you understand the purpose, benefits and limitations of buying life insurance online, you can easily find a policy that meets your needs.

Why buy life insurance?

There are many reasons to buy life insurance but perhaps the main one is to provide financial security to those who depend on you after you pass away. Upon your death, your beneficiary, such as your spouse, receives a one-time, non-taxable lump-sum death benefit.

This money can be used however it is most needed, such as:

• Covering the cost of funeral or cremation expenses

• Paying off the mortgage and/or other household debt

• Replacing lost income for childcare expenses or household bills

• Funding your child(ren)’s tuition or other education expenses

• Creating a tax-free inheritance

When is the best time to apply for life insurance?

There is no best time to buy life insurance but typically, if you apply when you are young and healthy, your premiums will likely be lower.

Some people time their purchase of life insurance to coincide with a major life event, such as getting married, buying a house or having a baby. Once you have other people depending on your income, or if you have debt (such as a mortgage) that will remain after your death, then it’s a good idea to apply for life insurance.

You should likely consider purchasing life insurance now if you:

• Are expecting a baby or have kids or other dependents

• Share financial responsibilities with a spouse or partner

• Have debt, such a mortgage, personal loans or a car loan

• Do not have enough savings to cover end-of-life expenses, such as your funeral, cremation or burial

• Want to leave an inheritance to your family and loved ones

What is the right amount of life insurance coverage?

Life insurance is not one-size-fits all and it’s important to consider both your financial needs (including your total debt) and your budget.

Financial needs

• Debt: How much debt do you have and how long will it take to pay off?

• Your current income: How much replacement income do you need to help your spouse or partner with day-to-day expenses?

• Your end-of-life expenses: The cost of a funeral, cremation or burial costs can vary significantly, starting at $800 for a simple cremation up to $15,000 (or more) for a burial, according to Canadian Funerals.

• Future education expenses: A four-year degree can cost over $100,000, including tuition, living expenses and food.

• Inheritance: How much do you want to leave your family as extra, above these basic needs?

You may also have employer-provided life insurance. While this is a great benefit, especially if you don’t have other coverage, it’s important to understand its limitations, namely:

• Coverage is usually two to three times your salary, which may not be enough

• Your policy is only in effect while you are employed by that company, so if you get laid off or switch jobs, you will lose that coverage
  

Employer-provided life insurance can provide excellent supplemental coverage, but if you have the budget, purchasing more that is not tied to your employer can add another layer of security for your dependents.

Budget

The amount of your life insurance premium, which is typically paid monthly or annually, depends on several factors, such as your:

• Age: Generally, the younger you are, the cheaper the insurance policy

• Gender: Women statistically live longer than men, so their premiums may be cheaper

• Tobacco use: Smokers pay a higher premium than non-smokers

• Health: Healthier people (for example, no chronic high blood pressure) pay a lower premium

• Lifestyle: Your premiums will be higher if you’ve had your driver’s license revoked, if you’re facing criminal charges or if you engage in risky activities, such as sky diving or flying

Keep in mind that some life insurance coverage is better than none if you can’t currently afford to purchase the amount of coverage that meets all your future financial needs. You can always add more coverage as your budget allows, though you will need to qualify based on your age and health at that time.

What health information will you need to provide?

Depending on the insurance that you are applying for, you will need to answer questions about your health and lifestyle, such as:

• Age

• Gender

• If you’re a smoker (includes any form of tobacco, betel nut leaves, vaping or smoking cessation products, among other products)

• Your occupation

• Any diagnosis or chronic conditions, such as high cholesterol or cancer

• If you engage in high-risk or hazardous activities, such as racing, mountain climbing or flying aircrafts.

• If you’ve been charged with impaired driving or alcohol or drug-related offenses or activity.

Who will be your life insurance beneficiary?

A life insurance beneficiary is the person (or entity) who you designate to receive the proceeds from your policy after you pass away. The death benefit is paid directly to your beneficiary or beneficiaries and does not become part of your estate, meaning it bypasses probate.

You can choose anyone to be your beneficiary, such as your spouse, children (if they are under the age of majority, you would name a trust), siblings or other family members, a friend, business partner or charity. You can choose one beneficiary or multiple ones, and you can tailor how much each beneficiary receives.

When choosing a beneficiary, it’s important to consider who is most dependent on your income now, and in the future. If you have young children, for example, a life insurance policy can help your surviving spouse with future post-secondary education costs.

It’s also important to ensure you keep your beneficiaries up-to-date, especially after a significant life change, such as marriage, divorce, or having children.

Types of life insurance available online

RBC offers two types of life insurance you can buy entirely online:

Term life insurance

Term life insurance provides affordable coverage for a set time, or term, such as 10, 15, or 20 years. Your premium will stay the same for the entire term but it’s important to note it will increase when you renew.

Here are some of the key features of simplified term life insurance with RBC:

• Terms between 10 and 40 years

• $50,000 to $1 million in coverage for ages 18 to 55

• $50,000 to $499,999 in coverage for ages 56+

• No medical exam

• Premium will not increase for the length of the term

• Option to renew (at higher premium) at end of the term

• Accidental death benefit that pays an additional $10,000 available

• No cash value to your policy beyond the death benefit

• 30-day money-back review period

• Must be a Canadian citizen or permanent resident

Curious to know how much term life insurance might cost you? Get a term life quote online in a few minutes to find out.

If you are applying for more than $1 million in coverage, or if you are between the ages of 56 and 70 applying for more than $500,000 in coverage, you’ll need to speak to an accredited insurance advisor.

No medical exam life insurance

This is a kind of permanent life insurance that covers you for the rest of your life. Your premiums will never go up and your policy does not expire, if your premiums are maintained. With this guaranteed issue insurance, there is no medical exam, but coverage is lower than other insurance options available.

Here are some key features of RBC’s guaranteed acceptance life insurance:

• Available for Canadians or permanent residents aged 40 to 75

• Between $5,000 to $40,000 in lifetime coverage

• Premiums remain the same

• No medical exams or health questions

• Accidental death benefit (before age 85) of five times the basic coverage

• No cash value to your policy beyond the death benefit

• 30-day money-back review period

Curious to know more? Easily get a quote for guaranteed life acceptance insurance with no medical exam.

Pros and cons of buying life insurance online

If you’ve been considering life insurance, buying a policy online has several advantages. To know if it’s the right choice for you, it’s important to also be aware of the downsides.

Pros of buying life insurance online

• Convenience: You can purchase insurance anytime and anywhere that is convenient for you without having to book an appointment with an advisor.

• Speed: Buying life insurance is typically a quick process, where you provide basic information about yourself, your health and your lifestyle. You can then pay for your policy online.

• No need for medical exam: With life insurance products such as RBC Simplified Term Life Insurance and RBC Guaranteed Life Insurance, there is typically no need for a medical exam.

• Money-back guarantee: With RBC Insurance, you’ll have a specified period, typically 30 days, to review your policy. If it’s not the right fit, you have the option to cancel your policy and get a full refund.

Cons of buying life insurance online

• Limited to basic insurance types: If you’re looking for more sophisticated life insurance coverage, such as Term 100 Life Insurance that offers higher coverage amounts and special riders like disability, you cannot purchase those products online.

• No personalized advice: Shopping online means you don’t have the experience or guidance of a licensed advisor who can offer personalized advice to your circumstances and needs.

• You may overlook the fine print: While you can buy your policy quickly and easily, your insurance coverage will include a list of terms and conditions. For example, if you die within the first two years of purchasing Guaranteed Life Insurance coverage, the death benefit is limited to a refund of your premiums paid (without interest).

While purchasing a life insurance policy online is easy, if you have questions about your options or are unsure what kind of insurance is the best fit for you and your family, it may be helpful to contact an accredited insurance advisor for a more comprehensive life insurance quote.

How to apply for life insurance online

Once you’ve decided you want to purchase life insurance, it’s time to figure out how much coverage you need. To recap, start by reviewing your current financial situation and your goals.

Know what coverage you’ll need

Here are some questions to ask yourself before you begin:

How much debt do I have? This includes your mortgage and any loans.

What expenses do I expect? When you think of “saving for the future,” what does this include? It could be post-secondary education for kids, 

What expenses do I anticipate when I die? Get specific about your final wishes when you die and understand the costs associated with a funeral.

What financial legacy do I want to leave? Are there charities or organizations you want to donate to after you’ve passed away?

Our life insurance calculator can help you figure out how much coverage you might need.

This online tool asks questions about your:

• Age

• Marital status

• If you have kids and their ages (if under the age of majority)

• Your gross annual income

• If you have debt and if so, how much you’d need to pay it off

Once you have the total coverage amount in mind, you can easily compare life insurance plans to find the one that meets your eligibility and coverage needs.

Tips for getting approved for life insurance online quickly

• Best honest in your application, especially if you’re a smoker (for the purposes of an application, smoking includes any form of tobacco, betel leaves, vaping, and smoking cessation products)

• Have a clear understanding of your coverage needs

• Choose a policy that best suits your age and health profile

• If you have preexisting medical conditions, or are afraid of needles or medical appointments, consider a policy that does not ask health questions or require a medical exam

• Have your payment method (such as a credit card) ready

Get a life insurance quote online in minutes

If you’re looking for simplified life term life insurance or guaranteed acceptance life insurance that provides immediate coverage, you can save time and stress by getting a quote online.

To start, you’ll need to answer questions about your province of residence, your date of birth, your gender and your tobacco use over the past 12 months. You can then customize the term that’s right for you and the coverage amount. From there, you can start your application entirely online. Alternatively, arrange to speak to an accredited insurance advisor to guide you through the insurance-buying process.

Purchasing life insurance online does not need to be overwhelming or difficult. In fact, RBC Insurances makes it easy to assess your needs, get an insurance quote online, and purchase your coverage in just minutes – giving you peace of mind knowing your family is protected.

FAQs about buying life insurance online

Can I get life insurance completely online?

Yes, you can get an RBC Simplified Term Life Insurance policy or RBC Guaranteed Acceptance Life Insurance policy completely online. You simply need to answer questions about your personal profile, health and lifestyle. Some insurance products, however, such as RBC’s Term 100 Life Insurance, are not available to purchase completely online.

How do you get life insurance quickly?

Purchasing life insurance online is quick and easy and will likely not require a medical exam. You can be covered in the time it takes to get a quote, complete an application online, and submit your payment details.

How much does life insurance cost per month?

The cost of life insurance depends on your age, gender, health, risk factors and coverage amount. For example, a policy of $100,000 for a 10-year term would cost a 31-year-old woman $9.22 per month, and a 51-year-old woman $20.95, per month. Increase the coverage to $250,000 and it would cost $11.70 and $34.29 per month.

Is buying life insurance online safe?

Yes, buying life insurance online is safe. Purchase life insurance online from a reputable insurance company and check the policy comes with a a money-back cancellation period (such as 30 days), if you change your mind.

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