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International Travel Health Insurance: What You Need to Know

You’ve booked the flights, locked in hotels, and packed enough sunscreen for a month in the sun. But here’s the question that too many Canadians skip: What happens if you end up in a hospital instead of on a beach?

While nearly half of Canadians rank unexpected travel expenses among their top vacation worries, 23 per cent still say they’d travel abroad without travel health insurance to save money. Among Gen Z travellers (ages 18–28), that number nearly doubles to 47 per cent, according to the Travel Health Insurance Association of Canada.

Travel health insurance (also called travel medical insurance) is your passport to peace of mind. It’s the safety net that covers emergencies without draining your savings, whether it’s a sprained ankle, food poisoning, or an airlift from a remote island. This article explains what international travel health insurance covers, what’s excluded, common mistakes, and how to choose the right plan, so you can relax on your dream vacation.

Key takeaways

  • International travel health insurance offers essential protection for travellers. Provincial health plans offer minimal coverage outside Canada, and foreign medical bills can reach tens of thousands of dollars, often requiring payment upfront.
  • Comprehensive medical coverage goes beyond hospital bills. Coverage can include emergency dental care, medical evacuation, and 24/7 assistance.
  • Check what travel coverage you may already have. Employer health coverage or credit card coverage may be limited by trip length, age, activities, or coverage amount, so you may need to buy extra protection.
  • Understand any exclusions and requirements. Knowing what’s covered and not covered by your travel health insurance policy can prevent denied claims and costly surprises.
  • Avoid common mistakes. Complete your medical questionnaire, buy before departure, report any health changes, contact your insurer before getting care unless it’s an emergency, and follow the claims process closely.

What is international travel health insurance?

International travel health insurance (also called travel medical insurance) covers emergency health care expenses when you’re travelling outside of Canada. Like other types of insurance — home, life, or car — it’s designed to protect you if something goes sideways.

International travel health insurance can help pay for hospital stays, doctor visits, diagnostic tests, prescriptions, and even medical evacuation. Most plans offer millions in coverage for good reason: foreign hospital stays, or emergency surgery could come with a five- or six-figure price tag, often requiring payment upfront. Without this critical coverage, your dream vacation could quickly become a financial nightmare.

The bottom line: Travel health insurance may cost a little. But being uninsured could cost you everything.

What does international travel medical insurance typically cover?

Coverage varies, but comprehensive plans typically include:

  • Hospital stays
  • Doctor or clinic visits
  • Emergency medical treatment
  • Diagnostic tests
  • Prescription medications
  • Emergency dental care
  • Medical evacuation (e.g., air ambulance to Canada) or repatriation

High-risk activities (scuba, skydiving, etc.) are often excluded unless you buy specialized insurance.  Most insurers cover stable pre-existing medical conditions and, in some cases, you may need to complete a medical questionnaire. This is why disclosing medical information accurately is crucial when purchasing travel medical insurance. And remember, international travel medical insurance is for emergencies only, not for routine checkups or ongoing care.

How does international travel medical insurance work?

No one plans to get sick or injured while travelling, but if it happens, here’s how the process typically works:

  • You get sick or injured: Food poisoning, a fall, or worse, you need medical attention ASAP.
  • You contact your insurer: Depending on the terms and conditions of your policy, you may have to call before seeking treatment so the insurer can direct you to approved care and confirm what’s covered.
  • You receive treatment: Payment is made either through direct billing or by paying upfront. Either way, keep all medical receipts.  
  • You file a claim: Submit your claim form and receipts for reimbursement up to your coverage limit.

Why is international travel health insurance important?

If you plan to travel outside Canada — even for a quick trip to the U.S. — you should buy travel health insurance before you leave. It’s strongly recommended by the Government of Canada, as all it takes is one unexpected injury or illness to rack up a big bill.

Here’s why international travel insurance is an important item to pack:

Provincial and territorial health plans cover very little outside Canada: Depending on where you live, your government health insurance plan may pay a small amount, or nothing at all. Government health insurance plans also don’t pay upfront for health care outside the country and may exclude essentials like ambulance services, evacuations, or private hospital fees.

Learn more about what your provincial health care plan covers.

Medical care abroad can be expensive: In the United States, fixing a broken leg can cost up to US$7,500 while a three-day hospital stays averages around US$30,000. If you need to be evacuated by air? Expect to pay US$25,000 or more.

24/7 global support: Most providers, like RBC Insurance, offer 24/7 emergency assistance. They can help find trusted medical care, communicate with health professionals, and coordinate billing and treatment, wherever you are in the world.

Family coverage options: Many plans protect your entire travel group, giving you peace of mind if you’re travelling with children or older relatives.

Some destinations require travel insurance: Certain countries may require proof of travel medical insurance. Without it, you may be denied entry.

Customizable: You can choose a single-trip plan for a specific vacation, or a multi-trip annual plan if you frequently cross borders throughout the year.

Employer coverage or credit card coverage may have limited protection: Short trip limits, age restrictions, or low dollar caps are common.

Peace of mind: You’re supposed to be sipping a piña colada, not stressing about “what-ifs.” International travel medical insurance equips you to handle whatever life throws your way.

Key features of travel health insurance

A comprehensive travel health insurance plan does more than cover doctor’s visits — it’s a robust support system. Here are the essentials to look for:

Emergency medical coverage

From sudden illnesses to slip-and-fall accidents, international travel health insurance covers the costs of hospital stays, doctor visits, diagnostic tests, emergency treatment, and prescription medications.

Emergency dental care

Crack a tooth on a coconut candy in the Caribbean? Many plans include emergency dental treatment for sudden pain or injury. Coverage is usually capped, so check the limit before biting into anything too crunchy.

Emergency transportation

If local hospitals can’t provide the care you need, your insurance should cover transport to the nearest facility with appropriate medical services or repatriate you back to Canada if necessary. For example, RBC Insurance’s emergency transportation benefit can cover the cost of one-way economy airfare, a stretcher, a qualified medical attendant, or even an air ambulance, depending on the situation.

Pre-existing medical conditions coverage

Some insurers, like RBC Insurance, offer coverage for stable pre-existing conditions, which is critical for older adults or anyone managing chronic health issues. For complete coverage details, limitations, and exclusions, refer to your policy document.

24/7 emergency assistance

Whether you need a referral to a local clinic, translation support, or help navigating the health care system, your insurer’s emergency team should be there, day or night.

Repatriation in case of death

If you pass away while abroad, many policies cover the costs of preparing and returning your remains to Canada, including transportation and documentation fees.

How to choose the right international travel health insurance

Picking a plan isn’t quite as straightforward as booking a hotel, which is why it’s important to consider the following factors before you buy:

1. Understand your eligibility

Before anything else, make sure you qualify for coverage. Most international travel health insurance plans have basic requirements, such as:

  • Being a Canadian resident
  • Purchasing coverage before you leave your province
  • Valid government health insurance plan (e.g., OHIP) for the entire duration of your trip.

Some plans have age limits, but that doesn’t mean you’re out of luck. RBC Insurance offers plans for all age groups, including the TravelCare® Package for travellers aged 65 and up.

2. Assess your needs

To ensure your coverage reflects your itinerary, consider the following:

  • How long will you be away? Ensure you have coverage in place for the full duration of your trip.
  • Who are you travelling with? If you’re travelling with family or in a group, look for plans that insure everyone under the same policy.
  • Where are you going? Destinations with high health care costs, limited or lower-quality medical facilities may call for more comprehensive coverage.
  • What are you planning to do? Activities like hiking in remote areas or high-risk sports may be excluded. Check your coverage ahead of time.  
  • What’s your current health status? If you’re pregnant, managing a medical condition, or have recently received treatment or testing, pay close attention to the policy’s pre-existing medical condition clauses, stability requirements and exclusions.

3. Understand the policy

Every policy is different, so know exactly what you’re buying. Consider:

  • Are there age restrictions?
  • Are you required to answer medical questions?
  • Are stable pre-existing medical conditions covered, and under what terms?
  • What are the coverage limits and exclusions?
  • What is the deductible (if any)?
  • Will you have to pay out of pocket and claim later, or is direct billing available?
  • Does the policy still apply if you travel to a country under a Canadian travel advisory?
  • What happens if your medical condition changes before your departure? Do you need to update the insurer?
  • What documentation is needed to file a claim?

If it’s not crystal clear, ask the insurer. A few questions now can save confusion (and cost) later.

Check your existing coverage

Employer health coverage, credit cards, or other personal plans might help protect you, but often may have limits on trip length (e.g., 30 days), age eligibility, or activities.

What sort of things are excluded from international travel health insurance?

Exclusions can be the reason why many claims are denied. Understanding them now can help prevent costly surprises later. Here are some common ones to watch out for:

Unstable pre-existing medical conditions

Many insurers require that your condition be stable for a set period before your departure date (e.g., 90 to 180 days). A medication change, new symptom, or recent treatment could result in a medical claim not being paid.  

Tip: Ask your insurer exactly how they define terms like pre-existing medical condition, treatment, and stable. Complete a medical questionnaire, if required, so they can match you with a policy that truly covers you.

Travel medical insurance may cover unexpected pregnancy complications, but usually only up to a certain point (e.g., first 30 weeks) or as defined by your policy. Routine prenatal care, delivery, and care for newborns are typically not covered.

Tip: Confirm what’s covered before you travel and carry a copy of your prenatal records in case of emergency.

If an accident or illness occurs while you’re under the influence of alcohol, drugs, or other intoxicants, your claim may be denied.

High-risk activities

Planning to parasail, scuba dive, or do something adrenaline-fueled? Most policies don’t cover injuries or accidents from high-risk activities unless you’ve added extra coverage.

Tip: Make a list of activities you plan to do and ask your insurer if they’re covered.

Elective or non-emergency care

Most travel medical insurance plans don’t cover routine checkups, cosmetic procedures in foreign countries, or ongoing treatments for chronic conditions.

Tip: If you have a pre-existing medical condition or need regular treatment, ask for a copy of the insurance policy confirming what’s covered.

Canadian Government travel advisories

Even if a destination was safe when you booked, a new advisory before you travel could change what’s covered.

If you travel to a country under a Canadian government advisory (e.g., “Avoid non-essential travel” or “Avoid all travel”), your coverage may be reduced or denied entirely if your medical expenses are related to the travel advisory that was in place when you departed on your trip.

Tip: Check the Government of Canada’s Travel Advice and Advisories website before booking and again before departure. If you’re heading to a high-risk area, ask your insurer about any limits or exclusions that may apply to you or your travel group.

Common mistakes to avoid with international travel health insurance

Even the best medical plan won’t help if you stumble over the details of your policy. Here are some common mistakes travellers make with travel health insurance.

1. Relying solely on credit card, employer health coverage, or provincial coverage

Flash your health card, or lean on your work benefits — and you’re covered, right? Not so fast. These plans often have short trip limits, age restrictions, or gaps in coverage for things like emergency evacuation and pre-existing medical conditions. Top-up coverage is often necessary.

2. Not correctly answering the medical questionnaire 

This is the number one reason claims get denied. If you don’t complete the medical questionnaire correctly, the insurer could void your policy for misrepresentation.

3. Not reporting changes to your health before departure

If your health changes before your coverage begins and you don’t tell your insurer, you may no longer meet the original policy conditions.

4. Submitting a claim past the coverage date 

Prolonged your vacation but forgot to extend your insurance? Any medical costs you rack up after your coverage expires likely won’t be reimbursed, no matter how valid the claim.

5. Overlooking the fine print

Assuming you’re covered for everything is one of the easiest errors to make. Read your policy carefully, especially the exclusions, deductibles, and claim procedures, and ask your insurer questions.

6. Not following the claims process

Failing to follow your provider’s instructions, keeping receipts and documentation, or submitting the proper paperwork could delay or void your claim.

Before you travel

A little prep can make a big difference in a medical emergency:

Pack your paperwork: Bring your insurance policy details, proof of coverage, and emergency contacts.

  • Know the claim process: Read your policy so you know exactly what to do and save your insurer’s 24/7 emergency number in your phone so it’s always within reach.
  • Do you have a backup payment method: Some health care providers may require upfront payment before treatment, even if you’re insured.

Protect yourself with international travel health insurance

Medical emergencies can happen anywhere — and cost far more than you might expect. Whether you catch a nasty virus or break a bone, travel medical insurance can help foot the bill and connect you with 24/7 medical assistance.

By understanding your eligibility, knowing what’s covered (and what’s not), avoiding common blunders, and prepping before you leave, you’re setting yourself up for a safe, hassle-free trip.

Don’t wait until you’re in a hospital bed in another country to wonder if you’re covered. Plan ahead, protect your health, and your wallet, so you can focus on making memories.

Get a quote for international travel health insurance online before you pack your bags.

FAQs about International Travel Health Insurance

Can I extend my emergency medical coverage if I extend my trip?

Yes, you can extend emergency medical coverage depending on your policy. You must contact your insurer before your coverage expires, pay any additional premiums, and in some cases, get approval if you’ve had a medical issue while away.

Will my provincial health care cover me for international travel?

The short answer? No. Provincial plans may cover a small portion of costs abroad, but it’s rarely enough to protect you financially, and provincial health care plans don’t pay upfront. Many hospitals require immediate payment before providing treatment, and in some countries, no insurance could mean no treatment.

What insurance do I need for international travel?

Consider buying a comprehensive plan that can handle the big-ticket emergencies: hospitalization, treatment abroad, medical evacuation to Canada or the nearest facility, and repatriation in case of death.

If you have pre-existing medical conditions, understand any stability or deductible requirements, and make sure your coverage is high enough to avoid catastrophic out-of-pocket costs.

RBC Travel Insurance

If you need help during your trip for a medical or other travel emergency, help is available 24/7.

Learn More

*Home and auto insurance products are distributed by RBC Insurance Agency Ltd. and underwritten by Aviva General Insurance Company. In Quebec, RBC Insurance Agency Ltd. Is registered as a damage insurance agency. As a result of government-run auto insurance plans, auto insurance is not available through RBC Insurance in Manitoba, Saskatchewan and British Columbia.

This article is intended as general information only and is not to be relied upon as constituting legal, financial or other professional advice. A professional advisor should be consulted regarding your specific situation. Information presented is believed to be factual and up-to-date but we do not guarantee its accuracy and it should not be regarded as a complete analysis of the subjects discussed. All expressions of opinion reflect the judgment of the authors as of the date of publication and are subject to change. No endorsement of any third parties or their advice, opinions, information, products or services is expressly given or implied by Royal Bank of Canada or any of its affiliates.

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TORONTO, May 20, 2025 — As the workforce continues to diversify and evolve, tailored benefit plans are key to healthier, more resilient teams. Yet new survey data from RBC Insurance highlights how coverage gaps—driven by accessibility, affordability, and awareness—are impacting employee well-being, particularly for women, individuals managing chronic conditions, and younger generations entering the workforce.

  • Three-quarters (75%) of women say they want or need benefits that specifically support women’s health.
  • Those managing chronic physical (31%), developmental (31%), or mental health-related disabilities (28%) report that coverage amounts are often insufficient to cover their needs, resulting in out-of-pocket costs higher than they can justify.
  • One in five (20%) working Canadians aged 18-34 are unsure of the employee benefits coverage available to them.

“These findings are a call to action for employers and benefits providers alike, as there’s a real opportunity to close the gap between what employees need and what they receive,” says Tony Bruin, Head of Group Benefits at RBC Insurance. “The more an employer tailors and prioritizes more inclusive and relevant benefit solutions, the more they can truly support their employees.”

At a time when costs are rising for employees and employers, companies can start optimizing their group benefits by looking closely at their specific workforce characteristics and tailoring plans to ensure equitable and inclusive coverage.

Addressing the coverage needs of women

Despite making up nearly half of the workforce in Canada, women’s needs are misaligned when it comes to employer group benefits. Seventy-five per cent of women say they want or need benefits that specifically support women’s health, including services for fertility and menopause. In addition, women are more likely than men to report:

  • Insufficient coverage amounts prevent them from accessing the care they need (31% versus 22%)
  • Difficulty securing appointments (25% versus 17%)
  • Rising costs and affordability (68% versus 49%) or mental health issues like anxiety or depression (33% versus 17%) as barriers to improving their well-being
Chronic conditions and the cost of care

More than half (54%) of employees or their spouses are living with a chronic condition, making access to care a critical component of overall well-being. However, the survey revealed that rising costs and affordability continue to be a major barrier, preventing individuals from fully utilizing their benefits or seeking the care they need.

Six in ten (58%) Canadians cite affordability as a key factor impacting their well-being, and those with chronic conditions are more likely than other groups to identify rising costs and affordability issues.

Those managing physical (31%), developmental (31%), or mental health-related disabilities (28%) report that coverage amounts are often insufficient, resulting in out-of-pocket costs higher than they can justify.

Younger workers face gaps in relevance and awareness

Many in the Gen Z and Millennial generations, aged 18-34, feel that the coverage amounts offered by group benefits are insufficient and do not adequately meet their needs. While they are the most interested in making lifestyle changes to enhance their financial health, manage stress, and achieve work-life balance, many report barriers such as affordability (59%), lack of motivation (44%), and busy schedules (40%).

In addition, there is a lack of awareness about coverage, with 20% of 18-34-year-olds unsure of their benefits, compared to just 13% of those aged 35-54 and 12% of those aged 55+. To better support a younger workforce, employers can consider enhancing the relevance and communication of their benefit offerings.

“As the workforce becomes more diverse across age, gender, and health needs, employers and group benefits providers have an opportunity to reimagine what modern support looks like,” says Bruin. “When employers focus on investing in more inclusive, tailored benefits, they can boost employee satisfaction while building healthier, more engaged teams.”

To learn more, visit rbcinsurance.com/group-benefits.

About the RBC Insurance Survey
These are some of the findings from an Ipsos poll conducted on behalf of RBC Insurance. For this survey, a sample of 1,000 working Canadians ages 18-65 were surveyed online via the Ipsos I-Say panel between January 29-31, 2025. The precision of online polls is measured using a credibility interval. In this case, the results are accurate to within ± 3.8 percentage points, 19 times out of 20, of what the results would have been had the entire population of working adults aged 18-65 in Canada been surveyed. Credibility intervals will be wider for smaller subsets of the population.

About RBC Insurance
RBC Insurance® offers a wide range of life, health, home, auto, travel, wealth, group benefits, annuities and reinsurance advice and solutions, as well as creditor and business insurance services to individual, business and group clients. RBC Insurance is the brand name for the insurance operating entities of Royal Bank of Canada, Canada’s biggest bank and one of the largest in the world, based on market capitalization. RBC Insurance is among the largest Canadian bank-owned insurance organizations, with 2,700 employees who serve nearly 5 million clients globally. For more information, please visit rbcinsurance.com.

Media contact:

Cody Medwechuk, RBC Insurance Corporate Communications

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If you were suddenly faced with a serious injury or illness, would you be able to care for and support yourself and your family? That’s the question we all need to answer when considering critical illness insurance and disability insurance.

Having the right coverage can mean a world of difference. It could be the factor that tips the balance between financial stability and all-consuming worry during an already-stressful time.

But what exactly are the differences between critical illness insurance and disability insurance? Is one better than the other, or are both necessary? This quick primer can help you understand the unique benefits of each type of policy and when one or both will best suit your needs.

Key takeaways

  • Critical illness insurance provides a one-time lump-sum benefit if you’re diagnosed with a serious health condition, such as life-threatening cancer, a heart attack, or a stroke.
  • Disability insurance helps with monthly income replacement if you can’t work for a period of time due to injury or illness.
  • Though critical illness insurance and disability insurance may overlap with coverage in some cases, they tend to provide protection for different illnesses and scenarios. They also have distinct exclusions and waiting periods.
  • Depending on your individual situation, one or both types of insurance might provide the best coverage for you and your family.

Understanding critical illness insurance

What is it?

Imagine you’re diagnosed with a serious illness, such as life-threatening cancer or experience a heart attack or a stroke. You may require specialized treatments, time off work, accommodations in your home, or help with self-care. These new needs may place a hefty financial burden on you and your family when you’re trying to recover.

While other health insurance policies may cover some of your medical expenses or help with income replacement, critical illness insurance directly pays out a one-time, tax-free lump sum. It’s designed to alleviate the financial stress associated with severe illness. And you can use the benefit however you want, such as paying for medications or treatments not covered by your other insurance, continuing to contribute to your retirement savings while you’re off work, upgrading your house or vehicle to suit your new needs, paying for childcare, or even taking a vacation to recharge. Critical illness insurance acts as a safety net and gives you flexibility during a challenging time.

Types of illnesses covered

The illnesses protected by your critical illness insurance will depend on the insurer and the plan you purchase. Typically, these conditions are commonly covered:

  • Life-threatening cancer
  • Heart attack
  • Stroke
  • Kidney failure
  • Major organ transplant
  • Coronary artery bypass surgery
  • Multiple sclerosis

More comprehensive plans may also provide coverage for conditions such as dementia, including Alzheimer’s disease, Parkinson’s disease, blindness, deafness, and even severe burns, paralysis, and loss of limbs. Before purchasing a policy, make sure you understand which illnesses are covered by the plan and any exclusions or limitations (such as waiting periods or survival periods before you’re eligible to claim your benefit).

Exclusions

Many plans will not pay out a lump sum or refund any premiums if you experience an illness, death, or other loss that results directly or indirectly from one of these situations:

  • Self-inflicted injury, attempted suicide, or suicide.
  • Intentional use of any drug (not prescribed by a doctor), intoxicant, narcotic, or poisonous substance.
  • Participation in a war or a hostile action, insurrection, or civil commotion.
  • Attempt to commit or commission a crime, whether you’re charged or not.
  • Operation of any land, water, or air conveyance that’s operated by any means other than your own muscle (think cars, motorboats, planes) while you’re under the influence of any drug, intoxicant, narcotic, or poisonous substance, including alcohol. For alcohol, the limit begins when the concentration of alcohol in 100 millilitres of blood exceeds 80 milligrams.

Speak with your insurer to confirm the details of your specific policy.

Understanding disability insurance

What is it?

If an illness or injury keeps you from working, disability insurance will typically pay out a monthly benefit to replace a portion of your lost income (often around 60 per cent to 85 per cent). Whether you experience a short-term disability, such as an injury that requires months of leave, or a long-term disability that means you can’t work for years, disability insurance acts like a consistent paycheque to help you cover your living expenses and medical bills.

Types of disabilities covered

As with critical illness insurance, the types of illnesses and disabilities covered will depend on your insurer and the plan you choose. You may receive protection in the following instances.

  • Total disability: When you’re unable to perform the essential duties of your occupation due to an illness or injury.
  • Residual disability: When your illness or disability prevents you from performing some of your essential work duties, resulting in a 20 per cent or more loss in earnings. You will eventually recover.
  • Partial disability: When you can’t perform any of the essential duties of your regular occupation and you experience a 20 per cent or more loss in earnings. You will eventually be able to go back to work.

Exclusions

Much like critical illness insurance, disability insurance will typically not cover any disability that results, whether directly or indirectly, from these situations:

  • An act or accident of war.
  • Normal pregnancy or childbirth (except complications).
  • Any injury or illness that occurs before your policy comes into effect or while your policy is not in force.

Some plans will also have these exclusions:

  • Any self-inflicted injury, whether or not it’s intentional, that occurs while you’re intoxicated.
  • Your use of any drug, unless it’s prescribed or directed by your physician.
  • Any suicide attempt or other intentionally self-inflicted harm.
  • Infections related to AIDS and HIV.
  • Any injury that occurs while you are committing or attempting to commit a crime, even if you’re not charged with that crime.
  • Subjective conditions, such as fibromyalgia and chronic fatigue syndrome.
  • Mental and nervous disorders, such as depression, anxiety, stress, and burnout.

Schedule a chat with your insurer if you’re not clear on the exclusions in your policy (or any policy you’re considering buying).

Key differences between critical illness insurance and disability insurance

Before you can decide whether to purchase critical illness insurance, disability insurance, or both, it’s important to understand how each type of coverage works and the ways each can provide you with financial stability during a health crisis. This chart can help you understand the primary differences between critical illness insurance and disability insurance.

Critical illness insuranceDisability insurance    
Triggering eventYou can make a claim if you’re diagnosed with one of the conditions or illnesses listed in your policy.
 
Your ability (or inability) to work is not a factor.		You can make a claim for benefits if you cannot complete some or all of the tasks required for your job due to injury or illness.
 
The focus is on the illness or injury hindering your ability to do your job, rather than the specific diagnosis.
Waiting periodYou will often need to live beyond the survival period (a.k.a. a set amount of time beyond your diagnosis, usually 30 days) before you are eligible for benefits.You will have to wait the elimination period (a set number of days after you receive your diagnosis) before you begin getting payments.
Nature of benefitsYou’ll receive a one-time lump sum, which, depending on your plan, can range from $10,000 to $3 million.Designed to replace a portion of your lost income while you cannot work, this benefit is often paid out each month and lasts for as long as you remain disabled or until the end of your benefit period.
Duration of benefitsIn most cases, your policy will end once you receive your one-time lump-sum payment. However, some insurance providers have riders that cover a second critical illness and payment.You will receive ongoing payments for the duration of your disability, from a few months to many years, up to the limit defined in your policy. Some plans will pay for a disability that lasts until retirement age, while others have a benefit period of two, five, or 10 years.
Use of payoutYou can use the lump-sum benefit however you want: to pay medical bills, upgrade your home, contribute to your RRSPs, try alternative treatments, or take a vacation to unwind.These benefits are designed to cover living expenses while you cannot earn your regular income. While you can use the payments however you want, the amount you receive at one time is smaller and best for maintaining financial stability during a period of low or no income.
Who can applyAnyoneEmployed and self-employed people
Age eligibilityCoverage often ends between the ages of 65 and 75 years; although, some providers offer permanent insurance.Coverage often ends between the ages of 55 and 69 years.
PremiumsYour premiums are based on the number of illnesses covered, the lump-sum payout amount you choose, your age, how long the coverage will be in place, and your overall health status.Your premiums will depend on the disability types covered, your monthly benefit amount, how long you will be eligible to receive benefits, and your occupation.
TaxabilityTax-freeIt’s tax-free income if you paid for it, and it’s taxable income if your employee paid for insurance for you.

How to best choose between critical illness insurance and disability insurance

Whether disability insurance or critical illness insurance will be right for you will depend on several factors, such as your occupation, financial situation, health risks, and more.

  • Financial needs and responsibilities: Take a look at your financial obligations, from mortgage payments to support of dependants. Critical illness insurance can help with large immediate expenses. Disability insurance is designed to provide ongoing income.
  • Health risks: Critical illnesses are common.Each year, around 247,000 Canadians will be diagnosed with cancer, and 108,000 will experience a stroke. Critical illness insurance could be an invaluable safety net if you’re affected by one of these conditions one day. If you have a job that increases your risk of injury or certain illnesses, then disability insurance may be the option for you.
  • Employment situation: Anyone is eligible for critical illness insurance; whereas, you must be employed or self-employed to purchase disability insurance. If you work for a company or organization, make sure you’re familiar with your employee benefits. For example, you may have comprehensive disability coverage, but no critical illness insurance. In that case, you might want to purchase your own critical illness policy.
  • Budget: In an ideal world, we’d all have premium disability and critical illness insurance coverage. In the real world, these plans cost money. It’s important to balance your coverage needs with the premiums that you can afford.
  • Dependants and family responsibilities: You may have a wide variety of people (children, aging parents, or family members with disabilities) and pets relying on your income. Critical illness insurance can provide flexibility with a larger payout if you’re diagnosed with a serious condition, while disability insurance can help to cover your day-to-day expenses.

Is it better to combine both types of insurance?

Even though both are types of health insurance, critical illness insurance provides different benefits than disability insurance. Critical illness insurance is designed to immediately alleviate financial strain if you’re diagnosed with a serious illness or condition. Disability insurance covers a broad range of illness and injuries that can affect your ability to work and helps with day-to-day expenses. You may want to combine both types of insurance if you’re looking for well-rounded coverage that protects you in many circumstances. Speak with an insurance advisor to help you make the decision that best suits your lifestyle. They can help you balance your current and long-term needs, consider your risks and budget, and help you choose the right policies to protect you and your family in all scenarios.

RBC Disability Insurance

Help ensure your expenses are covered if you get sick or injured

Learn More

*Home and auto insurance products are distributed by RBC Insurance Agency Ltd. and underwritten by Aviva General Insurance Company. In Quebec, RBC Insurance Agency Ltd. Is registered as a damage insurance agency. As a result of government-run auto insurance plans, auto insurance is not available through RBC Insurance in Manitoba, Saskatchewan and British Columbia.

This article is intended as general information only and is not to be relied upon as constituting legal, financial or other professional advice. A professional advisor should be consulted regarding your specific situation. Information presented is believed to be factual and up-to-date but we do not guarantee its accuracy and it should not be regarded as a complete analysis of the subjects discussed. All expressions of opinion reflect the judgment of the authors as of the date of publication and are subject to change. No endorsement of any third parties or their advice, opinions, information, products or services is expressly given or implied by Royal Bank of Canada or any of its affiliates.

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TORONTO, January 14, 2025 — Amid a currently challenging economy, Canadians may be feeling some uncertainty about the future. While many are clear that they want to financially protect their families after they’re gone, they also admit they aren’t actively planning to achieve these goals, according to a recent survey by RBC Insurance.

The majority (82%) of Canadians feel it is important to ensure their family receives money quickly to avoid paying out-of-pocket for a funeral or other end-of-life expenses. As many as 76 per cent want to ensure their estate is taxed as little as possible to leave their family a larger inheritance, and 70 per cent want to pass money to their family.

However, just 15 per cent of Canadians have a plan for how their money and belongings will be transferred to loved ones after they’re gone, which only increases to 24 per cent for current retirees. Meanwhile, less than four in ten (38%) retirees have set aside money or have life insurance to pay for final expenses. Retirees are also the least likely to be knowledgeable about various types of insurance policies, overlooking the potential that could help achieve their goals.

“We often hear people say, ‘I had no idea how hard it would be’,” says Selene Soo, Director, Product Management at RBC Insurance, referring to the process of managing a loved one’s assets after they have died. “This is followed quickly by: ‘If I had known, I would have helped to prepare their finances differently.’ It’s hard to hear because we know there are ways to make it easier.”

Open conversations and working with professionals early to develop strategies based on your goals and unique situation can alleviate stress for you and your family later.

Relieve the admin burden for your loved ones.

While over half (53%) of Canadians confess they don’t want to be a burden on their families when they’re gone, many are surprised by the administrative and financial weight of managing a loved one’s estate. Talking with your family and experts in advance can help them navigate complex paperwork, such as closing off bank accounts, paying debts, filing a last income tax return and maintaining property or other assets until they can be sold.

Ensure money is available as soon as your family needs it.

If not properly planned for, end-of-life costs may leave your family paying out-of-pocket. While money may be available, it is often tied up in probate – a legal process that can take several months or more than a year, while a court decides what happens to your financial assets and debts after you’re gone and who is authorized to act on your behalf. Insurance products like life insurance and segregated funds automatically bypass probate if you name a beneficiary. This means your loved ones will receive any inheritance quickly, so they can be ready for financial surprises that may come their way. It also means you can minimize potential probate-related fees, making sure more money gets to your loved ones.

Stay in control of who receives your money.

Help your family avoid uncertainty and waiting periods by naming beneficiaries – the people who will receive the benefits of your policy or account when you die. This is especially helpful if you have complex family dynamics, own a business or if there is no written will. Identified beneficiaries receive money quickly and directly, avoiding the risk of needing to pay off debts first.

Regardless of your age or wealth, creating a plan with the help of loved ones and professionals will ensure that your finances are properly structured to achieve your legacy goals. As you consider your unique needs, talk to an advisor to simplify the experience and help your family when you’re gone. For more information, visit What Is Estate Planning? | RBC Insurance.

About the RBC Insurance Survey
These are some of the findings from an Ipsos poll conducted on behalf of RBC Insurance. For this survey, a sample of 1,250 Canadians aged 18+ was surveyed between July 26 to 29, 2024. Included within this sample is an oversample of 250 Canadians aged 45-75 years old with a reported household income of $150k+. The precision of online polls is measured using credibility interval. In this case, the results are accurate to within +/- 3.4 percentage points, 19 times out of 20, of what the results would have been had the entire population of Canadians 18+ been surveyed. Credibility intervals will be wider for smaller subsets of the population.

About RBC Insurance
RBC Insurance® offers a wide range of life, health, home, auto, travel, wealth, group benefits, annuities and reinsurance advice and solutions, as well as creditor and business insurance services to individual, business and group clients. RBC Insurance is the brand name for the insurance operating entities of Royal Bank of Canada, Canada’s biggest bank and one of the largest in the world, based on market capitalization. RBC Insurance is among the largest Canadian bank-owned insurance organizations, with 2,600 employees who serve 4.8 million clients globally.

Media contact:

Jana Lepp, RBC Insurance Corporate Communications

*Home and auto insurance products are distributed by RBC Insurance Agency Ltd. and underwritten by Aviva General Insurance Company. In Quebec, RBC Insurance Agency Ltd. Is registered as a damage insurance agency. As a result of government-run auto insurance plans, auto insurance is not available through RBC Insurance in Manitoba, Saskatchewan and British Columbia.

This article is intended as general information only and is not to be relied upon as constituting legal, financial or other professional advice. A professional advisor should be consulted regarding your specific situation. Information presented is believed to be factual and up-to-date but we do not guarantee its accuracy and it should not be regarded as a complete analysis of the subjects discussed. All expressions of opinion reflect the judgment of the authors as of the date of publication and are subject to change. No endorsement of any third parties or their advice, opinions, information, products or services is expressly given or implied by Royal Bank of Canada or any of its affiliates.

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Term life insurance provides protection that is cost-effective and easy to understand. As part of a complete and thorough financial plan, term life insurance ensures that your family can rely on your insurance plan’s financial security if something happens to you.

Key takeaways

  • Term life insurance is a type of coverage with a limited term, typically 10 to 40 years.
  • Term life insurance is an affordable and accessible kind of protection that often costs less than a whole life insurance plan and does not usually require a medical exam (depending on your age and the amount you’re applying for).
  • Often, term life insurance plans can be renewed (at a higher premium) for as long as you require coverage, or they can be converted into permanent life insurance.
  • Term life insurance policies do not have a cash value or pay dividends on invested premiums.

What is term life insurance?

Term life insurance offers coverage for a specific amount of time (a “term”), often between 10 and 40 years. It’s available to people between the ages of 18 and 70 years and is an affordable and easy-to-understand kind of insurance plan. With term life insurance, you pay a monthly or annual premium for your chosen term. Should you you pass away during the term, your beneficiary will receive a death benefit payout.

When your term ends, your coverage will be automatically renewed at a higher premium until you cancel the policy. Once you cancel your policy, your beneficiaries are no longer eligible to receive the death benefit. 

Because each individual is unique, term life insurance can be customized to best suit your coverage needs. The cost is based on factors including your age, sex, health, lifestyle, smoking status, the coverage amount, and the length of the term you select. Often, term life insurance will not require you to undergo a medical exam to qualify for a policy, depending on your age and the policy amount you’re applying for.

How does term life insurance work?

Term life insurance works by purchasing a policy for a set term—such as 10, 20, or 30 years— that gives you coverage ranging from $50,000 to $25 million, depending on your needs and your budget. You pay monthly or yearly premiums, and as long as you continue to pay those, your coverage will remain in place during that period. Should you die during your term, a death benefit will be paid out to your named beneficiary/beneficiaries. If no beneficiary/beneficiaries are named on your policy, the death benefit will become part of your estate.

At the end of your term, your policy will be renewed (at a higher cost due to your increase in age), but you may have the option to convert all or part of your term life insurance policy into whole life insurance. It’s wise to speak with a licensed life insurance advisor to understand what policy options best meet your needs.

When does term life insurance coverage end?

Your term life insurance coverage can end:

  • On the date of your death.
  • On the day you submit a request, in writing, to cancel your policy.
  • On the day you stop paying your premiums.

How much does term life insurance cost?

The cost of term life insurance is unique to each individual. Factors such as your age, sex, health and lifestyle, smoking status, chosen term length, and the amount you choose to be insured for all contribute to determining the cost of your policy. You can customize your plan to fit your specific needs. For example, you may choose to be covered until your children reach adulthood, or you might purchase coverage for as long as you plan to be paying off your mortgage. Once you’ve decided on a plan, your monthly or annual payments, depending on your insurer, will remain the same over the course of your term. Upon renewal, payments increase, according to your age, and are then once again guaranteed for the length of the new term.

How is term life insurance different from permanent life insurance?

Term life insurance offers flexible coverage periods that provide protection for specific terms, typically between 10 and 40 years. Permanent life insurance is insurance for when, not if, you die. It covers you for your entire lifetime and pays a death benefit to your beneficiary or beneficiaries at the time of your death. 

Some permanent life insurance policies come with an investment feature that aims to increase your plan’s cash value and an opportunity to earn dividends. Though these policies have a guaranteed cash value component and a chance to earn dividends, the dividends are not guaranteed.

Read our term life insurance versus permanent life insurance article to learn more about the differences between the two.

Advantages and disadvantages of term life insurance

Your unique needs and goals will help determine which type of life insurance is right for you and your loved ones. Term life insurance comes with a list of appealing advantages. However, it’s wise to consider the disadvantages, too.

Advantages of term life insurance

  • It’s affordable: Term life insurance is generally less costly than whole life insurance. This is because your coverage period is tied to a specific, limited time period, and your policy does not include a cash value component.
  • It’s easy to understand: Because there’s no investment component, term life insurance plans are straightforward and simplified.
  • It offers flexibility: Terms can be anything from 10 to 40 years of coverage to provide protection that best suits your needs.
  • It can be convertible: Your term life insurance policy can be converted to a permanent policy without providing updated medical information.
  • Guaranteed renewal: At the end of your policy, your term life insurance is guaranteed to be renewed, as laid out in your policy schedule. The length of the renewal can vary between insurers and policies, and there is usually no requirement for additional medical information.

Disadvantages of term life insurance

  • The policies don’t have a cash value: Because premiums are applied directly to your coverage, there’s no additional cash value for investment or balance to borrow against.
  • Renewing can be costly: Term life insurance is guaranteed to be renewed at the end of your policy term. The renewed premium will increase with your age, and any renewed premium increases will be laid out in your policy schedule.

Who is term life insurance for?

Term life insurance policies are designed to provide temporary coverage that meets the needs of those seeking protection for a defined, limited amount of time. It’s also for people not planning to use their life insurance policy as an investment vehicle. This kind of life insurance is a great choice if:

  • Your spouse or your child depends on you financially.
  • You want to take advantage of a lower rate, while you’re still young and healthy.
  • You have debts that need to be paid off in the event of your death.

How to choose the term life insurance policy that’s best for you

If you’re ready to select a term life insurance policy, make sure you choose an insurance provider that offers:

  • A reputation for stability and trustworthiness.
  • Experienced advisors who are available to schedule a conversation with you and advise you on your specific needs.
  • An online application option for those who don’t have time or aren’t able to visit an insurance provider’s location.

How much term life insurance do I need?

The amount of term life insurance you need depends on your specific circumstances. If you’re trying to calculate the right amount of coverage, consider:

  • Your current financial obligations.
  • The financial needs of your dependents, including support for housing and post-secondary education.
  • Additional life insurance or financial products you may already have (for example, through your employer).

Consulting with a qualified life insurance advisor can help you determine the right coverage.

How do I get a term life insurance quote?

There’s no standard, one-size-fits-all price, since your unique situation will determine the amount of your term life insurance policy quote. You can access RBC Insurance’s online Life Insurance Calculator for an estimate or speak to a qualified advisor to get your personalized quote.

Term life insurance FAQ

Here are answers to some of the most frequently asked questions about term life insurance policies.

Is there a cash value in term life insurance?

With a term life insurance plan, you pay lower premiums that go directly toward your coverage. There is no cash value. Only the higher premiums paid into a participating whole life insurance plan offer a cash value and the additional value that stems from investment dividends.

Can I borrow money from my term life insurance?

Because there is no cash value or investment component tied to term life insurance policies, you cannot borrow against your insurance.

What if I live beyond my term?

Once your initial term ends, you can renew (at a higher premium, due to your increased age) or convert your policy to a permanent life insurance plan. If you live beyond your term without renewing, your beneficiary or beneficiaries will not receive the death benefit payout.

How much does term life insurance cost?

Your unique circumstances (for example, your age, sex, lifestyle, income, coverage amount, and health status) will determine the cost of your plan. Try our Life Insurance Calculator for insight into how much term life insurance coverage you may need and how much your personalized plan will cost.

Do I need a medical exam for term life insurance?

Depending on your term life insurance policy, a medical exam may not be required. Your insurer will have the right to request additional medical information based on the answers you provide in your policy application.

Can I switch my term life insurance policy to a whole life insurance policy?

Some term life insurance policies can be converted into whole life insurance policies, depending on the term life insurance policy you select and your contract with your insurance company. RBC Insurance term life insurance policies do offer this choice. Ask your insurance advisor for guidance if you’re interested in this option.

Your financial situation is unique to you and your family. Connecting with a licensed insurance advisor can help you ask the right questions and develop a personalized plan that will ensure you make the best choice.

*Home and auto insurance products are distributed by RBC Insurance Agency Ltd. and underwritten by Aviva General Insurance Company. In Quebec, RBC Insurance Agency Ltd. Is registered as a damage insurance agency. As a result of government-run auto insurance plans, auto insurance is not available through RBC Insurance in Manitoba, Saskatchewan and British Columbia.

This article is intended as general information only and is not to be relied upon as constituting legal, financial or other professional advice. A professional advisor should be consulted regarding your specific situation. Information presented is believed to be factual and up-to-date but we do not guarantee its accuracy and it should not be regarded as a complete analysis of the subjects discussed. All expressions of opinion reflect the judgment of the authors as of the date of publication and are subject to change. No endorsement of any third parties or their advice, opinions, information, products or services is expressly given or implied by Royal Bank of Canada or any of its affiliates.

Share This Article

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Term life insurance provides protection that is cost-effective and easy to understand. As part of a complete and thorough financial plan, term life insurance ensures that your family can rely on your insurance plan’s financial security if something happens to you.

Key takeaways

  • Term life insurance is a type of coverage with a limited term, typically 10 to 40 years.
  • Term life insurance is an affordable and accessible kind of protection that often costs less than a whole life insurance plan and does not usually require a medical exam (depending on your age and the amount you’re applying for).
  • Often, term life insurance plans can be renewed (at a higher premium) for as long as you require coverage, or they can be converted into permanent life insurance.
  • Term life insurance policies do not have a cash value or pay dividends on invested premiums.

What is term life insurance?

Term life insurance offers coverage for a specific amount of time (a “term”), often between 10 and 40 years. It’s available to people between the ages of 18 and 70 years and is an affordable and easy-to-understand kind of insurance plan. With term life insurance, you pay a monthly or annual premium for your chosen term. Should you you pass away during the term, your beneficiary will receive a death benefit payout.

When your term ends, your coverage will be automatically renewed at a higher premium until you cancel the policy. Once you cancel your policy, your beneficiaries are no longer eligible to receive the death benefit. 

Because each individual is unique, term life insurance can be customized to best suit your coverage needs. The cost is based on factors including your age, sex, health, lifestyle, smoking status, the coverage amount, and the length of the term you select. Often, term life insurance will not require you to undergo a medical exam to qualify for a policy, depending on your age and the policy amount you’re applying for.

How does term life insurance work?

Term life insurance works by purchasing a policy for a set term—such as 10, 20, or 30 years— that gives you coverage ranging from $50,000 to $25 million, depending on your needs and your budget. You pay monthly or yearly premiums, and as long as you continue to pay those, your coverage will remain in place during that period. Should you die during your term, a death benefit will be paid out to your named beneficiary/beneficiaries. If no beneficiary/beneficiaries are named on your policy, the death benefit will become part of your estate.

At the end of your term, your policy will be renewed (at a higher cost due to your increase in age), but you may have the option to convert all or part of your term life insurance policy into whole life insurance. It’s wise to speak with a licensed life insurance advisor to understand what policy options best meet your needs.

When does term life insurance coverage end?

Your term life insurance coverage can end:

  • On the date of your death.
  • On the day you submit a request, in writing, to cancel your policy.
  • On the day you stop paying your premiums.

How much does term life insurance cost?

The cost of term life insurance is unique to each individual. Factors such as your age, sex, health and lifestyle, smoking status, chosen term length, and the amount you choose to be insured for all contribute to determining the cost of your policy. You can customize your plan to fit your specific needs. For example, you may choose to be covered until your children reach adulthood, or you might purchase coverage for as long as you plan to be paying off your mortgage. Once you’ve decided on a plan, your monthly or annual payments, depending on your insurer, will remain the same over the course of your term. Upon renewal, payments increase, according to your age, and are then once again guaranteed for the length of the new term.

How is term life insurance different from permanent life insurance?

Term life insurance offers flexible coverage periods that provide protection for specific terms, typically between 10 and 40 years. Permanent life insurance is insurance for when, not if, you die. It covers you for your entire lifetime and pays a death benefit to your beneficiary or beneficiaries at the time of your death. 

Some permanent life insurance policies come with an investment feature that aims to increase your plan’s cash value and an opportunity to earn dividends. Though these policies have a guaranteed cash value component and a chance to earn dividends, the dividends are not guaranteed.

Read our term life insurance versus permanent life insurance article to learn more about the differences between the two.

Advantages and disadvantages of term life insurance

Your unique needs and goals will help determine which type of life insurance is right for you and your loved ones. Term life insurance comes with a list of appealing advantages. However, it’s wise to consider the disadvantages, too.

Advantages of term life insurance

  • It’s affordable: Term life insurance is generally less costly than whole life insurance. This is because your coverage period is tied to a specific, limited time period, and your policy does not include a cash value component.
  • It’s easy to understand: Because there’s no investment component, term life insurance plans are straightforward and simplified.
  • It offers flexibility: Terms can be anything from 10 to 40 years of coverage to provide protection that best suits your needs.
  • It can be convertible: Your term life insurance policy can be converted to a permanent policy without providing updated medical information.
  • Guaranteed renewal: At the end of your policy, your term life insurance is guaranteed to be renewed, as laid out in your policy schedule. The length of the renewal can vary between insurers and policies, and there is usually no requirement for additional medical information.

Disadvantages of term life insurance

  • The policies don’t have a cash value: Because premiums are applied directly to your coverage, there’s no additional cash value for investment or balance to borrow against.
  • Renewing can be costly: Term life insurance is guaranteed to be renewed at the end of your policy term. The renewed premium will increase with your age, and any renewed premium increases will be laid out in your policy schedule.

Who is term life insurance for?

Term life insurance policies are designed to provide temporary coverage that meets the needs of those seeking protection for a defined, limited amount of time. It’s also for people not planning to use their life insurance policy as an investment vehicle. This kind of life insurance is a great choice if:

  • Your spouse or your child depends on you financially.
  • You want to take advantage of a lower rate, while you’re still young and healthy.
  • You have debts that need to be paid off in the event of your death.

How to choose the term life insurance policy that’s best for you

If you’re ready to select a term life insurance policy, make sure you choose an insurance provider that offers:

  • A reputation for stability and trustworthiness.
  • Experienced advisors who are available to schedule a conversation with you and advise you on your specific needs.
  • An online application option for those who don’t have time or aren’t able to visit an insurance provider’s location.

How much term life insurance do I need?

The amount of term life insurance you need depends on your specific circumstances. If you’re trying to calculate the right amount of coverage, consider:

  • Your current financial obligations.
  • The financial needs of your dependents, including support for housing and post-secondary education.
  • Additional life insurance or financial products you may already have (for example, through your employer).

Consulting with a qualified life insurance advisor can help you determine the right coverage.

How do I get a term life insurance quote?

There’s no standard, one-size-fits-all price, since your unique situation will determine the amount of your term life insurance policy quote. You can access RBC Insurance’s online Life Insurance Calculator for an estimate or speak to a qualified advisor to get your personalized quote.

Term life insurance FAQ

Here are answers to some of the most frequently asked questions about term life insurance policies.

Is there a cash value in term life insurance?

With a term life insurance plan, you pay lower premiums that go directly toward your coverage. There is no cash value. Only the higher premiums paid into a participating whole life insurance plan offer a cash value and the additional value that stems from investment dividends.

Can I borrow money from my term life insurance?

Because there is no cash value or investment component tied to term life insurance policies, you cannot borrow against your insurance.

What if I live beyond my term?

Once your initial term ends, you can renew (at a higher premium, due to your increased age) or convert your policy to a permanent life insurance plan. If you live beyond your term without renewing, your beneficiary or beneficiaries will not receive the death benefit payout.

How much does term life insurance cost?

Your unique circumstances (for example, your age, sex, lifestyle, income, coverage amount, and health status) will determine the cost of your plan. Try our Life Insurance Calculator for insight into how much term life insurance coverage you may need and how much your personalized plan will cost.

Do I need a medical exam for term life insurance?

Depending on your term life insurance policy, a medical exam may not be required. Your insurer will have the right to request additional medical information based on the answers you provide in your policy application.

Can I switch my term life insurance policy to a whole life insurance policy?

Some term life insurance policies can be converted into whole life insurance policies, depending on the term life insurance policy you select and your contract with your insurance company. RBC Insurance term life insurance policies do offer this choice. Ask your insurance advisor for guidance if you’re interested in this option.

Your financial situation is unique to you and your family. Connecting with a licensed insurance advisor can help you ask the right questions and develop a personalized plan that will ensure you make the best choice. Speak with an RBC Insurance advisor by calling 1-888-925-0946 or have an advisor call you. Want to speak with an advisor in person? Find an advisor or a store.

RBC Life Insurance

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*Home and auto insurance products are distributed by RBC Insurance Agency Ltd. and underwritten by Aviva General Insurance Company. In Quebec, RBC Insurance Agency Ltd. Is registered as a damage insurance agency. As a result of government-run auto insurance plans, auto insurance is not available through RBC Insurance in Manitoba, Saskatchewan and British Columbia.

This article is intended as general information only and is not to be relied upon as constituting legal, financial or other professional advice. A professional advisor should be consulted regarding your specific situation. Information presented is believed to be factual and up-to-date but we do not guarantee its accuracy and it should not be regarded as a complete analysis of the subjects discussed. All expressions of opinion reflect the judgment of the authors as of the date of publication and are subject to change. No endorsement of any third parties or their advice, opinions, information, products or services is expressly given or implied by Royal Bank of Canada or any of its affiliates.

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TORONTO, December 2, 2024 — RBC Insurance launched the next step in its client experience evolution. As of December 1, 2024, clients (and their advisors) applying for RBC YourTerm® life insurance will receive immediate notification if they are approved. With no delay in the response, and policy documentation available within 5 days, clients and advisors can move forward with confidence. RBC YourTerm® applications are eligible up to $2 million, up to and including age 50, with no requirement for medical interviews or exams (e.g., blood tests).

RBC Insurance believes in the value of insurance to support communities through difficult life moments, and recognizes that the process of purchasing insurance is cumbersome and complex, making it difficult for advisors to provide great client experiences. Through a relentless focus on simplifying insurance for everyone, RBC Insurance is rapidly advancing its digital and client service capabilities. Recent advancements include:

  • Launching a new Express Team in November 2023 to significantly expedite the underwriting process for Term insurance applications under $2 million with no requirement for medical exams. Cycle times were cut by 50% for fully underwritten Term applications.
  • Accelerating the underwriting process for Term, Disability and Par Whole Life Insurance. RBC Insurance provided an option for advisors to complete the Health & Lifestyle Questionnaire online, as of August 2024. This removed the need for eligible clients to participate in telephone interviews and paramedical appointments, which can add days or weeks to receive an approved policy.

For more information: Life Insurance │ RBC Insurance

About RBC Insurance
RBC Insurance® offers a wide range of life, health, home, auto, travel, wealth, group benefits, annuities and reinsurance advice and solutions, as well as creditor and business insurance services to individual, business and group clients. RBC Insurance is the brand name for the insurance operating entities of Royal Bank of Canada, Canada’s biggest bank and one of the largest in the world, based on market capitalization. RBC Insurance is among the largest Canadian bank-owned insurance organizations, with 2,600 employees who serve 4.8 million clients globally.

Media contact:

Jana Lepp, RBC Insurance Corporate Communications

*Home and auto insurance products are distributed by RBC Insurance Agency Ltd. and underwritten by Aviva General Insurance Company. In Quebec, RBC Insurance Agency Ltd. Is registered as a damage insurance agency. As a result of government-run auto insurance plans, auto insurance is not available through RBC Insurance in Manitoba, Saskatchewan and British Columbia.

This article is intended as general information only and is not to be relied upon as constituting legal, financial or other professional advice. A professional advisor should be consulted regarding your specific situation. Information presented is believed to be factual and up-to-date but we do not guarantee its accuracy and it should not be regarded as a complete analysis of the subjects discussed. All expressions of opinion reflect the judgment of the authors as of the date of publication and are subject to change. No endorsement of any third parties or their advice, opinions, information, products or services is expressly given or implied by Royal Bank of Canada or any of its affiliates.

Share This Article