RBC® Guaranteed Acceptance Life Insurance
This overview is provided to help you understand some key terms of the RBC Guaranteed Acceptance Life Insurance plan. This overview does not contain all of the provisions of the plan and is not a contract or an offer to provide insurance. If you choose to apply, you may request a sample policy from us before the policy is issued.
If and when your policy is issued, complete insurance coverage details will be contained in your policy, and the terms and conditions of your policy will take precedence over any information in this document. Some reductions, exclusions and limitations may apply to your coverage.
If a policy is issued to you, you will have thirty days from the day you receive your policy to examine its provisions. If you are not satisfied, you can return it to RBC Life Insurance Company and any premium paid will be refunded. You may also cancel your policy at any time after that 30-day period; however, we will not refund the premiums paid.
RBC Guaranteed Acceptance Life Insurance Coverage
RBC Guaranteed Acceptance Life Insurance is an affordable permanent plan with guaranteed premiums for Canadian citizens and permanent residents/ landed immigrants between 40 and 75 years of age. There are five benefit amounts to choose from:
Premiums are based on your age, sex and smoker status at time of application.
Coverage includes three benefits: Death benefit, Accidental Death benefit and a Compassionate Advance.
If you have had this life insurance for at least two years when you die, we will pay the beneficiary the Death benefit. Subject to the terms and conditions of the policy.
If you die within two years from the date coverage began, the Death benefit will be limited to a refund of the sum of the premiums paid, without interest, unless you die from injuries caused by an accident before your 85th birthday. In this case, we will pay the Accidental Death benefit described below. Subject to the terms and conditions of the policy.
Accidental Death benefit
The Accidental Death benefit is 5 times the amount of the Death benefit.
If you die from injuries caused only by an accident before your 85th birthday, we will pay the beneficiary the Accidental Death benefit, instead of the Death benefit, as long as the death occurs within 90 days of the accident. Subject to the terms and conditions of the policy
If you die after your 85th birthday, we will only pay the Death benefit.
The Compassionate Advance is up to 50% of the Death benefit.
If you have had this life insurance for at least two years and you have less than 12 months to live, we will pay you up to 50% of the Death benefit. However, we may pay you a different amount of the Compassionate Advance if you did not make any of your payments when they were due. In this case, we will look at the amount you owe us and then adjust the amount of the Compassionate Advance. If the policy has been reinstated, the Compassionate Advance feature is not available until two years from the last reinstatement.
We must receive a letter from you asking us to pay the Compassionate Advance. We must also receive details of the terminal illness from a doctor who is licensed in Canada. The doctor's information must meet our approval before we pay the Compassionate Advance.
We will reduce the amount of any Death Benefit or Accidental Death Benefit by the amount of the Compassionate Advance plus interest, compounded at a rate we determine.
When you claim the Compassionate Advance:
- You may not cancel this Policy;
- You must continue to pay all premiums due;
- You may not collaterally assign or change the ownership of this Policy without our written consent; and
- You may not change the Death Benefit.
Summary of Exclusions and Limitations
Coverage is subject to a number of exclusions and limitations. The following is only a summary:
If you die during the first two years of coverage, we will refund any premiums paid to us, without interest, unless you die as a result of an accident before your 85th birthday (in this case, we will pay the Accidental Death Benefit). We will not pay the death benefit if you commit suicide within two years of any reinstatement. We will refund any premiums paid to us.
We will not pay a Death benefit or refund premiums if the policy is declared void due to material omission, misrepresentation or fraud.
We will not pay the Accidental Death benefit if you die as a result of:
- Natural causes, illness or disease
- Committing suicide
- Committing or attempting to commit a criminal act
- Operating a motor vehicle while your blood alcohol level is more than the legal limit when the accident occurs
- An illness or disease related to chronic use of alcohol
- Taking a drug not as it is prescribed
- Injuries where there is no visible contusion
- Flying in any airplane, helicopter, or any other aircraft while you are a pilot or member of a crew
When your life insurance begins
Your life insurance begins on the later of:
- the policy date;
- the date on which the first premium is received at our office; or
- the date you receive the policy contract (or if you reside in Quebec, the date we approve your application without modification).
You must pay for your life insurance by the date your first premium is due and every month or year after, depending on how often you choose to make your payments. The amount you pay for this life insurance will stay the same until the anniversary following your 95th birthday. On this anniversary, you do not have to make any more payments. You will remain insured for the Death benefit and the Compassionate Advance until you die.
If any of your payments are returned by your bank, we will charge you a service fee.
Non-smokers enjoy lower premiums for the RBC® Guaranteed Acceptance Life Insurance plan.
In the past 12 months have you used any form of:
- Tobacco, other than one large cigar per month?
- Betel nuts or leaves more than once per month?
- E-cigarettes, water-pipe, nicotine products or smoking cessation products?
If “yes” smoker rates will apply.
You may request your coverage be changed to a non-smoker contract provided:
- We offer Non-Smoker premium rates at the time of your request.
- You submit evidence we consider satisfactory as to the smoking habit of the Life Insured, including our then current Smoking Questionnaire. The Life Insured must meet our definition of a Non-Smoker at the time of the request.
When we will contest the validity of the policy
We have the right to contest the validity of the policy, or the payment of the Death benefit or any other policy benefits, if you or any life insured under the policy have incorrectly stated, misrepresented or failed to disclose a material fact in the application for insurance, or in any written or electronic statements or answers provided as evidence of insurability.
If we receive wrong information
We will consider all of the information on any documents provided by you or the person who is insured to be true.
During the application process, if we are given incorrect or incomplete information regarding age, gender, or smoking habits, we reserve the right to deny or adjust your benefit.
Other terms and conditions apply.
RBC Guaranteed Acceptance Life Insurance is underwritten by RBC Life Insurance Company. If you have any questions, please call 1-877-879-0042.