Life insurance

In general, most life insurance policies work the same way: in exchange for a fee that you typically pay monthly or annually (your insurance premium), an insurance company provides a certain amount of coverage on your life and will provide a tax-free benefit to your beneficiaries if you pass away while you have coverage.

Learn more about how life insurance works.

The cost of life insurance depends on your needs. If you’re considering term life insurance, you can get a cost estimate pretty quickly with a life insurance quote. Your premiums may be different from another person’s premiums—that’s because premiums are based on many things, including risk factors that are unique to you. Check out I Need To Adjust My Budget, How Can I Get Insurance To Fit?

In general, here’s what will figure into your life insurance cost:

The type of insurance you choose

Term life insurance is intended to cover short-term needs and is more affordable than a permanent life insurance policy that offers lifetime coverage, such as Universal or Whole Life insurance. Some permanent life insurance policies may also have an investment component and legacy-building benefits. See Types of Life Insurance Explained or check out Can I Personalize My Insurance?

How much coverage you buy

A million-dollar policy is going to cost you more than a $250,000 policy (for the same term length).

Your age, health and gender

The younger and healthier you are when you buy life insurance, the less it will cost. And men typically pay more than women do based on life expectancy.

As an example, a 35-year-old female non-smoker can expect to pay around $19.85 per month for a 20-year term life insurance policy worth $350,000, while a 35-year old male non-smoker can expect to pay around $25.78 per month for the same policy.

Your lifestyle

If you drink alcohol or consume marijuana frequently, or enjoy more extreme activities like scuba diving or rock climbing, you will be required to disclose more information and, depending on the specifics, you may pay higher premiums. And, if you smoke or use tobacco products, you will almost certainly pay more for your policy.

Family medical history

If cancer, diabetes or other medical conditions run in your family, this could increase your rates.

Get a quick life insurance quote now to see what a life insurance policy might look like, based on your needs.

Life insurance coverage falls into two broad categories: term and permanent.

Term life insurance provides coverage for a specific number of years and is renewable after the initial term is up, if needed. It is customized to cover short term needs like debts, loans and/or income replacement until your child becomes independent. Term Life Insurance is the most affordable type of life insurance.

Permanent life insurance is designed to cover long term needs such as income to support a disabled dependant, funeral expenses or estate planning. Term 100, Universal and Whole Life Insurance are all different types of permanent coverage.

That depends, but there can be real benefits to getting coverage while you’re young and unattached.

Check out reasons to get life insurance at any age.

If you have life insurance through your employer, you may not be sufficiently covered because it’s only valid during your employment and generally only covers a small amount of lost income – often only one or two times your salary.

We’d recommend you talk to your account manager or your business advisor. We can explain the options available to you so that you can determine a plan that suits your business needs.

Life and disability insurance protections for individuals in your business may be an important tool to include in your financial plan. Additionally, options like our Business Loan Insurance Plan may contribute to how you plan for the financial security of your business.

The first thing you should know is that some types of life insurance are simpler to buy than others. Depending on the type of coverage you want and how much you’re applying for, your application may need to go through underwriting.⁶ This is the process an insurer goes through to evaluate the risk associated with insuring you.

Before we get into underwriting though, here are the routes you can take once you’re ready to buy:

Buying coverage online

If your needs are fairly straightforward, you may be able to get a quote and buy your coverage online. At RBC Insurance, we offer a few online options:

• Term life insurance: Depending on your age, health, the amount of coverage you are applying for and if you’re a Canadian citizen or permanent resident/landed immigrant, you may be able to request a quote and get an instant decision online⁶. If you don’t receive an instant decision, you may need to complete a phone interview. It’s also possible that a paramedical nurse will need to visit you to take your vitals.

• Personal accident insurance: If you’re already an RBC^® client, age 18 to 69, and a Canadian resident, you can buy personal accident insurance online. In fact, your acceptance is guaranteed. Learn more or enrol now⁷.

• RBC Guaranteed Acceptance Life Insurance: If you’re a Canadian citizen or permanent resident/landed immigrant and age 40 to 75, you can buy up to $40,000 of life insurance. There’s no medical exam or health questions to answer. Learn more or get my quote⁸.

Buying coverage through an advisor

Many Canadians buy life insurance with the help of an insurance advisor. At RBC Insurance, our friendly advisors can provide advice to help you make the best decision for you and your family, and help you complete your application with ease. You can call one of our advisors at 1-800-461-1413 or search for one near you. Find a checklist to help you prepare at Can I Personalize My Insurance?

Getting coverage through work

If your employer offers a group life insurance policy, you’ll want to follow up with your HR department or plan administrator. Coverage through an employer is likely capped at an amount that may not be enough for your individual needs. Additionally, benefits such as group life insurance may change in the future. Inquire about your options to maintain the policy if you decide to change jobs.

In most cases, you will need to give information about your lifestyle, health, age, personal and family medical history. You must answer all questions in your application truthfully and accurately since, if you give incorrect or incomplete information, the insurance company can deny, adjust your benefits or void your coverage.

Once you send in your application, it may go through some form of underwriting, although sometimes this isn’t required.

Underwriting is a formal process an insurer goes through to evaluate the level of risk they are taking on by insuring you. It can be very involved or it can be minimal, depending on your situation. For example, you may need to complete a phone interview and/or a medical exam.

• Medical exam: If a medical exam is ordered, a paramedical nurse may come to your house to check your vitals. This could include collecting a urine and blood sample, weighing and measuring you, and taking your blood pressure and pulse.

• Phone interview: If we need more information, you may need to complete a telephone interview. The interviewer may ask personal, financial and medical questions.

The time it takes to hear back varies. In some cases, you may hear back instantly. For example, if you’re under 56, have a good medical history and are applying for less than $1 million in term insurance, you may get an instant response.

In other cases, it could take 3 to 16 weeks to find out if you’re approved, and larger policies may require more time. If you applied with an RBC advisor, you can always reach out to them for an update, and if you applied online you can call 1-800-461-1413.

Once you have your life insurance policy in hand, don’t be afraid to ask your RBC advisor questions—we’re here to help, after all. If something is unclear, it’s in your best interest to understand your coverage. You will also want to store your policy in a safe place.

If you do not receive an instant decision on coverage, you will need to complete a 30 minute interview to review the current state of your health in order to finalize a decision. The 30 minute interview is completed over the phone and an in-person consultation may or may not be required in your home

We understand how stressful it can be to deal with a significant life event like a loved one’s passing. We’re here to give you the support you need and make things as easy as possible. Check out Insurance Claim Essentials.

To file a claim:

1. Locate the insurance policy, if possible. Having the policy number handy when you call will help us give you faster service. If you can’t find it, don’t worry—we can still support you. Check out All Of Your Important Documents. All In One Place.

2. Call us as soon as possible. You will need to make your claim within a certain period of time. This varies by coverage type and is outlined in your policy.

3. Complete and send in all required documentation. We will guide you through the claims process and the documentation you need. What you need to make a claim depends on the type of coverage you have. In general, you will need to provide:

   • a completed claim form
   • the death and birth certificate
   • possibly other documentation.

4. If you are claiming on a life insurance policy worth up to $100,000, you may be able to use express service if the policy:

   • has been continuously in force for ten or more years
   • has a named beneficiary (a policy with an Estate listed as the beneficiary is not eligible).