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Benefits of Permanent Life Insurance

With this type of coverage, you have the dual security of knowing that while your premiums will never change, in the event of your death, your beneficiaries will receive the policy benefit tax-free.

Lifetime Coverage

With permanent life insurance, you are covered for life—your coverage does not end after a certain term.

Guaranteed Premiums

Premiums are guaranteed when you buy your coverage and remain unchanged for the life of your policy.

Tax-Free Benefit3

Permanent life insurance provides a tax-free death benefit to your beneficiaries when you pass away.

Types of Permanent Insurance

Offers up to $25,000 of guaranteed coverage for Canadians from age 50 to age 75.

If you’re age 50 to 75, RBC Guaranteed Acceptance Life Insurance is an easy way to help reduce debt, relieve the financial burden of final expenses and more.

Highlights

  • Convenient: Get an online quote instantly and apply online
  • Guaranteed Acceptance: Canadian citizens and permanent residents/landed immigrants age 50 to 75 can buy coverage1
  • No Medical Exam: There is no medical exam or health questions to answer
  • Coverage Available: $5,000 to $25,000 (in $5,000 increments)2
  • Lifetime Coverage: Coverage is for life and cannot be cancelled or changed; your premiums will never increase2

  • Tax-Free Benefit: Your beneficiary or estate receives the death benefit tax-free3
  • Accidental Death Benefit: In the case of accidental death, your beneficiary could receive additional coverage of five times the life insurance benefit amount4
  • 30-Day Review Period: If you change your mind within 30 days, we will give you a full refund and cancel your policy
Compare the Plans

The Right Choice If You

  • Are a Canadian citizen
  • Are a permanent resident/landed immigrant who have been in Canada over 12 months
  • Are age 50 to age 75

What's Covered?

Death Benefit

If you pass away, your policy can provide a tax-free3 death benefit in the amount of your coverage to your beneficiaries or estate.2

Accidental Death Benefit4

In case of death from accidental causes before age 85, your beneficiary will receive five times the Basic Coverage.

Compassionate Advance

If your coverage has been in place for more than two years and you are diagnosed with a terminal illness and have 24 months or less to live, you could receive a percentage of the death benefit (a compassionate advance) while you are still alive.

Summary of Exclusions5

Your coverage is subject to the following exclusions:

  • We will not pay a death benefit or refund premiums if the policy is declared void due to material omission, misrepresentation or fraud.

  • If you die during the first two years of coverage, the death benefit is limited to a refund of the sum of 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 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
  • Poisoning
  • 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
  • War

The information above is intended as a summary only. Please see the sample policy for complete terms and conditions, including benefits and exclusions.

About Your Premiums

  • Your premiums are guaranteed to stay the same
  • At age 95, you no longer have to pay any premiums
  • Pay by monthly pre-authorized debit, annually or with a credit card if you buy online

Offers guaranteed premiums for life and flexible coverage amounts.

Term 100 life insurance can be an ideal way to protect your family’s financial future or to help your heirs pay the capital gains tax on assets (such as a cottage) you leave to them.

Highlights

  • Coverage Available: $50,000 and up
  • Lifetime Coverage: Coverage is for life and cannot be cancelled or changed; your premiums will never increase
  • Tax-Free Benefit: Your beneficiary or estate receives the death benefit tax-free3
Compare the Plans

The Right Choice If You

  • Are a Canadian citizen
  • Are a permanent resident/landed immigrant who have been in Canada over 12 months
  • Are age 18 to age 85

To apply, you will most likely need to complete a medical exam and answer health questions.

What's Covered?

Death Benefit

If you pass away while your coverage is in effect, your policy provides a tax-free3 death benefit in the amount of your coverage to your beneficiaries or your estate.

Optional Coverage5
  • Joint First-to-Die Option: Covers up to two family members—the benefit is payable on the first death, at which point coverage ends. The survivor also has the option to apply for a new policy without evidence of insurability, as long as he or she does so prior to the policy anniversary nearest his or her 70th birthday.

  • Joint Last-to-Die Option: Covers up to two family members—the death benefit is payable on the last death, at which point coverage terminates. Joint-last-to-die coverage is often ideal for estate planning purposes.

  • Term 10 or 20 Rider: Add a single-life or joint-life rider to provide additional coverage for yourself, or to insure someone else, such as your spouse.

  • Children's Term Rider: Provides coverage for your natural or legally adopted children.

  • Accidental Death Benefit Rider: Pays an additional death benefit if you die as a direct result of an accident.

  • Total Disability Waiver of Premium Benefit Rider: After being totally disabled for six consecutive months, we will waive premium payments and policy fees while you are totally disabled.

  • Payor Death and Disability Waiver of Premium Benefit Rider: If someone else pays your premiums and he or she dies we will waive monthly premiums while policy is in force or if he or she becomes and remains totally disabled for six consecutive months, we will waive the payment of cost of insurance deductions, including the policy fee and rider premiums while this person is totally disabled.

The information above is intended as a summary only. Please see a sample riders policy for complete details on rider and optional coverage terms and conditions, including benefits and exclusions.

Summary of Exclusions5

Your coverage is subject to the following exclusions:

  • During the application process, if we are given incorrect or incomplete information regarding age, gender, health, lifestyle or smoking habits, we reserve the right to deny or adjust your benefit.

  • During the first two years of coverage, if death is due to suicide, then no benefit is payable.

Other exclusions may apply depending on optional benefits chosen. The information above is intended as a summary only. Please see a sample policy for complete details on terms and conditions, including benefits and exclusions.

About Your Premiums

  • Your premiums are guaranteed to stay the same for life
  • At age 100, you no longer have to pay any premiums
  • Pay by monthly pre-authorized debit or annually

Permanent Life Insurance FAQs

Find answers to your questions about our permanent life insurance products.

The answer to this question depends on several factors, including your salary, whether you have other life insurance, your financial obligations and more. Generally, 5-7 times your current net income is recommended. However, your specific needs could be less than or greater than this recommendation.

If you smoke, you may still apply for coverage. You will qualify for non-smoker rates only if you have not used any form of tobacco products within the last 12 months. If you occasionally smoke or if you have quit smoking in the last 12 months, you are considered a smoker.

Once the policy is issued, you can apply for a change to non-smoker rates if you have gone a full 12-month period without using any form of tobacco products. Contact us and apply for a switch to non-smoker rates. You will have to complete a medical questionnaire and we will send out a nurse to collect some medical evidence, most likely a urinalysis. Once our underwriters have approved your application and your eligibility is confirmed, you will be switched to non-smoker rates. 

You can apply for coverage if you are a Canadian citizen or permanent resident/landed immigrant who has been in Canada over 12 months and are from age 18 to age 85.

You can apply for coverage if you are a Canadian citizen or permanent resident/landed immigrant who has been in Canada over 12 months and from are age 50 to age 75.

Note: Acceptance is guaranteed as long as you meet the eligibility requirements above.

You will most likely need to complete a medical exam and answer several health questions.

There is no medical exam required, and you will not be asked any questions about your health when you apply.

Yes. A licensed RBC Insurance® advisor will ask you a series of questions that will indicate whether you could be eligible for a preferred rate. Whether or not you will qualify depends on the amount of coverage you are applying for, your family history, your health and lifestyle factors, whether you participate in dangerous sports, and more.

Preferred rates do not apply to RBC Guaranteed Acceptance Life Insurance.

Yes, your rates are guaranteed for life as long as you continue to pay your premiums on time.

Yes, your rates are guaranteed for life as long as you continue to pay your premiums on time.

You will pay premiums up to age 100, at which point coverage continues, but payments cease.

You will pay premiums up to age 95, at which point coverage continues, but payments cease.

You may pay for your policy on a monthly or annual basis.

  • If you are paying by monthly pre-authorized debit, we will automatically debit your account when you are approved for coverage.
  • If you select to pay on an annual basis, we will send out an invoice for the annual premium.

As premiums become due under the policy, we will give you 31 days after your premium due date to make your premium payment. If we do not receive your payment during this time, the insurance will terminate and your coverage ends.

You may pay for your policy on a monthly or annual basis.

  • If you are paying by monthly pre-authorized debit, we will automatically debit your account when you are approved for coverage.
  • If you select to pay on an annual basis, we will send out an invoice for the annual premium.
  • If you buy online, a credit card (in the name of the applicant) will be required.

As premiums become due under the policy, we will give you 31 days after your premium due date to make your premium payment. If we do not receive your payment during this time, the insurance will terminate and your coverage ends.

To apply for RBC Guaranteed Acceptance Life Insurance:

To apply for Term 100 life insurance:

You can also get a quote online for Term 100 life insurance.

Yes, provided that you request the cancellation in writing. In addition, you have 10 days to review the policy after it is mailed to you; if you cancel during that time, we will refund the premiums you have paid. Any time after that, you can cancel your insurance and you only pay the premium for the time you were covered.

Yes, provided that you request the cancellation in writing. In addition, you have 30 days to review the policy after it is mailed to you; if you cancel during that time, we will refund the premiums you have paid. Any time after that, you can cancel your insurance and you only pay the premium for the time you were covered.

Our RBC Guaranteed Acceptance and Term 100 life insurance plans provide lifetime coverage with guaranteed premiums. In the event of your death, we will make a tax-free payment to your beneficiary or estate1. (Note that probate fees are applicable if you have not designated a beneficiary and the proceeds of your policy become part of your estate.) 

One of the differences between term life insurance and permanent life insurance is that term life insurance covers you for 10 to 40 years, whereas permanent life insurance provides coverage for your lifetime. Term life insurance is also generally lower in cost when compared to permanent coverage. 

Our RBC Guaranteed Acceptance and Term 100 life insurance plans offer these benefits and more:

  • Insurance coverage for life
  • Premiums are guaranteed to remain unchanged as long as the policy is in effect
  • Your beneficiary receives the death benefit tax-free3

Your coverage is effective the date you apply for coverage provided your application is received by us within 15 days from the date the application is signed and we receive the initial premium payment.

Your coverage ends on the earlier of:

  • The date of your death
  • The date you request to cancel your life insurance in writing
  • The date you stop paying your insurance premiums (you have a 30-day grace period after payment is due)

Please contact us for complete details.

You are covered under the policy once you are approved and we receive the first premium payment. There should also be no change in your health during the review of your application. If there is any change in your health during our review of your application, please notify our office immediately.

Your coverage ends on the earlier of:

  • The date of your death
  • The date you request to cancel your life insurance in writing
  • The date you stop paying your insurance premiums (you have a 30-day grace period after payment is due)

You can apply to reduce or increase your coverage at any time. The minimum amount of coverage you may request is $10,000, and the maximum amount is subject to our underwriting rules. A reduction in your coverage is subject to $50,000, the minimum coverage amount. Your premiums will also be updated based on the new amount of insurance. Increases in coverage will require new medical evidence and are subject to approval.

You cannot increase your coverage. However, you may request that we reduce your coverage at any time, provided all premiums are paid to the effective date of the reduction.

Your coverage is subject to the following exclusions:

  • If you die during the first two years of coverage, the death benefit is limited to a refund of the sum of 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
  • Poisoning
  • 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
  • War

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.

The information above is intended as a summary only. Please see the additional disclosure information or a sample policy for complete terms and conditions, including benefits and exclusions.

Yes. Your coverage is subject to the following exclusions:

  • During the first two years of coverage, if death is due to suicide, then no benefit is payable.
  • During the application process, if we are given incorrect or incomplete information regarding age, gender, health, lifestyle or smoking habits, we reserve the right to deny or adjust your benefit.
  • Other exclusions may apply depending on optional benefits chosen.

The information above is intended as a summary only. Please see a sample policy for complete details on terms and conditions, including benefits and exclusions.

1)
Acceptance is guaranteed if you are from age 50 to age 75 and are a Canadian Citizen or Permanent Resident/landed immigrant who has been in Canada for more than 12 months.
2)
For the first two years of your policy, the benefit is limited to the return of premiums paid to the date of your death (unless death is the result of an accident before your 85th birthday. In this case, we will pay the Accident Death Benefit). After two years, coverage is in effect for life and will not decrease. Premium payments end at age 95, but you are covered for life. Coverage will end if you cancel your policy or do not pay your premiums as due.
3)
Note that probate fees are applicable if you have not designated a beneficiary and the proceeds of your policy become part of your estate.
4)
Accidental Death Benefit is subject to the terms and conditions of the policy.
5)
The information above is intended as a summary only. Please see the additional disclosure information, sample policy or sample rider policy for complete terms and conditions, including benefits and exclusions.