RBC Insurance Term Renewal Questions and Answers

What is the offer?

The renewal offer is our way of addressing a known industry concern for clients who terminate a term policy due to the large increase in premium at renewal. Clients who currently have a Term 10 policy approaching renewal in 2016 will be mailed 1 of 2 renewal offer letters (samples below) promoting an exciting offer of either simplified underwriting or a non-simplified offer (fully underwritten) with a 5% term renewal savings. The offer is specific to the client.

What determines who receives which offer letter?

The face amount on the client’s original offer letter and the insured’s attained age.

Is the offer available to clients who currently have a Term 10 policy however are not in year 10 of their policy?

No, the client must be in year 10, and must have received 1 of the 2 offer letters.

What if my client’s life insurance needs have changed and they require a different coverage amount to what is stated in their offer letter? Can they apply for a different coverage amount?

Yes, your client can apply for a different coverage amount than what is shown in their offer letter. Their underwriting criteria will be based on their age and face amount.

Are LIRD forms required for the offer?

Yes, LIRD forms are required when replacing the existing policy.

When will my client receive an offer letter? Will advisors receive a copy of the offer letter?

Clients will receive their offer letter 120 days (4 months) prior to their renewal date. Advisors will be sent a copy of the letter. The offer is valid for 6 months from the date of the offer letter. In addition, your client will also receive the standard renewal notice 60 days prior to the policy renewal date.

If a client is declined for the offer, can they keep their old policy?

Yes. If the client is not approved, they may keep their existing Term 10 policy at the premium shown in the policy contract, or they could exercise their conversion option.

What are the application types for the two options under the renewal offer?

Simplified Offer with customized underwriting (11 questions)

For clients looking for coverage under $500,000 and/or who are under age 56 and need coverage from $500,000 to $999,999, please complete the Term 10/20 Renewal Life Insurance Application.

Preferred classes are not available with the simplified offer.

5% Savings (Fully Underwritten) offer

For clients 56 and older looking for coverage $500,000 and greater and/or those under 56 looking for coverage $1,000,000 and above please complete the Life Insurance Application.

For the 5% savings offer, please ensure the “Term Renewal Savings Plan” tick box is checked off on page 5. Both applications can be found on the forms page of the Sales Resource Centre.

Does the client have to apply for an RBC YourTerm 10? Or can it be any term length between 10 and 40 years?

The client may apply for any term length they are eligible for based on their age.

Does the suicide and contestability period start over when the client replaces their policy with an RBC YourTerm policy?

Yes, as this is a brand new application, the suicide and contestability period will start over.

Is a client more likely to be declined with a simplified offer as opposed to a fully underwritten application?

No it’s not: a misconception about the Simplified Offer is that it is inferior underwriting when in fact it provides customized underwriting based on how the client answers the 11 health and lifestyle questions.

When submitting a simplified offer application, does the advisor order the age and amount requirements?

No the advisor does not need to order. If necessary, the underwriter reviewing the application will order applicable requirements to make their decision.

Can clients combine other RBC Insurance^® discounts with the 5% savings offer?

No, only one discount can be applied to a policy.