Who Can Apply for This Insurance Policy?
This Insurance Policy is the Right Choice if You:
What's covered under this insurance plan?
Death benefit: A tax-free death benefit in the amount of your coverage to your beneficiaries or estate will be provided after your death.
Accidental death benefit: If you have been diagnosed with a terminal illness and have 12 months or fewer to live, you may be eligible for a portion of the death benefit. At the same time, you are still alive if your coverage has been in force for more than two years and you have been diagnosed with a terminal illness.
Summary of exclusions
Your coverage has the following exclusions:
Fraud, omission of material, and misrepresentation will deny you from receiving any premiums or paying the death benefit.
About Your Premiums
Your premiums are guaranteed and will stay the same.
After age 95, you will no longer have to pay any premiums.
Pay monthly or annually by a pre-authorized debit card or with a credit card if you buy online.
RBC Client: Safeguard Your Family Against A Sudden And Unexpected Injury
An affordable, convenient, and flexible coverage to help protect yourself and your near and dear ones.
Advantages of personal accident insurance
Easy qualification:Personal accident insurance is the ideal alternative if you do not qualify for any other insurance protection plans.
Premiums for personal accident insurance are typically lesser, unlike other insurance protection policies.
Tax-free death benefit:Your beneficiaries will get a tax-free payout if you die in an accident while covered by the plan.
Details of the Plan
Personal Accident Protection Plan
Suppose you or your spouse are an RBC Insurance client. In that case, personal accident insurance can assist day-to-day cover expenditures and help your loved ones maintain their quality of life in the event of a fatal accident.
Highlights of the plan:
Coverage Amount Available: $50,000 up to $250,000
Extremely Affordable: Premiums start as incredibly low as $4.75 per month.
Very Convenient: To apply for this plan, you do not need a medical or physical exam.
Risk-free: If you change your mind and cancel the plan within 30 days, we will provide a full refund.
Inflation Adjustment: Every two years, the coverage amount increases by 5%
Easy to apply: Guaranteed acceptance if you're an RBC customer, age 18 to age 69, and a resident of Canada.
The Right Plan If You
Want to add your existing Life Insurance policy.
Are not eligible for other types of Life Insurance plans.
Work in an occupation that is high risk.
Are currently an RBC company customer.
Are a Canadian resident. You can also enroll your spouse or partner for family coverage if they are between the ages of 18 to 69 years.
What is Covered?
If you choose the spousal package, your policy protects you and your spouse until you're 80 years old for:
Death Due to Accident If you die within one year directly due to an accident other than an air travel accident, your beneficiary or estate will receive the tax-free death benefit.
Air travel accident If you die as a result of an air travel accident within one year, we will pay:
The death benefit if you are a passenger that has paid a fare
On a scheduled commercial airline flight.
If you are a crew member, pilot, or non-fare paying passenger on a commercial airline aircraft, you will get 50% of the accidental death payment.
Child Care Benefit
In the unfortunate event you or your spouse suffers an accident leading to death, we will refund the money paid for childcare expenses for children under 16 years to their legal guardian. We will also pay 2% of the death benefit or $2,000, whichever is less, for a maximum period of five years or until the child turns 16 years of age, whichever is earlier.
We will repay the money spent for tuition fees for each dependent child under the age of 23 years old within one year of your accident, up to a maximum of 5% of the accidental death benefit or $5,000, whichever is less, for a maximum term of five years from the date of your accident.
Spousal Job Training Benefit
Within 12 months of your death, your spouse can apply for training courses, and we will refund your spouse for eligible job training expenses, up to 5% of the accidental death benefit or $5,000, whichever is less, for up to three years. Note: The training courses must be with an accredited occupational training program.
When We Don't Pay
We will pay up to 50% of the accidental death benefit if both you and your spouse are above the age of 70 and die in an accident within one year. We shall not pay benefits if you or your spouse dies as a consequence of the following:
Attempting to suicide or suicide
Intentionally injuring themselves
Making a criminal attempt or committing a crime
Alcohol and drug abuse
Medical treatment or surgery not from an accident
War or civil disorder
Use of chemical, biological, or nuclear weapons and/or devices.
An air travel accident unless you or your spouse were a paying passenger on a regular commercial flight.
The insurance plan must be in force both at the time of the accident and at the time of death for the beneficiaries to be eligible for benefits.
About your premiums
You can rest assured that your payments will not increase; however, it is likely that the group rates to change in the future.
Who can enroll for Personal Accident Protection coverage?
You must meet the following criteria to be eligible for this coverage:
A current RBC Company customer
Between the ages of 18 to 69 years.
Are a Canadian resident. You can also enroll your spouse or partner for family coverage if they are between 18 to 69 years.
Can your partner enroll for Personal Accident Protection coverage?
If you have been living with your spouse for more than a year and they are between the ages of 18 and 60, you may get family coverage to protect yourself and your partner.
Will the premium payment for Personal Accident Protection coverage increase?
Your payments will not increase with age. While the group may change, you, though, will not be targeted for an increase. We will provide a 60-day notice if the rates vary.
Details of the coverage
To enroll for Personal Accident Protection coverage, do I need to undertake a medical exam?
It is not required. As long as you meet the eligibility requirements, your acceptance is guaranteed. You will not need to answer any health questions to apply for this insurance plan.
When does the insurance coverage start and end?
You will get an insurance certificate in your registered email after your registration has been finalized. Your coverage start date will be specified in the insurance protection plan.
Your coverage ends on:
The day you pass away.
The day you reach 80 years old.
The day you ask to cancel your Life Insurance policy.
The day you stop making your insurance premiums. A 30-day grace period will be awarded after the payment due date.
The day you are no longer a resident of Canada.
The day the coverage gets canceled.
Who is the insurer and underwriter for the insurance plan?
RBC Life Insurance Company is the insurer and underwriter. It is a group policy issued to the Royal Bank of Canada.
Demystifying Life Insurance Policies
Does Life Insurance leave you confused and leave you scratching your head? If yes, you're in good company.
A recent survey by the Financial Services Commission of Ontario (FSCO) found that only 47% of 25- to 34-year-olds in Ontario have Life Insurance. Almost half of those (48.6%) say they don't fully understand their policy.
There is no getting around the fact that Life Insurance is a challenging subject that isn't particularly fun to think about, but it doesn't have to be stressful and confusing either. This short article will help demystify the jargon so that you can feel more comfortable as you explore your options.
What is Life Insurance?
Life Insurance policies come in many varieties. It is a legal policy between the insured and the insurer. As the insured (Policyholder), you buy a certain amount of Life Insurance from the insurer (insurance company), and the insurer promises to pay a tax-free death benefit to your beneficiaries or your estate in the event of your unfortunate demise.
It is also important to note that Life Insurance policies can be very affordable— no matter how much money you make-that $200,000 policy mentioned above. A woman in her 30's who does not smoke pays a much lesser coverage that covers her for a period of 20 years.
How does Life Insurance work?
Before we understand how a Life Insurance policy works, let us look at how most Life Insurance policies generally work in exchange for a monthly or annual premium that you pay to an insurance company based on the insurance policy's coverage. If you pass away while you have this coverage, your beneficiaries will be able to make a claim to your insurer for the amount of coverage you purchased. The money that is paid to your beneficiaries or your estate is commonly called the death benefit.
Tax-free death benefit
The significant benefit of the Life Insurance death benefit is that it's not usually taxable–regardless if your policy pays out $40,000 or $400,000. That means your family won't have to report the amount as taxable income when filing for taxes.
A word of caution, however. If you do not title a beneficiary on your policy, your "estate" will be made as to the beneficiary. The death you receive will have a lesser amount as the probate fees will be deducted. It is also known as the estate administration tax. All your assets and liabilities at the time of your demise are considered your estate.
It will be taxable if you have a universal Life Insurance plan or whole Life Insurance policy that accumulates cash value. You can read more about cash value Life Insurance here: The Types of Life Insurance Explained.
To read more about taxes and Life Insurance, check out: Will My Loved One's Pay Tax on Life Insurance Proceeds?
Your family can use the death benefit for anything
In addition to not paying taxes on the Life Insurance death benefit, your beneficiaries are free to use the money as they see fit. The amount received from the benefit can be used for:
Take care of household bills and childcare expenses.
Pay off your mortgage.
Settle other expenses, like car loans and credit card bills.
Covers your children's education.
Cover your funeral expenses
While there are numerous reasons to get Life Insurance, the most common is to ensure that their family would not face financial hardship if they pass away. If you have loved ones who rely on you for financial support, you should consider purchasing a Life Insurance policy.
You need to buy a Life Insurance policy if you check any of the below mentioned options:
Having a child
Dependent children and other family members
Finances and responsibilities between me and my spouse/partner
Loans and expenses to pay off that my spouse/partner can't afford without me
Leave money behind to cover my funeral expenses
Leavy money behind to support my favourite charity
I'm young, single, and don't have kids. I don't need Life Insurance, right?
That depends. There can be significant benefits to getting Life Insurance coverage while you're young. Take a look at the reasons: Six Reasons Why Now May be the Best Time to Get Life Insurance.
What are some benefits of Life Insurance?
A Life Insurance plan protects your family from any financial constraints if you pass away, but it also offers other benefits. Certain types of Insurance can help you save up for future investments, whether it's paying for your child's education, protecting your assets, or another goal. Check out the four reasons to get Life Insurance at any age.
Two major types of Life Insurance?
While there are many different types of Life Insurance, they always fall into one of two categories: Term Life Insurance and Permanent Life Insurance. There are even more options inside those plans to assist you in acquiring the coverage that best suits your requirements.
Term Life Insurance: It is the most cost-effective Insurance and covers you for a certain period—from 10 to 40 years, and everything in between. Many individuals get Term Life Insurance when their children are young and have debt, such as a mortgage. It is less expensive than permanent Insurance and is simple to obtain. For example, if you're young and healthy, you won't have to have a medical test and may even be qualified for an instant decision.
Permanent Life Insurance: It's more costly Insurance that covers you for the rest of your life and, in some circumstances, allows you to save money. Permanent Life Insurance includes term 100, whole Life Insurance, and universal Life Insurance. Whole Life Insurance and universal Life Insurance protect you for the rest of your life while also allowing you to save money within your policy (called cash value or accumulation value). One of the advantages of cash value insurance is that you may be able to use the "cash value" to augment your retirement income, assist your children in paying for post-secondary education, and much more in the future.
How much Life Insurance do I need?
The short answer? Probably more than you think. It is a unique question to answer for everyone. It is essential that you keep a few things in mind when choosing an insurance coverage amount. To get an instant quote, give our Life Insurance calculator a try.
Your annual income
It is advised that you have at least 5-7 times your yearly net income when deciding to purchase an insurance policy (Note: net means after taxes are deducted). Which essentially provides 5-7 years' worth of your annual income to your beneficiaries.
Who depends on you financially?
Consider each individual who relies on you and how long you may need to offer financial assistance to that person. How old is your youngest child, for example? What is your total number of children? Do you want them to have the chance to go to college or university? Or are you and your lover the only ones in the room right now?
If you have debts and expenses like a mortgage, credit card bill, or student loans, how long would it take for your spouse/partner to settle all these debts completely? The significant difference between your spouse/partner have to see the home, or staying has enough income to pay off the mortgage.
Other Life Insurance policies, if you have it
You may be able to deduct these amounts from what you need to buy if you have group Life Insurance via work or mortgage Life Insurance.
Is the Life Insurance I get through my work enough?
Most group Life Insurance plans only cover 1-3 times your yearly income, so you're likely to be underinsured at work. Furthermore, changing employment will almost certainly result in the loss of your Life Insurance policy. Consult your human resources department or check your policy if you're unsure how much you carry.
Your savings and investments
If you have savings and investments set aside for plans—such as a Registered Education Savings Plan (RESP) for your child's education, you can deduct these amounts from your Life Insurance needs. You just have to make sure that if your family had to use your savings and investments earlier than planned, it would not negatively impact their plans in another area.
Tip: Review your coverage needs every few years, and anytime you have a meaningful life event-like a new family member or even an increase in your income.
Try our Life Insurance calculator now to see how much coverage you require.
What if I am unable to afford what's recommended for me?
Buy a Life Insurance policy you can afford at this point financially because having Life Insurance coverage is better than none. You can always add more when you become financially stable. Also, if you're interested in permanent coverage but can only afford term coverage right now, keep in mind that most term policies give you the option to convert to permanent coverage later.
What is the cost of Life Insurance?
Well, that depends! At RBC Insurance, you can have a quotation instantly by looking at our Life Insurance quote calculator. The premiums you'll pay can be different from what someone else might pay. That's because premiums are based on several factors, including risks that are different for each person. In general, here's what you should consider while figuring out the cost:
The type of Insurance you choose: Unlike a universal Life Insurance policy or whole Life Insurance policy, a Term Life Insurance is a more reasonably priced permanent Life Insurance policy. Term Life Insurance offers lifetime coverage, and in some cases, dividends and other features.
How much coverage to buy:An insurance policy worth a million dollars will cost your more than $250,000
Your age, health, and gender: The Life Insurance policies will cost much cheaper the younger and healthier you are. It is a sad fact that men generally pay more premiums than women do. Sorry guys! An example: A 35-year-old female non-smoker will pay approximately $30 per month for a $350,000 20-year Term Life Insurance policy, but a 35-year-old male non-smoker will spend around $40 – $50 per month for the same policy.
Your lifestyle: If you frequently drink alcohol and enjoy high-risk activities such as rock climbing and much more, you may end up paying higher premiums. You are guaranteed to pay more for your insurance policy if you smoke or consume other tobacco products.
Family medical history If critical illnesses like diabetes, cancer, or other severe medical conditions run in your family, this could increase your policy premiums.
How do I purchase Life Insurance?
It is crucial to keep in mind that some types of Life Insurance policies are simpler to buy than others. Depending on the type of Life Insurance coverage you require and how much coverage you are applying for, your application will be required to go through underwriting; this is a process where the insurance company evaluates the risks associated if they choose to insure you.
Before we understand what underwriting is, here is the path you can take once you're ready to buy an insurance policy:
Buying coverage through an insurance advisor: Many residents of Canadians purchase Life Insurance with the help of an experienced insurance advisor. At RBC Insurance, our licensed professional advisors can provide quality advice to help you make the best decision for you and your family. It's easy to connect with us. Request a call with our insurance advisor to help with you're your Life Insurance needs and queries. Our insurance advisors will be more than happy to help you with your queries.
Buying coverage online: If your needs are relatively uncomplicated and straightforward, there's a great chance you could get an instant quote and buy your coverage online.
At RBC Insurance, we offer our customers a few options online:
Term Life Insurance: You may be able to get a quotation and receive a quick decision depending on the coverage amount you're looking for and if you're a Canadian citizen or permanent resident/landed immigrant. You may be forced to complete a phone interview if you do not obtain an immediate decision. It's also conceivable that a registered nurse may need to come to your place for an examination.
Personal accident insurance: You may acquire personal accident insurance online if you're an RBC® client between 18 and 69 and a Canadian resident. In reality, your acceptance is a foregone conclusion.
RBC Guaranteed Acceptance Life Insurance: If you're a Canadian citizen or permanent resident/landed immigrant 40 to 75 years old, you can buy up to $40,000 of Life Insurance. There are no medical exams to undergo or health questions to be answered. Call us today for further information or to get a quote.
Getting coverage through work
If your employer offers a group Life Insurance policy, you'll want to follow up with your human resources department or plan administrator. What information will I have to present when I apply to purchase Life Insurance? In most cases, you will need to give information about your lifestyle, health, age, personal medical history, and family medical history.
It is extremely important that you answer all questions in your application honestly and accurately. RBC insurance can deny, adjust your benefits, or even void your coverage if you give incorrect or incomplete information.
What happens after I apply for Life Insurance?
The underwriters review your application once you send in your application.
It is not compulsory but more or less like a formality. Depending on the situation and risk involved, it can be minimal or time-consuming. You may be asked to complete the application over the phone or by undergoing a medical exam.
Phone interview: If the insurance company requires more information, you may need to complete a telephonic interview. The interviewer may ask personal, financial, and medical-related questions.
Medical exam: If you are subject to a medical exam, a paramedical nurse may come to your house to check your vitals. This includes collecting your pulse and blood sample and weighing and measuring you.
Application approval process timeline
It ideally varies. In some cases, you may hear back from the insurance company instantly. For example, if you have an excellent medical history, are under 56 years of age, and want less than $1 million in term insurance, you may get a quick response from insurance companies. In some instances, it could take weeks or even months to find out if your application has been approved. If your application requires a telephonic interview or medical exam, you must have to wait a little longer.
If something is unclear in the policy, do not hesitate to ask the question once your Life Insurance application has been approved. It is in your best interest to clearly understand your insurance coverage. Get in touch with the advisors at RBC Insurance to discuss your queries or find out more information.