Universal Life Insurance

To apply for universal life insurance, please contact us:

• Call 1-866-223-7113
• Find an RBC Insurance Branch or Advisor
• Send Us an Email

Yes, you can cancel your insurance at any time by written request. You will receive the policy’s accumulation value, minus any outstanding insurance costs and applicable surrender charges if you cancel your policy during the early years of your coverage. Surrender charges are specified in your policy. A market value adjustment may also apply if you withdraw money from a guaranteed interest option. The proceeds of your cancelled policy may also be subject to taxation.

You may apply for universal life insurance if you:

• Are between the ages of 0 and 85, and
• Are a Canadian citizen or permanent resident/landed immigrant who has been in Canada for more than 12 months

When you apply for insurance, you will need to complete a medical questionnaire. Other tests may also be required based on your age and the amount of insurance you have applied for. If you are required to provide other tests, at your convenience, we will arrange to have a nurse schedule a visit to your home or workplace. All tests are at the expense of RBC Insurance.

Universal life insurance policies combine permanent life insurance with an investment component. A portion of each premium purchases your life insurance, while the balance earns interest that is not taxable while it remains in the policy. Because of this, you help to protect your family against the possibility that you may die, and you help to protect your financial future with tax-deferred or tax-free⁽⁵⁾, creditor-protected savings.

By combining insurance, tax-advantaged investing and flexible coverage options, universal life insurance from RBC Insurance can help meet your most important financial needs.

Upon your death, the policy pays out a tax-free death benefit⁽⁵⁾, which can be used to help:

• Ensure the ongoing financial security of your loved ones
• Pay any taxes associated with your estate, thereby preserving your estate assets and passing your wealth or your business, intact, to the next generation
• Provide a legacy for your favourite charity

During your lifetime, the policy’s tax-advantaged accumulation value grows tax-free, providing you with a potential source of funds for:

• Protecting your income and ensuring your family’s lifestyle
• Supplemental income in retirement
• A financial safety net in the event of an illness or disability

Yes, not only is it possible, it's the cornerstone of effective estate planning. When your estate passes to your heirs, it is—with the exception of your main residence—treated by Canada Revenue Agency as income to your estate. Your heirs may have to borrow money or sell off part of the estate to pay the tax. As a result, your heirs could see a much smaller benefit from your hard work and generosity.

Estate planning is one of the main reasons for buying permanent or universal life insurance. When your estate passes to your heirs, the tax-free⁽⁵⁾ insurance benefit could help to offset the taxes.

At RBC Insurance, your coverage is completely customizable, allowing you to choose the best options for your needs, lifestyle and investment strategy. For example, you can:

• Choose either a "level" or "increasing protection" death benefit option.
• Reduce your coverage or apply for more coverage in later years.
• Choose either single or joint life insurance coverage.
• Select from a wide range of investments, known as interest options, to create the portfolio that's right for you.
• Choose how much to pay into your policy and how you want to pay your premiums—for example, "pay as you go," "pay in advance," or a combination of the two.
• Use the cash value you’ve accumulated in your policy to supplement your income during retirement or for other needs.
• Take advantage of a compassionate advance should you become terminally ill, as well as a disability benefit should you become disabled.

Find out more

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.

The answer to this question depends on several factors, including your salary, whether you have some other group or individual life insurance, your financial obligations and resources, and more. A typical recommendation is to purchase life insurance in an amount 8-10 times your yearly salary. However, your specific needs could be less than or greater than this recommendation.

Try our needs calculator to estimate how much insurance might be right for you.

How much life insurance do you need?

A minimum premium is required to keep the policy in force. If you pay more than the minimum, then a portion of each premium goes towards investments you choose, earning interest that is not taxable while it remains in the policy. There are several ways to access your cash should you need it. For more details, see the FAQ, How can I use the money my policy accumulates?

Yes, you can change your beneficiary by completing a change in beneficiary form. If you name a beneficiary and designate them as "irrevocable" then the beneficiary must also agree to the change.

You are covered under the policy once you are approved, you have accepted delivery of the policy, and we have received the first premium.

Yes. You can request to reduce or increase your coverage at any time by contacting us at 1-800-461-1413. If you want to increase your coverage, new evidence of insurability and approval will be required. Your premiums will also be updated based on the new amount of insurance.

Yes. During the first two years of coverage, if death is due to suicide, then no benefit is payable. Other exclusions may apply to optional riders. Please see a sample policy for complete details on terms and conditions, including benefits and exclusions

Also, if during the application process we are given incorrect or incomplete information, RBC Insurance has the right to deny the death benefit. This includes information regarding age, gender, health, lifestyle or smoking habits.

Yes. In fact, experts recommend that you review your financial goals at least once a year. Your advisor can help you review your policy and consider whether to make any changes. You can change your future premium allocation or transfer money between interest options up to four times per policy year without incurring additional fees. Please note that a market value adjustment may apply if you are withdrawing money from a guaranteed interest option.

Just like a registered Retirement Savings Plan (RSP), the interest you earn within your policy is not taxable as long as your policy falls within the tax-exemption limits prescribed under the Income Tax Act. Tax deferral enables your policy to grow more rapidly than an investment that is subject to taxation. We carefully manage your policy to maintain its tax exempt status. For details on how we achieve this, please speak to an advisor.

There are a number of ways you can access your policy’s accumulation value:

• Make a cash withdrawal. You can withdraw money by written request at any time. The minimum withdrawal is $500. Note that your withdrawal will affect the amount of your death benefit under the policy. In particular, if your policy has a level protection death benefit option, any requested withdrawal or policy option that reduces the accumulation value will automatically reduce the coverage amount and partial surrender charges may apply.
• Request a policy loan⁽³⁾. You can borrow from your policy’s accumulation value at any time. Both fixed-rate and variable-rate loans are available for policies that have satisfied a minimum funding requirement. Loan interest is payable annually on the policy anniversary. Your coverage under the policy will be reduced while the loan is outstanding.
• Use your policy as collateral for a bank loan. If you use your universal life insurance policy as collateral for a loan, you can access funds tax-free⁽⁵⁾, while allowing your cash value to continue to grow untouched, on a tax-advantaged basis. At the time of your death, the loan amount and accumulated interest on the loan can be repaid through the tax-free death benefit of your insurance policy.
• Cancel your policy. You can cancel your insurance at any time by written request. You will receive the policy’s accumulation value, minus any outstanding insurance costs and applicable surrender charges if you cancel your policy during the early years of your coverage. Surrender charges are specified in your policy. A market value adjustment may also apply if you withdraw money from a guaranteed interest option.

Yes. Your policy will allow you to choose how much premium you want to contribute to your policy, within the minimum premium we set to keep your policy in force and the maximum we set to keep your policy exempt from taxation. The minimum premium is specified in your policy. The maximum premium changes every year depending on how your policy’s accumulation value is growing.

Your policy gives you complete choice over the timing and allocation of premium payments—you can pay annually or monthly by pre-authorized debit, and you decide how your money will be invested. After we deduct a premium tax from each premium payment, we direct the balance to your policy’s interest options. Every month we deduct enough to cover the cost of insurance and a guaranteed policy fee of $10 per month.

There are various terms and payment options to choose from. A licensed RBC Insurance^® advisor can help you choose the policy that’s right for your specific needs and budget.

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 30 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.

Our goal is to make the claims process as stress-free as possible. Your beneficiaries will need to call us at 1-877-519-9501. An RBC Insurance^® representative will send them a claims form and guide them through the claims process.

Your beneficiaries will receive a lump sum tax-free payment in the event of your death, once they have submitted the required paperwork and the claim has been approved.