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A critical illness diagnosis can turn your world upside down. Medical bills, lost income, and additional expenses can quickly pile up, adding stress to an already challenging time. Critical illness insurance can be a financial lifeline, providing a lump sum payout to help cover these costs so you can focus on your recovery.
In this post, we’ll take a deep dive into RBC’s critical illness insurance plans. We’ll explore the different plan options, key features, and benefits they offer. By the end, you’ll have a clear understanding of critical illness insurance plans from the insurance arm of Royal Bank of Canada, their pros and cons, and how they stack up against the competition.
So, whether you’re just starting your research or ready to compare quotes, this guide is here to help you make an informed decision about your financial security.
About RBC Insurance
RBC Insurance, the insurance arm of Royal Bank of Canada, is a trusted name in Canadian households. They offer a wide range of products to safeguard your well-being and financial future. Beyond the critical illness insurance we’ll be focusing on, RBC Insurance provides a comprehensive suite of personal and business insurance solutions, including:
- Life insurance, including term and whole life
- Disability insurance
- Home and auto insurance
- Travel insurance
- Credit insurance
- Segregated funds
- Payout annuities
Key facts about RBC Insurance
AM Best Rating: A
Head office: 6880 Financial Dr. Suite 200, Mississauga, ON, L5N 7Y5
Website: https://www.rbcinsurance.com
Contact phone number: 1-800-768-2568
What Critical Illness Insurance Plans Does RBC Insurance Offer?
Critical illness insurance acts as a financial safety net in the face of a life-altering diagnosis. It recognizes that critical illnesses like cancer, heart attack, or stroke can bring not only physical challenges but also significant financial burdens.
With critical illness insurance, you receive a lump sum cash benefit upon diagnosis of a covered condition. This payout can be used for various purposes, such as covering out-of-pocket medical expenses, replacing lost income during treatment, or making necessary home modifications.
The benefit of critical illness insurance lies in offering peace of mind and protecting your standard of living during a difficult time. It allows you to focus on your recovery without the added stress of worrying about finances.
Let’s take a look at the two different RBC critical illness insurance plans.
Critical Illness Insurance Plan
For those seeking a more streamlined critical illness insurance option, RBC Insurance offers the Critical Illness Insurance Plan. This product focuses on the three most common critical illnesses: cancer, heart attack, and stroke. While the coverage scope isn’t as extensive as other plans, it provides a valuable financial safety net for these prevalent health concerns.
The Critical Illness Insurance Plan caters to those who prioritize affordability. It offers lower premiums than those covering more illnesses, making it a budget-friendly option for critical illness protection. Keep in mind that this plan is renewable with premium increases every 10 years.
This plan is a good fit for individuals who want up to $75,000 of coverage for the most common critical illnesses at an attractive price point. Some policies start at under $10 per month.
- Pros:
- Targets the "big three" of critical illnesses: cancer, heart attack, and stroke, offering cost-effective coverage.
- A good fit if you're looking for no-frills critical illness coverage for a few dollars per month.
- Cons:
- Excludes coverage for other critical illnesses like multiple sclerosis or Parkinson's disease.
- Unlike some basic plans offered by competitors, RBC's product involves a more thorough underwriting process, which may include a medical exam. This represents a more significant hurdle to buying it.
- Because it only offers term-10 coverage, you can't choose a longer guarantee period for your premiums.
- While $75,000 can be a valuable safety net, those requiring a more substantial financial buffer will want to explore plans with higher coverage limits.
- Only people aged 18-50 are eligible, so it's not accessible to people older than 50.
Critical Illness Recovery Plan
For those seeking the most robust protection, RBC offers the Critical Illness Recovery Plan. This plan goes beyond the basic plan by covering 25 critical illnesses. This broader spectrum ensures you’re financially protected against a wider range of life-altering diagnoses.
Recognizing that not all critical illnesses are created equal, the plan offers an early assistance benefit. If diagnosed with a covered condition deemed less severe, such as early-stage cancer, you’ll receive 10% of your benefit amount as an upfront payout.
Additionally, you can buy between $25,000 to $2,000,000 in benefits, providing a wide range of financial protection during a health crisis.
Furthermore, the plan gives you access to consultations with the world’s leading medical professionals through the Teladoc Medical Experts service. It also helps match you with the right specialist in Canada to treat your condition. Besides this service, you can also access the Healing the Whole Person program, providing mental health support to manage the stress and anxiety associated with a life-altering illness.
- Pros:
- Unlike some critical illness insurance providers, the early assistance benefit doesn't diminish your future payout. Let's say you buy $100,000 in coverage and receive a early-stage cancer diagnosis. The early assistance benefit would payout $10,000 without affecting the $100,000 benefit if you meet the criteria for a full critical illness claim later.
- Has a unique option to convert your policy to long-term care insurance, which provides monthly payments to help cover the cost of care facilities or in-home caregiving if you need assistance with daily living activities.
- Offers an optional rider called the Scheduled Increase Benefit (SIB) that helps your coverage keep pace with inflation. With this rider, your benefit amount automatically increases by 20% of the original amount every two years for a total of five increases over 10 years. This means by the end of the decade, your critical illness payout will be double the amount you initially purchased. This future-proofs your coverage, ensuring it maintains its value even if medical costs rise over time.
- Cons:
- Unlike most of its competitors, some Critical Illness Recovery Plans don't have guaranteed premiums, so the price may go up every year.
- While other providers only have 30-day survival periods for cardiovascular diseases like heart attacks, all covered illnesses with RBC require at least a 30-day survival period.
- The early assistance benefit pays 10% compared to 15% with other companies. It also only pays once, while other insurers pay multiple times for different types of less severe illnesses.
- The plan only offers the return of premium on death rider and doesn't have the return of premium on cancellation or expiry riders.
- Minimum eligibility starts at age 18, making it unsuitable for children.
- Does not offer the term-100 plan, which provides lifetime coverage.
Here is a table comparing the two RBC critical illness insurance plans:
Critical Illness Insurance Plan | Critical Illness Recovery Plan | |
|---|---|---|
Age eligibility | 18-50 | 18-65 |
Number of illnesses covered | 3 | 25 |
Plan types | Term-10 | Term-10, Term-65, Term-75 |
Guaranteed premiums | No | Only for some plans |
Expiry | Age 65 | Age 65 or 75, depending on the plan |
Coverage limits | $10,000, $25,000, $50,000, or $75,000 | $25,000 to $2,000,000 |
Survival period | 30 days for all illnesses | 30 days for all illnesses |
Partial benefits | Pays 10% of the chosen benefit amount, up to $50,000, for less severe illnesses. Covers seven illnesses. Only pays once | Pays 10% of the chosen benefit amount, up to $50,000, for less severe illnesses. Covers seven illnesses. Only pays once |
Conversion privileges | No | Term-10 can be converted to term-65 or term-75. All plans can be converted to long-term care insurance |
Type of underwriting | Fully underwritten. A medical exam may be necessary | Fully underwritten. A medical exam may be necessary |
Riders | Return of premium at death | Return of premium at death, scheduled increase benefit, disability waiver of premium |
Value-added service | Teladoc Medical Experts, Medical Confidence Service, “The Healing Journey” program | Teladoc Medical Experts, Medical Confidence Service, “The Healing Journey” program |
How to purchase | Through a licensed insurance advisor | Through a licensed insurance advisor |
What Illnesses Does RBC Critical Illness Insurance Cover?
Here’s a list of conditions covered by RBC’s products.
Critical Illness Insurance Plan
This product pays out full benefits for these three illnesses:
- Heart attack
- Life-threatening cancer
- Stroke
It also pays partial benefits for the following less severe diseases:
- Coronary angioplasty
- Early breast cancer
- Early prostate cancer
- Early skin cancer
Critical Illness Recovery Plan
While this plan boasts a comprehensive list of 25 critical illnesses, it excludes acquired brain injury. Other providers’ plans sometimes include this condition, bringing the total number of covered illnesses to 26.
- Aortic surgery
- Aplastic anaemia
- Bacterial meningitis
- Benign brain tumour
- Blindness
- Coma
- Coronary artery bypass surgery
- Deafness
- Dementia, including Alzheimer’s disease
- Heart attack
- Heart valve replacement or repair
- Kidney failure
- Life-threatening cancer
- Loss of independent existence
- Loss of limbs
- Loss of speech
- Major organ failure on waiting list
- Major organ transplant
- Motor neuron disease
- Multiple sclerosis
- Occupational HIV infection
- Paralysis
- Parkinson’s disease and specified atypical Parkinsonian disorders
- Severe burns
- Stroke
Here are the seven less severe illnesses that pay partial benefits, matching the number from most of its competitors:
- Coronary angioplasty
- Early breast cancer
- Early prostate cancer
- Early skin cancer
- Early stage blood cancer
- Early thyroid cancer
How Much Does RBC Critical Illness Insurance Cost?
The premium for the RBC critical illness insurance plans depends on several factors, including your age, gender, smoking status, and benefit amount. For example, younger applicants and non-smokers receive lower premiums.
Additionally, your overall health, medical history, lifestyle habits, and family history can also play a role in determining your final cost. If you have pre-existing health conditions or a family history of a major hereditary disease, your premium might be higher.
Here is a table showing the standard monthly cost of $100,000 of term-10 coverage for the Critical Illness Recovery Plan for non-smoking men and women:
Age | Male | Female |
|---|---|---|
25 | $27 | $26 |
30 | $30 | $30 |
35 | $33 | $33 |
40 | $44 | $44 |
45 | $64 | $63 |
50 | $94 | $86 |
55 | $180 | $139 |
60 | $272 | $196 |
How Do You Buy An RBC Critical Illness Insurance Plan?
The RBC critical illness insurance plans are designed to provide peace of mind, but securing the right coverage requires some guidance. To obtain a quote and ultimately purchase a policy, you’ll need to connect with a life insurance advisor.
Your advisor will act as your partner in navigating the critical illness insurance landscape. They’ll guide you through a needs assessment to understand your financial situation and risk tolerance. This will help determine which of RBC’s critical illness coverage, or even a plan from another provider, best suits your specific circumstances.
The good news is that the application process itself is efficient. An electronic application can be completed in as little as 15 minutes. Following the initial application, you’ll be asked questions about your health history, medical background, and lifestyle habits. Depending on the coverage amount you seek and your age, a medical exam might also be required.
Once the underwriter has reviewed all the information, including your application and potentially your medical exam results, they will determine your eligibility and provide a coverage offer. Throughout this process, your insurance advisor will be there to answer your questions, clarify any details, and ensure you feel confident about your critical illness insurance decision.
Need An RBC Critical Illness Insurance Quote?
A critical illness diagnosis can be life-altering, but with proper planning, you can be financially prepared to face such challenges. The RBC critical illness insurance products offer valuable protection, but with two distinct options, deciding which one is right for you requires careful consideration.
This is where a life insurance advisor can be your trusted guide. Schedule a free, no-obligation consultation today by emailing us at info@briansoinsurance.com or calling 604-928-1628. We will work closely with you to understand your needs, assess your risk tolerance, and help you determine the most suitable critical illness insurance plan, whether from RBC Insurance or another provider.
We’ll help design a package that includes life, disability, and health and dental insurance, so that you’ll be well-protected against a wide range of life’s uncertainties.
Don’t wait until a critical illness strikes to take action. Take control of your financial security today. Alternatively, you can use the quick quote form below to get a general sense of coverage options and pricing.
Remember, a proactive approach is key to safeguarding your well-being and ensuring financial peace of mind for yourself and your loved ones.
Get Your Critical Illness Insurance Quote Now
While we make every effort to keep our site updated, please be aware that timely information on this page, such as quote estimates, or pertinent details about companies, may only be accurate as of its last edit day. Brian So Insurance and its representatives do not give legal or tax advice. Please consult your own legal or tax adviser. This post is a brief summary for indicative purposes only. It does not include all terms, conditions, limitations, exclusions, and other provisions of the policies described, some of which may be material to the policy selection. Please refer to the actual policy documents for complete details which can be provided upon request. In case of any discrepancy, the language in the actual policy documents will prevail. A.M. Best financial strength ratings displayed are not a warranty of a company’s financial strength and ability to meet its obligations to policyholders.
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