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Long-term disability insurance ensures your financial security while you’re off work for a significant period of time. But did you know that many Canadian insurance companies offer long-term disability insurance? How do you know which one is right for you?

In this post, we take a deep dive into RBC disability insurance policies. We examine the variety of products and their advantages and drawbacks. In the end, you will know which disability benefit is right for you.

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About RBC Insurance

RBC Insurance forms the insurance arm of the Royal Bank of Canada, the largest bank in Canada. It offers a full suite of insurance solutions for individuals, including:

  • Term and whole life insurance
  • Critical illness insurance
  • Home and auto insurance
  • Travel insurance
  • Credit insurance
  • Segregated funds
  • Payout annuities

Besides individuals, RBC Insurance also serves businesses with group coverage that encompasses life insurance coverage, short-term and long-term disability insurance, and health and dental coverage. Small business owners can also protect their businesses with key person, business overhead, and buy-sell insurance.

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 Disability Insurance Plans Does RBC Insurance Offer?

RBC Insurance has the most diverse lineup of disability insurance policies in Canada. Whether you’re newly self-employed, looking to top-up your group disability benefits, have health issues, are working part-time, want to avoid the medical exam, or are in another unique situation, you’ll find a disability insurance plan that fits your need.

Professional Series

RBC’s best disability insurance product provides the most comprehensive coverage with many benefits built-in. For example, residual and partial disability insurance benefits are built-in, so you don’t have to pay extra for a rider like you would with other products. The target demographic is high-income earners like doctors, lawyers, consultants, and executives in a corporate setting.

Foundation Series

If you need more budget-friendly disability insurance coverage, look no further than the Foundation Series. With a modular design, you get lower-cost coverage with the option of adding riders to upgrade your disability policy. This product is more suitable for small business owners, employees, blue-collar workers, farmers, and the middle-income market.

Fundamental Series

For people who can’t qualify for the two non-cancellable plans, this may be their only way to obtain disability coverage. This would include actors, artists, athletes, authors, pilots, flight attendants, armed forces members, and manual labourers with hazardous duties. Because you can buy injury and illness coverage separately, people with pre-existing medical conditions can still get injury-only coverage.

Bridge Series

This is also tailored to small business owners and the middle-income market. Although it has more limitations and fewer guarantees, getting approval is easier, especially if you’re buying less than $3,000 in monthly benefits and don’t have proof of income.

Quantum

Quantum is for fee-for-service professionals, consultants, and high-income executives who want a more affordable plan than the Professional Series. Unlike the other products, this one pays you a benefit proportional to your lost income.

RBC Simplified Disability Insurance

Although it is the only disability insurance plan you can buy directly from RBC Insurance, only a small subset of workers should consider this product. For example, seasonal workers, contract workers, and self-employed who have difficulty getting one of the other products.

Here is a table comparing the products side by side:

Professional Series
Foundation Series
Bridge Series
Quantum
Fundamental Series
Simplified Disability Insurance
Target market
High-income professionals and executives
Small business owners, tradespeople, middle-income earners, and farmers
Similar to Foundation Series but with fewer guarantees, newly self-employed
High-income professionals and executives
Self-employed, contract workers, retail workers, construction workers, tradespeople
Self-employed, contract workers, part-time or seasonal workers, those who want simplified underwriting with no medical exam
Covers
Injury or illness
Injury only with illness add-on
Definition of disability
Regular occupation for entire benefit period
Regular occupation for two years (can be extended to the entire benefit period)
Reasonable occupation for entire benefit period
Regular occupation for three years
Regular occupation
Age eligibility
18-60
18-69
18-55
Occupation classes
4A, 3A, 2A
4A, 3A, 2A, A, B
4A, 3A, 2A
1, 2, 3, 4, 5, 6
None
Occupation class upgrades
Yes
N/A
No
Waiting periods
30, 60, 90, 120, 180, 365, or 730 days
0, 30, 90, or 120 days
60 or 90 days
Benefit periods
Two, five years, to age 65
Two, five, 10 years, to age 65
Two, five years, to age 65
Two, five years, to age 70
Two years
Minimum coverage
$450
$500
Maximum coverage
$25,000
$6,000
$1,500
Medical exam required
Yes, above a certain age and amount
For illness coverage only
No
Premium guarantee
Guaranteed level rates to age 65
Not guaranteed
Expiry
None
Age 75
Age 65
Riders
Family compassionate care, future income option, cost of living benefit, own occupation, retirement protector, accidental death and dismemberment, first day of hospitalization, health care profession
Family compassionate care, future income option, cost of living benefit, regular occupation extension, partial disability, retirement protector, accidental death and dismemberment, first day of hospitalization, health care profession
Family compassionate care, future income option, cost of living benefit, regular occupation extension, partial disability, first day of hospitalization
Family compassionate care, future income option, cost of living benefit, health care profession
Accidental death and dismemberment
None

Disability insurance products for businesses

Besides personal disability insurance products, RBC Insurance also has a suite of products for small business owners. These include:

Business overhead expense insurance: Get your business expenses reimbursed for up to two years while you’re totally disabled.

Wage loss replacement plan: As an alternative to group disability coverage, a WLRP provides better coverage and offers guaranteed premiums.

Buy-sell disability insurance: Allows you to buy out your business partner if they become disabled.

Key person disability insurance: Protects your company from the financial loss of a disability of a key employee.

Business loan protector: Covers the monthly payments of your business loans if you become totally disabled.

Got a question about insurance?
Call us at 604-928-1628 or send us an email at info@briansoinsurance.com. We'll be happy to help!

How Much Does RBC Disability Insurance Cost?

Because RBC Insurance has so many disability insurance plans with different terms, conditions, limitations, exclusions, benefits, and more, the cost varies widely. In general, RBC Simplified Disability Insurance is the most expensive, followed by the Fundamental Series, Professional Series, Quantum, Foundation Series, and Bridge Series, in that order.

However, because of the enhanced disability benefits of the Professional and Foundation Series, these provide better value than the other disability insurance plans.

The cost of RBC long-term disability coverage also depends on your personal factors, including age, gender, smoking status, and occupation. Finally, the plan design also affects the premiums you pay. For example, a longer elimination period, like 365 days, will be more costly than a shorter elimination period, like 90 days. Any optional coverage you add, like the cost-of-living rider, will also increase the premium.

Below is a table showing the monthly premiums for the Professional Series. The sample insured is a non-smoker in a low-risk occupation like a lawyer or doctor. It will pay $5,000 in monthly income after a 90-day elimination period, payable to age 65.

Age
Male
Female
25
$78
$125
30
$86
$159
35
$104
$194
40
$132
$225
45
$164
$251
50
$214
$283
55
$279
$332

Verdict: Our RBC Disability Insurance Review

So, should you buy an RBC disability insurance policy? In our opinion, RBC Insurance has some of the best disability benefits on the market. Here are the things we like and dislike the most about its disability policies.

How Do You Sign Up For RBC Disability Insurance?

Besides RBC Simplified Disability Insurance—for which you can apply online yourself—all the other disability insurance plans require you to work with an insurance brokerage to buy. An experienced insurance broker will assess your personal situation to help you find the right income protection plan, whether with RBC Insurance or another insurance company.

Fortunately, in this day and age, every insurance company has an electronic application. That means 50-page paper application forms are a thing of the past. So if you’re applying for an RBC Insurance disability policy, it shouldn’t take more than 15 minutes with an insurance advisor to complete the application.

After you apply, an underwriter will assess your information, including your health, lifestyle, occupation, and finances. It will either approve your application, modify it with exclusions for pre-existing conditions, or decline disability benefits.

After you’re approved, you will get a login to its online portal. There, you can check the details of your coverage and download a copy of your policy.

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Need An RBC Disability Insurance Quote?

Long-term disability insurance coverage is vital to protecting your monthly income. Benefits paid during a claim will cover living expenses so you can maintain your standard of living. By relieving your financial stress, you can focus on what matters most—your health.

If you want to know how much disability insurance costs you, reach out to us at info@briansoinsurance.com or 604-928-1628. Our goal is to match you with the ideal disability insurance policy based on your individual circumstances.

Get Your Disability 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.

One Response

  1. 27 years ago bought a policy to protect my young family to make sure food was on the table.Now as a senior Canadian citizen after paying RBC 27 years of INS premiums i was involved in a rear end Collison while stopped at a light.I was a ski coach, cyclist, golfer,gardner.farmer and worked 12 hours daily before my injurie reduced my hours to less half of that and took a pay cut.
    I was late in my submission for benefits that PROVIDENT/UNUM/ NOW RBC. My claim was denied after waiting 3 months for a response. My criteria was met i am in physio, under doctors care,on meds to sleep, i exercise daily not to seize up. Interesting to find out that these same companies had a class action law suit in the USA 2004. The same time RBC bought these two companies. RBC seemed to side step a multi million judgement against Provident and Unum.I wonder how they managed that? Its seems history is repeating its self in Canada.Being on this earth for 63 years i ve learn to leave things in the past. But being in the present i believe other young unsuspecting families should be made aware of my 27 year+ $50,000cdn lesson taught by RBC I will be happy to place google ad words/use my LinkedIn and Facebook or CBC MARKET PLACE to have these young Canadian know about the lesson from RBC.

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