RBC Disability Insurance: Full Review

Purchasing disability insurance may give you peace of mind knowing you will be protected financially in the event of disability. RBC Insurance, one of the top insurance providers in Canada, offers a suit of disability insurance products at competitive prices.  

In this post, we evaluate each of RBC’s disability insurance products and company’s overall strengths and weaknesses. Equipped with this information, you will be able to make an informed decision about whether RBC Insurance is a right fit for you and, if so, which one of its disability insurance products you should buy. 

Key Facts about RBC Insurance

RBC Insurance, the insurance arm of Royal Bank of Canada, offers a wide range of insurance solutions, including, but not limited to, life insurance, health insurance, and disability insurance. Apart from individuals, RBC also provides disability insurance products for small businesses to help them adequately protect their business from unforeseen circumstances.

• AM Best Rating: A
• Head office: Mississauga, ON
• Contact Ph no.: 1-800-768-2568
• Website: https://www.rbcinsurance.com

What are the pros and cons for RBC Disability insurance?

Pros:

• One of Canada’s most reputable insurance companies
• The range of disability insurance products it provides
• Its financial stability (Financial strength rating of A (Excellent) from AM Best)
• Provides monthly disability benefits of up to $25,000
• You can buy injury-only plans without taking a medical exam
• Waiver of premium option available with some plans
• Step-rate premiums lets you pay less while you’re getting your carrier off the ground

Cons:

• Online quotes are available for only the Simplified Plan; for all other RBC disability insurance products, you must speak to an advisor to get a quote
• Own occupation rider is available for limited occupations

What disability insurance plans does RBC offer?

RBC offers a wide range of disability insurance plans. Whether you work-time, are a self-employed, have underlying health concerns, or want a supplemental policy or a no-medical policy, RBC has something for you. 

Shared ahead is key information on different RBC disability insurance plans, including main features and pros and cons, to help you pick a plan that is perfect for your unique situation. 

1. Simplified Disability

Not a fan of disability insurance medical exams? If so, you may want to look at this plan from RBC, particularly if you are self-employed. The Simplified Disability plan lets you skip the usual medical exam and complete the entire application process online. However, on the downside, the coverage is designed for only a small subset of workers — self-employed individuals, contract workers, and seasonal workers. 

Pros

• You can buy it directly from RBC Insurance
• You don’t have to take a medical exam
• The application process is much shorter
• Gives you the option to buy coverage for only injury or both injury and illness

Cons

• Quiet costly in comparison to other RBC disability plans
• The maximum monthly benefit amount is $1,500, which may not be sufficient for many people
• The maximum benefit period is two years, which may leave you unprotected in the event of a long-term or permanent disability

2. Bridge Series

Aimed at medium income workers, small business owners, and farmers, the Bridge plan provides monthly benefits of up to $25,000 in the event of disability. Compared to RBC’s top-of-the-line disability products, the Bridge series offers fewer guarantees and has more limitations. On the upside, getting an approval is easy, particularly if you don’t have proof of income and are okay with a monthly benefit of less than $3,000.

Pros

• More affordable than some other RBC products 
• Available for self-employed persons without prior industry experience and part-time workers

Cons

• Proof of earning must be submitted at the time of claim filing, which means you may not receive the maximum benefit amount if you have a flexible annual income
• The benefit period is rather limited for certain conditions such as psychotic disorders, mental health issues, and chronic fatigue syndrome
• RBC can increase your premium rate at policy renewal

3. Fundamental Series

The Fundamental Series is designed for the self-employed people, contract workers, construction workers, truckers, farmers, and others who do not have access to group disability insurance or want to supplement their group coverage. You can buy illness and injury coverage separately.

The eligibility requirements for Injury-only coverage are less stringent than for Illness-only coverage. So even if you have a pre-existing condition, you can rest easy knowing you will qualify for Illness-only coverage. Depending on your needs, you can buy a policy that protects you 24 hours a day or only when you are not at work. The Fundamental Series offer numerous benefits beyond disability protection, including waiver of premium, partial disability benefit, and accidental medical emergency benefit. 

Pros

• Can qualify for injury-only coverage with pre-existing conditions
• A shorter application process compared to traditional disability insurance plans
• You can extend injury coverage until age 75
• Guaranteed renewable clause include, meaning RBC can’t cancel your plan unless you stop paying premiums or want to terminate coverage

Cons

• Even though RBC can’t cancel the policy, it can increase premiums at each policy renewal
• The maximum benefit is $6,000 per month, which may not be sufficient for high-earners
•  Include exclusions such as mental disorders, injuries sustained while traveling, and soft tissue injuries

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4. Quantum 

Designed for high-earners, Quantum series can provide up to $25,000 in disability benefits. If you are a high-earner, you may find it an ideal option. Unlike many other RBC disability insurance products, it provides a monthly benefit proportional to your income, ensuring you will be able to live comfortably in spite of losing your ability to work.  

Pros

• Provides benefits proportional to your income
• Higher maximum coverage limit compared to other RBC disability plans
• No proof of earnings needed at the time of filing a claim if the benefit amount is less than $3,000 a month
• RBC Insurance covers the cost of a work assistance program to help you take up a reasonable occupation (any gainful activity for which you are, or can become reasonably, qualified by education, training, or experience)

Cons

• Proof of earnings required at the time of claim filing for monthly benefit amounts in excess of $3,000, making it difficult to get the maximum benefit if your annual income fluctuates
• Your premium rate is likely to go up at each policy renewal
• The benefit from this plan is integrated with all other disability benefits available to you, such as CPP, group long term disability insurance, and Workers’ compensation

5. The Professional Series

This non-cancellable plan comes pre-built with many benefits on top of disability protection, such as residual and partial disability benefits. Geared toward high-income earners, such as lawyers, doctors, top-level executives, and consultants, the professional series can provide monthly benefits of up to $25,000 in the event of disability. 

Pros

• Since this is a non-cancelable plan, RBC Insurance cannot cancel the policy, reduce the benefits, or increase the premium rate during the coverage period
• Many attractive built-in features
• Comes with a generous cost-of-living adjustment rider that ensures your disability benefits increase if inflation goes up 
• Attractive discounts for eligible applicants (e.g. medical students are eligible for a 25% reduced rate)

Cons

• Not available for all occupation classes
• No option to add the return of premium rider
• You may have to submit proof of income at the time of applying

6. The Foundation Series 

Like the Professional series, this plan also provides up to a $25,000 monthly disability benefit, is non-cancellable, and is primarily designed for high-earners. However, it comes with fewer bells and whistles, and as such is more affordable. 

Pros

• An affordable option for high-earners who do not need all the “extra” features included with the Professional Plan
• The non-cancellable clause gives you peace of mind that RBC Insurance cannot bump up your premium rate, cancel the coverage, or change the plan’s features
• Allows you to convert your disability insurance policy to a long-term care plan with no medical testing 

Cons

• No own-occupation rider
• No residual disability rider
• Stricter underwriting than some other RBC disability insurance products 

RBC Disability insurance products for businesses

Besides personal disability insurance plans, RBC Insurance offer a range of products aimed at small business owners:

• ‍Key personal disability insurance: Provides benefits to help you offset the financial impact of losing a key employee due to disability. ‍
• Buy-sell disability insurance: Ensures smooth business transition if a partner becomes disabled by allowing the remaining partners to buy his or her share in the business. ‍
• Business overhead expense insurance: Reimburses business expenses for a maximum period of two years in the event of total disability. ‍
• Business loan protector: Takes care of monthly loan payments if you are totally disabled.‍
• Wage loss replacement plan: A wage loss replacement plan is similar to group disability coverage but it provides better coverage. 

How much does RBC disability insurance cost?

Different RBC disability insurance products are priced differently. Generally speaking, premiums for RBC Simplified Disability Insurance are the most expensive, but the upside is that you do not need to undergo a medical exam. The Fundamental Series is the second-most expensive product in RBC’s suit of disability insurance products, followed by Professional Series, Quantum Series, Foundation Series, and Bride Series. 

Keep in mind that the cost of disability insurance depends a great deal on personal factors, such as:

• Age
• Gender
• Health and lifestyle 
• Occupation

For example, since the risk of developing a disability increases with age, a 50-year-old male will pay more than a 30-year-old male for the same level of coverage. Likewise, people who smoke pay higher premiums than their healthier counterparts. 

Policy-specific details, such as the length of the benefit and elimination periods, the benefit amount, and riders, also impact your overall cost of coverage. For instance, the shorter the benefit period, the greater the coverage cost, all other things being equal. 

The following table shows the monthly premium rates for the RBC Professional Series. These quotes are for someone with a low-risk occupation such as a doctor or lawyer. The sampled insured is a non-smoker while the sampled policy promises to pay $5,000 per month upon the successful completion of a 90-day waiting period until the insured turns 55. 

Note: This price table is meant solely to provide a rough estimate. Kindly speak to an advisor to get a personalized quote. Disability insurance premiums vary according to personal details, like age, health, gender, etc. 

How can I buy RBC disability insurance?

You can apply for disability insurance with RBC getting in touch with one of RBC’s advisors. You can contact RBC by calling 1-866-262-7920 or submit a request for them to call you through their website. You can also apply online if you are interested in RBC’s Simplified Disability plan. 

We always recommend working with an independent insurance broker who can shop the market for you to ensure you're getting the best rates. Contact us today to learn more.

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Conclusion 

RBC Insurance is one of the top insurance providers in Canada and offers a range of disability insurance products for all types of workers. Each of its disability insurance products is customizable, meaning you can buy the exact coverage you need. 

Interested in buying disability insurance from RBC but not sure if it will fit your budget? Don’t worry, Dundas Life has you covered. We will provide you with price quotes at no cost to you. Our experts will also help you at every step of the buying process, from answering your questions, handling paperwork, and customizing a policy to suit your unique needs. Book a call with an advisor today.

FAQs

Are there waiting periods before I can receive disability benefits from RBC?

Disability insurance plans typically include a waiting period — a short period that you must survive after becoming disabled before your policy starts paying out — and disability insurance plans offered by RBC are no different.

RBC offers you a large choice for the length of the elimination period — 30, 60, 90, 180, 365, or 730 days. At the time of purchase, you can select the waiting period length that works best for you. Generally speaking, the shorter the waiting period, the higher the monthly premiums are. 

Can I customize my RBC Disability Insurance policy to suit my specific needs?

Yes, you can customize your RBC disability insurance plan to suit your unique situation. RBC offers policyholders a number of options to customize their disability insurance plan, such as different coverage limits, benefit periods, elimination periods, and optional riders. These allow you to customize the plan as per your needs. 

Do RBC disability insurance plans offer riders?

Yes, you can add one or more riders to your RBC disability insurance policy to customize the coverage. The exact riders offered may vary from one disability insurance plan to another, but the most common riders on offer include, future income protection, partial disability, cost of living benefit, and accidental death and dismemberment. 

Can I cancel my RBC Disability Insurance policy if my needs change?

Yes, you can cancel your RBC disability insurance plan at any time. However, keep in mind canceling an existing policy without buying a new one will leave you unprotected. If you are finding it difficult to keep up with the monthly premium payments of your existing policy, consider increasing the length of the waiting period or reducing the benefit period to make it more affordable instead of going without coverage. 

Why should I get RBC Disability Insurance?

If you suddenly become sick or injured and are unable to work, how will you pay your living expenses? Long-term disability insurance offered by RBC provides you with a regular stream of income if you are disabled, allowing you to life comfortably and focus on what’s most important — your recovery. 

A long-term disability insurance plan from RBC will: 

• Provide you with a monthly benefit and help you maintain your present standard of living in the event an injury or illness prevents you from earning a paycheck
• Helps you pay off your debts, such as the mortgage
• Pay for day-to-day expenses
• Protect your life savings

RBC offers a range of disability insurance products. The best disability insurance policy for you will depend on your income, age, and occupation, plus the features each plan offers. An independent insurance broker, like Dundas Life, can help you pick the coverage that perfectly fits your need and profile. 

How to contact RBC Insurance?

If you want a quote for disability insurance from RBC, call them at 1-866-262-7920. Alternatively, you can contact Dundas Life and we will get you free quotes from RBC and other providers, making it easier for you to compare deals from the best providers in Canada and secure the lowest-possible rate.