RBC Insurance’s Universal Life Plan

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RBC Insurance’s Universal Life plan is available in face amounts of $50,000 to $10,000,000 to applicants from birth to age 80. Similar to other universal life plans on the market, their plan offers flexible premiums, and the investment account grows on a tax-sheltered basis. The insured can choose between a level and increasing death benefit. The former is designed to maximize cash values, while the increasing death benefit pays out the face amount plus the plan’s accumulation fund on the insured’s death. The investment account can be used as an emergency fund, to supplement the applicant’s retirement needs, or to offset future premiums.

RBC Insurance’s Universal Life plan offers a minimum investment guarantee of 4%—this can be an attractive feature in today’s low interest rate environment. The plan has several available add-on options, including: a disability and/or critical illness waiver of premium, accidental death coverage, or a long-term care rider. The long-term care rider is a valuable living benefit which pays out a daily lump sum payment in the event the insured is unable to care for themselves.

Unlike their term portfolio, preferred rates are not available on their Universal Life plan. RBC Insurance also trimmed their Universal Life line-up with the removal of their Foundation Life Universal product. This plan allowed for limited-pay cost of insurance options—where the insured’s cost of insurance charges could end after 10, 15 or 20 years.

RBC Insurance’s rates are very competitive among certain age groups, but less competitive among non-smokers; as an example, a 45-year-old male non-smoker who applies for $250,000 of Universal Life level-cost coverage would pay a minimum premium (i.e., the premium to keep the plan in force) of $193.00 per month.

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