Bank Comparison
RBC Mortgage Life Insurance:
Is It Worth It?
RBC charges approximately $75.60/month for mortgage life insurance on a $500K mortgage for a 35-year-old non-smoking woman. Over 20 years, that's $18,144. one of the highest rates among the Big Five.
RBC Monthly
$75.60
per month
20-Year Total
$18,144
for declining coverage
You Could Save
$9,744–$12,144
with term life
RBC vs. Independent Term Life
Based on a 35-year-old non-smoking woman, $500K mortgage, 20-year term.
| Feature | RBC | Term Life |
|---|---|---|
| Monthly Premium | $75.60 | $25–$35 |
| 20-Year Total Cost | $18,144 | $6,000–$8,400 |
| Coverage Type | Declining | Level (stays at $500K) |
| Beneficiary | The Bank | Your Family |
| Underwriting | Post-Claim | Full (Upfront) |
| Portable? | No | Yes |
| Can Be Denied After Death? | Yes | No |
What RBC Won't Tell You About Their Mortgage Insurance
RBC's HomeLine Mortgage Insurance is one of the most expensive bank mortgage life insurance products in Canada at $75.60/month for a $500K mortgage.
Like all bank mortgage insurance, RBC is the beneficiary. Not your family. The death benefit pays off the mortgage directly, giving your family no flexibility.
RBC uses post-claim underwriting. Your medical history is only fully reviewed when your family files a claim after your death.
Coverage is tied to your RBC mortgage. Switch lenders and you lose your coverage entirely.
RBC Mortgage Life Insurance — Frequently Asked Questions
Does RBC offer life insurance for mortgages?
Yes. RBC offers mortgage life insurance called RBC HomeLine Mortgage Insurance. It pays off your remaining mortgage balance if you die, but RBC — not your family — receives the payout. It is not the same as individual term life insurance, and coverage declines as you pay down your mortgage.
How much does RBC mortgage life insurance cost?
RBC mortgage life insurance costs approximately $75.60/month for a $500K mortgage for a 35-year-old non-smoking woman. Over 20 years, that totals $18,144 — for coverage that shrinks every year. By comparison, independent term life insurance typically costs $25–$35/month for the same coverage amount.
Is RBC mortgage insurance the same as life insurance?
No. RBC mortgage insurance is group creditor insurance — not individual life insurance. The key differences: RBC is the beneficiary (not your family), coverage declines as your balance goes down, and claims go through post-claim underwriting. With individual term life, your family gets the full payout and decides how to use it.
Can I cancel RBC mortgage life insurance?
Yes. RBC mortgage life insurance can be cancelled at any time without penalty. Most financial advisors recommend replacing it with an individual term life policy before cancelling to avoid any coverage gap. Contact RBC in writing to cancel once your new policy is in force.
What's better than RBC mortgage insurance?
Independent term life insurance is almost always better than RBC mortgage insurance. For a 35-year-old non-smoker, a $500K 20-year term policy typically costs $25–$35/month — less than half of RBC's rate — and your family (not RBC) receives the full $500K. Coverage is fully underwritten upfront so claims cannot be denied years later.
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