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Converting your Canada Life Term Policy

Written by Shelter Bay

If you’re thinking about converting your RBC policy from Term to Permanent, it’s good to know the reasons why you should and how to go about it.

Below, we are going to look at how converting your RBC life insurance policy can help ease your mind so you can relax knowing your family is financially secure with permanent life insurance should something happen to you.

You probably bought term life insurance because it gave you both protection and it was affordable. You may have even bought a term that will be long enough to reach the goals you set on the day you bought it.

Perhaps your mortgage is down to a comfortable amount, you’re close to retirement, and/or your children are self-supporting now.

Now as you look at your new future, you’re wondering if you still need life insurance for other reasons; and want to make sure you make the right decision. One thing to think about is what if something happened to you a year after your policy expired?

Would your souse be able to maintain their current lifestyle?

One main reason why looking into permanent insurance before your term insurance expires is a good idea, is that you don’t have to take a medical exam when you convert it. So if you’re worried that you’re not as healthy as you were when you purchased your term insurance policy, you don’t have to be – that part is covered.

As well, there is a deadline in which you have to convert your RBC policy. If you miss that deadline to convert, you’ll have to take a medical exam.

Why Converting Your RBC Policy is a Financially Sound Decision

If your term insurance is still in place but will soon expire, chances are you’re going to outlive the term. If you don’t convert your policy and it expires, the life insurance company will keep all your premiums.

The Main Benefit of Permanent Life Insurance

This is where the financial benefits of permanent insurance changes this outcome. When you convert your RBC policy to permanent insurance, you have protection for as long as you live, as long as the premiums are paid.

There is also an investment component so it accumulates cash value on a tax-deferred basis. This means that you can get a load from built up savings in your permanent insurance and use it for whatever you want. You can use it for a vacation, home improvements or living expenses if you become ill.

With a permanent life insurance policy, you can also use the built up savings to pay your premiums.

Converting Your RBC Policy – RBC Life Insurance Conversion Clause

To find out if your term life insurance is convertible, check your policy’s deadline. It’s important to note that you don’t have to convert your entire policy, you can convert a portion of the face value to permanent insurance.

Seek help from an independent insurance professional to do the necessary paperwork.

If you’re converting your RBC policy, we can help. At Shelter Bay Financial Corp., we are a team of professional online life insurance brokers. We offer all our services online with screen share software so the entire process is quick and hassle free.

To learn more, please send us an email or call toll free to 1.888.498.5288.

Shelter Bay Financial Corp
Shelter Bay Financial Corp

Life & Health Insurance brokers working for Canadians

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