Amidst a myriad of bank-owned insurance companies in Canada, BMO, RBC and TD insurance are the most popular companies. They possess strong financial capacity and a high proportion of skilled staff. However, each company may have different product lines that suit different target customers. If you have any intention to buy insurance from any of the companies, or simply to just want to know the differences between them, this article is definitely for you.
BMO
BMO, also known as The Bank of Montreal, is ranked as the fourth biggest Canadian bank. In terms of ratings, BMO Insurance is rated A (Excellent) by A.M Best in terms of financial strength.
| Category | Plans available |
| Term Life Insurance (1) | Term Life Insurance ($100,000 to $5,000,000 in coverage |
| Permanent Life Insurance (3) | Term-100 ($50,000 to $5 million in coverage) Easy One Life ($50,000 to $5 million in coverage) Guaranteed Life Plus (limited to $500,000 in maximum) |
| Whole Life Insurance (1) | BMO Whole Life Plan |
| Universal Life Insurance (1) | BMO Universal Life Plan |
RBC
RBC Insurance is the brand name for the insurance operating entities of the Royal Bank of Canada (RBC), and is one of the largest bank-owned insurance providers in Canada. The company offers a multitude of insurance products, including life, disability and critical illness insurance.
RBC Life Insurance Company is rated A+ as of March 2018 by A.M. Ratings. Due to its affiliation with the Royal Bank of Canada, RBC Insurance has a solid financial backup to develop without fear of financial problems that may potentially affect underwriting.
| Category | Plans available |
| Term Life Insurance (1) | RBC Simplified Term Life Insurance ($50,000 to $1,000,000*, *Age 56 and older: up to $500,000) YourTerm Life Insurance ($1,000,001 to $25,000,000*, *Age 56 and older: from $500,000) |
| Permanent Life Insurance (1) | Term-100 (coverage starting from $50000) Guaranteed Life Insurance ($5000 to $40,000 in coverage) |
| Whole Life Insurance (1) | RBC Growth Insurance ($25,000 to $25,000,000 in coverage) |
| Universal Life Insurance (1) | RBC Universal Life Insurance Plan |
TD
Headquartered in Toronto, TD Insurance is smaller in size compared to the above carriers. However, it is part of the TD Bank Group, one of Canada’s largest financial services organizations. Yet, ratings from TD are still unknown.
| Category | Plans available |
| Term Life Insurance (1) | TD Term Life Insurance (Maximum Coverage Amount: $10 million) |
| Whole Life Insurance (1) | TD Guaranteed Acceptance Life Insurance ($5,000 and $25,000 in coverage) |
Products of BMO, TD and RBC
| BMO | RBC | TD |
| Term Life Insurance – Terms can range from 10, 15, 20 years (renewable) – 25-year and 30-year term available (non-renewable) – Convertible | Term Life Insurance – 10, 15, 20 or 40 years (and any period in between) – No medical insurance available – Renewable – Convertible | Term Life Insurance – Only limited to 10 and 20 years |
| Permanent Life Insurance – Term-100 available – No medical insurance included (Easy One Life) | Permanent Life Insurance – Term-100 available – No medical insurance included | Permanent Life Insurance – Term-100 available |
| Universal Life Various investment options: – Guaranteed-interest accounts: minimum guaranteed rate of return – Equity-linked investment accounts: returns are calculated according to the performance of some of Canada’s most recognized money managers – Guaranteed Market Indexed Accounts and the Enhanced Market Indexed Account: returns are based on equity market performance and net rates of return | Universal Life Various investment options: – Daily Interest Options – Guaranteed Interest Options – Variable Interest Options |
Which is the best?
Based on what we’ve discussed so far, we can see that RBC and BMO offer more appealing deals. They provide clients with a plethora of flexible choices for the customers.
As for price, since the products of each company are not designed similarly, it’s hard to make a price comparison between three companies.
Pros and Cons
Plus points
- All companies have a very strong financial base, and thus, customers can entrust their money to the companies
- All companies have a wide network of brokers and agents across Canada.
- Term life insurance from the three companies is convertible to whole life insurance
| BMO | RBC | TD |
| – The price for term life insurance is 2% less than other competitors – Bundle insurance available (Guaranteed Life Plus, which is a bundle of whole life insurance and accidental death benefit insurance) – The Compassionate Benefit Program: allow clients to apply for their policy’s death benefit in advance of their death – Convertible | – A wide range of options for term life insurance: 10, 15, 20 or 40 years (and any period in between) – Strong ratings – Guaranteed Insurance Plans available | – Discounts for preferred customers – Sample contracts available on their websites |
Minus points
| BMO | RBC | TD |
| – Traditional procedure: still paper applications – Applicants have to apply through agents since BMO Insurance doesn’t let clients buy life insurance online – Term 25 and 30 are not renewable – Medical records required for term life insurance | – Quite expensive for smokers – Traditional procedure: still paper applications | – Very limited choices for customers in terms of plans and riders – Not rated by independent organizations |
The bottom line
To summarize, we believe that of the three companies, RBC and BMO have more perks. Premiums by BMO are slightly cheaper, and they have specialized programs for their clients. However, when it comes to term life insurance, their requirements and options are not as flexible as RBC. As to TD insurance, they seem to have limited options for life insurance, although they try to provide potential clients with a lot of sample contracts on their official website.
For further consultancy and detailed quotes from each company, please refer to a trusted insurance brokerage service like Insurance Direct Canada, one of Canada’s most trusted insurance brokers.
There are many more good insurance companies that are not bank-owned, you can have a look for reference: Sun Life review, Manulife review, iA Financial review, Desjardins review, etc. For comparison, there are ones like Manulife vs. iA Financial. All are available via the Insurance Company Reviews button above.
