RBC Insurance Enhances Its Term Exchange Privilege: More Flexibility, More Time, More Options
RBC Insurance recently announced meaningful enhancements to its Term Exchange Privilege, giving clients more flexibility and more time to adapt their life insurance as their needs evolve.
This is a positive change, especially for clients who start with shorter-term coverage and want the ability to extend protection later without worrying about changes to their health.
Here’s what’s changed and why it matters.
What Is the Term Exchange Privilege?
The Term Exchange Privilege allows you to exchange your existing term life insurance policy for a longer-duration term policy without providing new medical information.
In simple terms, it’s a built-in safety net. If your health changes in the future, you still have the option to extend your coverage.
What’s New with RBC’s Term Exchange Privilege?
For new RBC YourTerm® policies issued on or after December 1, 2025, RBC has introduced several industry-leading improvements.
- A Longer Exchange Window
Previously, clients had 5 years to exercise the exchange option.
Now, that window has been extended to 8 years.
This gives you more time to:
- Buy a home
- Start or grow a family
- Reassess your long-term needs
- Make changes without feeling rushed
- More Term Types Are Eligible
In the past, only Term 10 policies were eligible for exchange.
Now, all RBC term lengths shorter than Term 40 are eligible.
This means more flexibility regardless of which term length you choose at the outset.
- More Choice in What You Can Exchange Into
Previously, exchanges were limited to Term 15, Term 20, or Term 30.
Under the new rules, eligible policies can be exchanged into any longer term length, as long as:
- The new term is at least 1 year longer than the original
- Age and product eligibility rules are met
This allows for much more tailored planning as your life changes.
Important Things to Know
- The exchange privilege can only be used once, based on the original policy.
- These enhancements only apply to policies issued on or after December 1, 2025.
- Existing policies issued before that date do not qualify for the new enhancements.
- The enhanced exchange rules are not available for:
- Policy changes (such as rate class changes or removing exclusions)
- Policy reinstatements
If someone with an older policy wants access to the new features, that would require a policy replacement, which involves a full review and underwriting.
Why Term Exchange Privilege Matters for Clients
Many people start with term life insurance to cover short-term needs, such as:
- Income protection
- Mortgage coverage
- Young children
Over time, those needs often extend longer than originally expected.
These enhancements give clients:
- More time to decide
- More flexibility to adapt
- Protection against future health changes
In short, it makes term life insurance planning less rigid and more forgiving.
ALSO READ: Exploring Life Insurance Term Exchange Options
Final Thoughts
Life rarely follows a straight line. Insurance works best when it’s built with flexibility in mind.
If you’re considering term life insurance, or already have an RBC policy and want to understand how these changes might affect your planning, it’s worth having a conversation about how to structure coverage today while keeping options open for tomorrow.
– Jeff
*The Royal Bank of Canada, RBC Insurance and RBC and their logos and brandmarks are respectively owned and copyright of The Royal Bank of Canada.
**Disclaimer: This article is intended for general informational and educational purposes only and does not constitute personalized insurance, financial, legal, or tax advice. Insurance needs, policy features, costs, and suitability vary based on individual circumstances and specific contract provisions. Coverage availability and terms are subject to insurer underwriting and approval. Readers should review their own situation carefully and consult with a licensed insurance advisor before making any insurance decisions or changes to existing coverage.