Universal Life Insurance Loans - Personal Insurance

Universal Life Insurance Loans

RBC Insurance? is pleased to announce the details of the Royal Bank of Canada Universal Life Insurance Loans program.

Who is eligible? This program is available to RBC Insurance policy owners and will be administered through the Private Banking arm of Royal Bank of Canada. There are several criteria that the policy owner needs to meet before being eligible for a loan under the program:

> The policy must be an exempt Universal Life insurance policy.

> In all provinces except Quebec the policy owner may be an individual, trust or corporation. Certain restrictions apply. The borrower must be an individual and must be a life insured under the policy.

> In Quebec, the policy owner must be a corporation. Certain restrictions apply. The borrower must be an individual and must be a life insured under the policy.

> The borrower must be a Canadian resident.

> The beneficiary of the policy must be the policy owner or a family member (spouse, same-sex partner, child or grandchild) of legal age.

> Consent to the loan and assignment may be required from the policy owner's spouse, any non-minor dependants and the beneficiary under the policy.

> Proof of independent legal advice is required from the borrower.

How are the loans structured?

The Loans program will be set up on a Royal Credit Line? basis, accessible through the policy owner's Personal Deposit Account by way of cheque, Automatic Banking Machine, Telephone Banking or Internet Banking. Loans are repayable on demand and interest is payable monthly.

What is the cost of borrowing? The cost of borrowing will be based on the Bank's Prime lending rate plus a premium and a set up fee will be required.

How much can my client borrow? > Up to 90% of CSV if policy is invested in daily interest or guaranteed interest accounts > Up to 50% of CSV if policy is invested in equities or bond index investments Minimum loan amount: $ 100,000 Maximum loan amount: $2,000,000

How will the loans be assessed? Normal Royal Bank of Canada credit assessment criteria will apply:

> The borrower's debt serviceability must be demonstrated from current employment, pension or other investment income. The borrower's Debt Servicing Ratio for this loan is not to exceed 25%; Total Debt Servicing not to exceed 40%.

> Loan not to exceed 20% of borrower's total financial investments (excluding policy CSV).

> Loan applications will be originated via "Casper" and a credit score must be "C" or better. The borrower or policy owner must not be operating a company as determined by Royal Bank of Canada.

Additional security may be required as collateral, depending on the credit approval.

How does my client apply for a loan? To apply for a Royal Bank of Canada Universal Life Loan or for more information, contact RBC Private Banking Canada.

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RBC Private Banking Canada

National Office RBC Private Banking 320 Front St., 3rd Floor Toronto, Ontario M5V 3B6 Transit 809 Phone 416-974-8745 Fax 416-955-8228

British Columbia Region RBC Private Banking 1055 West Georgia St., 5th Floor Vancouver, BC V6E 3S5 Transit 920 Phone 604-665-6717 Fax 604-665-3292

Prairies Region RBC Private Banking 335 8th Avenue SW, 3rd Floor Calgary, Alberta T2P 1C9 Transit 8519 Phone 403-299-4501 Fax 403-292-3767

Ontario Region RBC Private Banking 200 Bay Street, Suite 600 Toronto, Ontario M5J 2J5 Transit 3426 Phone 416-974-3249 Fax 416-974-5380

Quebec & Atlantic Region RBC Private Banking 1 Place Ville Marie, Suite 600 Montreal, Quebec H3C 3A9 Transit 1871 Phone 514-874-7752 Fax 514-874-6915

Key Contacts

Barbra Fischer National Manager Credit Solutions barbra.fischer@

Garry Hayes Regional Manager Credit Solutions garry.hayes@

Marian Major Regional Manager Credit Solutions marian.major@

Jennifer Shaw Regional Manager Credit Solutions jennifer.shaw@

Marcel C?t? Regional Manager Credit Solutions marcel.cote@

For more information, please visit canada

Underwritten by RBC Life Insurance Company. TM Trademark of Royal Bank of Canada. ? Registered trademarks of Royal Bank of Canada. Used under license.

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