Understanding Lines Of Credit & Credit Protection

Grad school is some serious business. And you haven’t even entered the professional world yet!

But if you happen to have a student line of credit, then you probably feel like you’re well prepared to handle your program’s time commitment, and the financial one. And you should, because you are prepared.

As a professional student, you might be aware of the competitive student-specific interest rate offers and interest-only loan payment offers while you’re in school. The low-rates loan offers can be an effective supplement to your scholarship, student loan or any other way you might be paying for your education.

Don’t have a student line of credit? You could be eligible, and if you’re interested, you should connect with us to find out more. It’s a flexible borrowing option you can use and reuse, with which your credit limit will fluctuate with the cost of the program you’re in. More expensive program? Higher limit. You get the idea.

If you’ve already got your line of credit, one thing you might want to consider crossing off your to-do list is credit protection.

Credit protection…What’s that?

Great question. And it has a great answer — one that should take a load off your mind so school can have your full attention, as it should!

Credit protection is optional insurance that can help repay the outstanding balance on your student line of credit. Say you have $50,000 that you need to repay when school is over. That’s no joke, but you’ll be working and will be able to get that sorted out straight away, right? Right.

Unless… …and this is the bit that no one ever really wants to think about…

…something that you definitely did not expect, and couldn’t possibly foresee, like death or a covered critical illness, happens. And that “something” prevents you from working and/or being able to repay your debt.

Sure, credit protection requires a monthly payment. But it’s relatively low when compared to student loan debt. And, as far as considerations go, it may seem easy to dismiss, but if the sort of situation where you do need it arises, you’ll sure be relieved you got it.

If you have credit protection for your line of credit,2 and your situation is covered, TD Insurance could pay out up to $1,000,0001 towards:

  • Any unpaid balance on your line of credit
  • Any owed interest
  • Any discharge fees or prepayment charges

Think about how that outstanding debt payment could be reduced or eliminated and how much it could help your loved ones in your absence. Not too shabby. Not too shabby at all.

So, if you’d like to know more about TD Credit Protection, visit us at a TD branch or give us a call at 1-855-305-9071. And if you’d like to do some research on your own, you can use our fast Credit Protection Assessment Tool to see how TD Credit Protection can help protect you and your financial well-being.

See how credit protection can help you.

The content on this page is for general information purposes only and does not constitute legal advice. Coverages described herein may be subject to additional eligibility criteria, limitations and exclusions. In the event you make a claim, potential indemnification is also subject to the receivability of the claim and the type of coverage you bought.

In the case of conflict between the content on this page and your policy wordings, your policy wordings shall take precedence. Please speak to an Advisor or consult your policy wordings for further details.

1The insurer pays the benefit amount to The Toronto-Dominion Bank to be applied towards the outstanding line of credit balance subject to maximum coverage, limitations and exclusions as outlined in the Certificate of Insurance.

2Optional Line of Credit Critical Illness and Life Insurance provides life, accidental dismemberment and critical illness coverages. Accidental dismemberment coverage underwritten by TD Life Insurance Company ("TD Life"). All other coverages underwritten by The Canada Life Assurance Company. TD Life is the authorized administrator for this insurance. For complete details of coverage, including defined terms, benefits, features, limitations and exclusions, please refer to the Certificate of Insurance. Applications subject to approval.