Life Insurance: Frequently Asked Questions

Life insurance

Q. What is Life Insurance and when is the right time to get Life Insurance?

A. In general, a life insurance policy is a contract between you and an insurance company. You agree to make regular premium payments and in return, the insurance company agrees to pay out a tax-free lump sum amount to your beneficiary upon your death, subject to the claim meeting the terms of the policy You choose the amount that will be paid out to your beneficiary during the application process.

The right time to get life insurance can be different for different people. One factor to consider when thinking about getting life insurance is whether you have dependents or others who rely on you for their financial security.

Some people inquire about life insurance during major life events, such as:

There are also a number of reasons to consider purchasing life insurance at a young age.

We understand that different life stages present their own unique needs. TD Insurance offers several Term Life Insurance plans.

Learn more about your options with TD Life Insurance

Q. How does Life Insurance work?

A. In general, term life insurance provides coverage on a person’s life for a specified period of time. When purchasing term life insurance, the amount you pay for the insurance is usually fixed for the length of the term specified in the policy.

The life insurance policy will pay a specified amount of money to your estate, or the person chosen in the application, called the beneficiary, in the event of your death. In the application, a coverage amount is selected by the policy owner, who pays a cost (known as a premium) to the insurance company.

Visit the Term Life Insurance quote tool

Q. What are the different types of Life Insurance offered by TD Insurance?

A. There are 4 types of Life insurance offered by TD Insurance.

  • TD 10-Year Term Life
  • TD 20-Year Term Life
  • TD Term-100
  • TD Guaranteed Acceptance Life Insurance

TD 10-Year and 20-Year Term Life insurance policies automatically renew every 10 and 20 years, respectively, at which time premium costs increase to reflect your age at the time of renewal. For TD 10-Year and 20-Year Term Life insurance policies, premiums are guaranteed not to change for each 10-year or 20-year period. Both term life policies expire on the life insured person’s 80th birthday.

For TD Term-100 life insurance, policy premium costs are guaranteed to remain the same. They are payable until the insured person turns 100 years old. Although coverage continues, there are no premium payments after the age of 100. The policy will remain active until the insured person passes away.

You can choose to convert a TD 10-Year or 20-Year Term Life insurance policy to a TD Term-100 life insurance policy at any time, up to and including the policy anniversary closest to your 69th birthday, with no further questions or medicals required.

Guaranteed Acceptance Life Insurance is a permanent life insurance policy you can obtain regardless of your health. The premium costs are guaranteed to remain the same. To be eligible you must be a Canadian resident. You must also be within the ages of 50 and 75. When you reach age 100, your premium payments cease, and the coverage continues until a death benefit is paid. Coverage is available from $5,000 to $25,000.

Learn more about TD Guaranteed Acceptance Life Insurance for Canadians or get a quote.

Q. How much Life Insurance coverage do I need?

A. It can vary. The amount of coverage you need depends on your specific circumstances. For example, family needs, debts, and other obligations.

A first step you can take to find out how much coverage you need is to determine how much money your loved ones would need if you were to pass away. You can consider factors such as:

  • Lost income
  • Outstanding loans and debts
  • Your children’s education costs and
  • Your family’s lifestyle.

The TD Life Insurance Calculator is available to help you estimate how much life insurance you may need for you and your family.

Q. How long do I need Life Insurance for?

A. How long you need life insurance for will depend on your specific circumstances.

Some factors to think about when you estimate how long you need life insurance for could include:

  • The reasons why you’re thinking about getting life insurance
  • Do you have any long-term financial obligations?

For example, if you have a 20-year mortgage, it might make sense for you to get a 20-year term life insurance policy.

Learn more about your options with TD Life Insurance

Q. Why is your health information asked for life Insurance?

A. This is required to ensure you are eligible for coverage and may also be used to investigate and adjudicate your claims, and to help manage and assess our risks.

We collect the information we need and only use it for the purposes explained to you.

Q. What is underwriting?

A. When it comes to life insurance policies, underwriting is the process used by insurance companies to determine the level of risk involved in providing coverage for an individual.

Various factors such as an applicant's age, sex, health, lifestyle, coverage amount, and medical history are studied. Applicants are then assigned a classification.
The process begins with the application that will include questions on health and lifestyle. For TD Term Life Insurance, you could be instantly approved if you are eligible. If not instantly approved, the application is reviewed by an underwriter. After this review, some applicants may need to undergo a medical exam.

Underwriting is used to decide whether to approve the application or not. It also plays a role in determining how much the applicant will pay for coverage.

Term Life Insurance

Q. How much does TD Term Life Insurance cost?

A. The cost depends on your age, sex, health, lifestyle, smoking status, policy type and coverage amount amongst other factors.

For example, at TD Insurance, a 35-year-old female who does not smoke and is in good health can get $400,000 of coverage for as low as $20 per month. This estimate is based on a TD Term-10 plan.

Use the TD Life Insurance Calculator - answer a few questions and we'll calculate how much life insurance coverage you may need and provide you with a premium amount.

Q. What are the factors considered in calculating premiums?

A. Insurance companies take into consideration a variety of factors when calculating the premium. It's important to understand these factors, which may include your overall health, lifestyle, age, sex and smoking status.

Q. Who is eligible for TD Term Life Insurance?

A. If you’re a Canadian resident and fall within the age requirements for term life insurance, you’re eligible to apply for Term-10, Term-20 and Term-100 life insurance from TD Insurance.

A Canadian resident is any person who:

  • Is legally entitled to reside in Canada for at least the next year, and
  • Has been a resident in Canada for 183 of the past 365 days. Days do not need to be consecutive.

Age Requirement:

  • For Term-10 and Term-100, the applicant must be between the ages of 18 years old and 6 months prior to their 70th birthday.
  • For Term-20, the applicant must be between the ages of 18 years old and 6 months prior to their 60th birthday.
  • If you are between the ages of 50 and 75, you could be instantly approved for coverage through TD Guaranteed Acceptance Life Insurance.

Additionally, your application may need to go through underwriting before final approval. If you do not qualify, your application for life insurance may be denied.

 Get started with a TD Term Life Insurance quick online quote.

Q. Do I need a medical exam for TD Term Life Insurance?

A. Your sex, age, the amount of coverage you’re applying for, your health status and medical history will all determine whether or not a medical exam is required.

If it is determined that a medical exam is required, we will arrange for an in-person visit with a nurse at no cost to you.

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