Importance of life insurance in your retirement planning


Planning for retirement, just like all your early life stages, calls for re-assessment of your goals and plans. Whether you plan to retire by a beach or travel around the world, a solid financial plan can help you keep your retirement goals on track. In this article we will talk about how life insurance can be an important part of your retirement plan as well as the life insurance plans offered by TD Insurance.

Do you need life insurance after retirement?

There's no cookie-cutter answer to this, your need for life insurance after retirement depends on your own situation and needs. For example, if you have no major debts or big expenses like higher education for your kids or grandchildren and you can replace some of the lost income after you pass away, you may not have a need for life insurance. But if you have debts like a mortgage, car loans, student loans, or a family that depends on your income, considering a life insurance policy may be a viable option as it can help support your family financially when you pass away.

No matter which life insurance plan you choose, the death benefit is paid out in a tax-free lump sum to your named beneficiary, and they can use it however they choose.

One must also consider expenses like funeral costs. If you were to pass away can your family meet the financial obligations left behind?  

What happens to employer provided or a group life insurance after retirement?

You may ask — what about my employer’s life insurance that gets deducted from my salary?

Well, it does, but usually only while you're employed with that organization.

Once you retire or stop working, just like other employer group benefits, the group life insurance coverage may also stop. In this case, you may be able to convert that policy to an individual one if the group insurance conditions are met. Converting the group life insurance plan may cost higher than the subsidized company rate. Or you could purchase an individual life insurance policy for yourself with a provider of your choice. 

What if you already have life insurance?

If that's the case, you may want to review your existing life insurance policy. Is it provided by your employer and might cease once you stop working for them? If it's an individual plan, would you have sufficient coverage or a legacy to leave behind for your family? Have your needs changed? For example, if you have an existing TD 10-year or 20-year term life insurance plan and are looking to leave behind a legacy for your family, you could consider converting your plan to a Term 100 Lifetime Coverage.

What are some of the life insurance plans offered by TD Insurance?

Depending on your needs there are several life insurance options you could choose from with TD Insurance.

For shorter-term financial needs, the 10-Year Term Life Insurance plan could be suitable if you are under 69 years old and planning for retirement. This plan renews automatically at the end of each 10-year term and expires at age 80. The premiums increase to reflect your age at the time of renewal.

You may also choose to convert the TD 10-Year Term Life plan to the Term 100 Lifetime Coverage before the age of 69.

The Term 100 Life Insurance plan may be a good option for you if you are 69 years old and you need coverage for as long as you live. This policy could be suitable if you have grandchildren to take care of financially after you pass away, leaving them with a tax-free lump sum payment and legacy (if you choose to do so). The premiums are guaranteed to never increase.

If you are between the ages of 50 and 75 and if you're looking for coverage to help pay for your final expenses, the TD Guaranteed Acceptance Life Insurance may be right for you. This plan instantly approves coverage between $5,000 to $25,000 and the premiums remain unchanged. No medical exam is required to apply for this life insurance plan.

If you need advice, you can speak to a TD Life Insurance licensed advisor  to help understand what options may be suitable for you.  

How can you apply for TD Term Life Insurance?

Deciding on the right type of life insurance policy needs some planning and time. One thing that you may decide in a flash is choosing to retire comfortably without having to worry about the financial future of your family in case you pass away.

To calculate how much Term Life Insurance you might need when you retire, you can use our TD Life Insurance Calculator to estimate the coverage you may require and what it could cost. To apply for TD Term Life Insurance, you can get started with a quote online, select the coverage amount, the term length and complete your application online. You can also speak to a TD Life Insurance licensed advisor at any point to get more information. 

TD Term Life Insurance and TD Guaranteed Acceptance Life Insurance (not available to residents of the province of Quebec) are individual life insurance plans underwritten by TD Life Insurance Company. See Insurance Policy (TD 10-year Term life, TD 20-year Term life, Term 100 Lifetime & TD Guaranteed Acceptance Life Insurance Policy) for coverage details, including limitations and exclusions.

The content on this page is for general information purposes only and does not constitute legal, financial or insurance advice. Speak to a life licensed professional advisor regarding your specific situation. The information contained herein, is subject to change without notice.