What is life insurance?
Life insurance. Those are the two words that inspire a lot of questions. Questions like: “What exactly is life insurance?” “What type should I have?” and maybe most importantly “Do I even need it?” We’re here to explain the fundamentals of life insurance without all the confusing and technical language.
Life insurance can be a heavy subject. But let’s break it down and define what life insurance is – A life insurance policy is a contract between you and an insurance company to pay for a specified coverage amount in the event of your death. A coverage amount is selected by the policy owner, who pays a cost (known as a premium) to the insurance company. When the insured person dies and an eligible claim is made, a lump sum tax-free death benefit amount is paid out to the chosen beneficiary (the person/people the money is left to). It’s a way to help provide future financial security for the people you care about in the event of your death.
Life insurance simplified, is an opportunity to help provide financial support for those who depend on you, after your death. What’s the purpose of life insurance? It helps to financially protect those you care about when you pass away. It’s an act of consideration that allows you to help with their future. Your life insurance payment can be used to replace lost income, fund your child’s education or pay for your final expenses. Having life insurance is a way to give back to your loved ones.
What are some of the different types of life insurance?
When choosing the type of life insurance that best fits your needs, it helps to understand your financial situation. Here are four types of life insurance that TD Insurance offers, as well as things to consider with each product.
- TD 10-Year Term Life: This plan could be right for you if you’re dealing with a short-term loan such as a student or car loan, preparing for retirement or have a mortgage in its final 10 years. This plan provides coverage over a ten-year recurring period and is popular with people with shorter-term financial responsibilities. Your premiums remain the same for the 10-year period. It automatically renews at the end of the tenth year and provides coverage up until the insured person's age 80 when it expires. It can be converted, up to age 69, to a permanent plan such as the Term-100 plan.
- TD 20-Year Term Life: This policy could be right for you if you’re buying a new home, starting a family or are a newlywed preparing for the future. As the term suggests, this plan can help provide coverage for longer term financial obligations. Your premiums remain the same for the 20-year period. It automatically renews at the end of the twentieth year and provides coverage up until the insured person's age 80 when it expires. It can be converted, up to 69, to a permanent plan such as the Term-100 plan.
- TD Term-100: This plan does not expire and provides coverage for the insured person for as long as they live, at a premium that doesn’t change. Term-100 could be right for you whether you pass away tomorrow or live to be 100.
- TD Guaranteed Acceptance Life Insurance: This type of policy is focused on providing financial support for loved ones to help pay for funeral costs and other final expenses. It’s for seniors or those who have a health condition or a medical history that would disqualify them from standard life insurance plans. This plan does not expire and provides coverage for the insured person for as long as they live. Unlike other life insurance plans, no medical exam is required for this plan. Canadian residents between the ages of 50 and 75^1^ are instantly approved for coverage ranging from $5,000 to $25,000 with TD Guaranteed Acceptance Life Insurance.
Here’s your next step for getting TD Term Life Insurance. Visit us online and learn more about your insurance options so you can feel confident by choosing the coverage that fits your needs.
You can receive a personalized life insurance assessment in minutes with the TD Life Insurance Calculator.
You could get a quote in 60 seconds just by answering a few questions and apply for coverage in less than 10 minutes for a TD Term Life Insurance or TD Guaranteed Acceptance Life Insurance plan.
Need help? Our TD Advisors are always ready to help you find the option that you feel comfortable with. Give us a call at 1-877-397-4188, and we will work with you to answer any questions you might have.
TD Term Life Insurance and TD Guaranteed Acceptance Life Insurance are individual life insurance plans underwritten by TD Life Insurance Company. TD Term Life Insurance and TD Guaranteed Acceptance Life Insurance are currently not available for customers in Quebec. See Insurance Policy for coverage details, including limitations and exclusions.
1See Insurance Policy for definition of Canadian resident and other coverage details, including limitations and exclusions.