TD Life Insurance Review 2023

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Products and Features

TD Life Insurance offers three term life products and a guaranteed issue life product. They do not have a whole life or universal life plan in their product line.

Term Life Insurance

Term life insurance is the purest form of insurance since it has a single aim: To pay the insurance amount to your beneficiary. The protection lasts for a specific number of years — like 10, 20, or 30 years — or until you reach a particular age.

You will not find any added extras, such as an investment account, attached to this product. In a way this is a good thing because their absence keeps the premium rate low. In fact, term life insurance is the most affordable among all types of insurance.

If you want the best coverage at the best price and have temporary financial needs, term life insurance is likely to be right for you.

With this, you get a choice of the following three term plans.

Term-10

As you may guess, you get protection for 10 years with this plan. Term-10 could make sense for you if:

• Your home loan is in its final 10 years
• You have a car or student loan
• You will retire in a few years from now
• Your kids will soon become financially independent

Features

• Insurance coverage period is for 10 years
• Coverage amount is from $50,000 to $10 million
• Available for applicants between the ages of 18 years and 6 months prior to their 70th birthday
• Guaranteed level premium. That means your monthly or annual premium rate will not change during a policy term, which in this case is 10 years
• Automatic renewal after every 10 years without any medical underwriting until age 80
• Ability to convert your plan to permanent life insurance any time before you turn 69
• Preferred rates available
• Save up to 10% on your premiums if you are already a TD customer
• Save up to 5% on your premiums if you or your spouse have graduated from an eligible Canadian college or university or are a member of an eligible professional association

Term-20

You get 20 years of insurance coverage with this plan, but you can renew your policy at the end of the term if you want.

Term-20 could be the right choice for you if:

• You have recently got married and are planning to start a family
• You have recently purchased a house or planning to do so in the near future
• You have young children
• You plan to retire in the next two decades

Features

• Coverage period is for 20 years
• Coverage amount is from $50,000 to $10 million
• Available for applicants between the ages of 18 years and 6 months prior to their 60th birthday
• Guaranteed level premiums
• Automatic renewal at the end of every 20 years without proof of good health until you turn 80
• Ability to convert your plan to permanent insurance any time before age 69
• Preferred rates available
• Save up to 10% on your premiums if you are already a TD customer
• Save up to 5% on your premiums if you or your spouse have graduated from an eligible Canadian college or university or are a member of an eligible professional association

Term-100 (Permanent life coverage)

Though this plan has the word “term” in it, make no mistake, the coverage is as permanent as they come. You get lifetime coverage at a cost that does not change — even if your health does.

Term-100 from TD could be a good option for you if:

• You have one or more lifelong dependents
• You want to take care of your funeral and other end-of-life expenses
• You want to lock in low rates

Features

• Coverage amount available is $50,000 to $10 million
• Lifetime coverage
• Guaranteed level premiums
• Available for applicants between the ages of 18 years and 6 months prior to their 70th birthday
• This plan does not accumulate cash value

Permanent Life Insurance

As you may guess, this type of life insurance plan has no end date, provided you pay your premiums. Many permanent life policies also build cash value, but not the plan offered by TD life insurance company.

TD Guaranteed Acceptance Life Insurance  

Getting coverage when you have a serious health condition can be difficult. But that is not the case with TD Insurance.

TD Guaranteed Acceptance Life Insurance guarantees protection regardless of your health, as long as you meet the age criterion. You will not have to take a medical exam or answer invasive health questions to prove eligibility.

The coverage amount, however, is small — but that is not surprising. Guaranteed Acceptance Life Insurance is there to help you pay off your end-of-life expenses rather than help you leave an inheritance to your loved ones.

Features

• Lifelong coverage
• Acceptance is guaranteed for people between the ages of 50 and 75
• Does not require a medical exam
• Coverage amount available is $5,000 to $25,000
• Guaranteed level premiums

Term Life Insurance – Prices Based on Customer Characteristics

A lot goes into term life insurance coverage pricing besides your age and gender. For instance, life insurance takes into account characteristics unique to you — like your health, smoking status, and hobbies — while setting your rates. Since every insurance company relies on its own algorithm to set rates, insurance cost varies from one provider to another.

This begs the question — how affordable are TD Life Insurance term life rates for different characteristics?

To find out, we grabbed a few quotes from the insurer. These quotes are for 20-year term life policy with $400,000 in coverage. Our sample applicants were healthy, non-smoking men and women of different ages.

Term Life Insurance Review – Price Comparison vs. Competitor Products

No TD life insurance review would be complete if it did not answer one key question — how does TD life insurance stack up against its competitors when it comes to price?

Insurance cost is the main factor when buying life insurance for most people. If you do not want to end up paying extra for life insurance protection, compare quotes from different providers.

We twice compared TD Life Insurance against Sun Life — one of its key competitors —and found the former to be noticeably cheaper for 40-year-old men. In the case of 60-year-old women, the price difference, however, was marginal.

Example 1: 40 Year Old Male, Non Smoker, Regular Health, 20 Year Term: 

TD life insurance $400K - $48.00

Sun Life $400K - $50.13

Cost Savings over 20 years: $511

Example 2: 60 Year Old Female, Non Smoker, Regular Health, 20 Year Term: 

TD life insurance $250K - $168.00

Sun Life $250K - $168.07

Cost Savings over 20 years: $17

Why We Like TD Life Insurance

• Easy to get an online quote

Unlike many Canadian life insurance companies, TD life insurance provides online quotes. To get one, all you have got to do is answer a few questions, like your gender, birthdate, province of residence and smoking status. TD online insurance will not ask for personal details like your name, phone number, and email address.

• You can apply online or over the phone

Applying for a life insurance policy from TD Insurance is simple and easy. You can do that either online or over the phone. All the same, you may have to take a medical exam, unless you want to buy guaranteed acceptance insurance.

• Various discounts available

TD Insurance rewards existing customers with a discount of up to 10% on their life insurance policy. You can also cut down the insurance cost by up to 5% if you or your spouse have graduated from an eligible Canadian college or university or are a member of an eligible professional association.

• Term life plans convertible to permanent coverage

You can convert your 10-year or 20-year term life plan into permanent coverage without any medical underwriting before age 69.

What We Did Not Like About TD Life Insurance

Limited product range

TD life insurance has a very limited product range, only three term life plans and a guaranteed issue product. Missing from its product line is a 30-year term life policy, a whole life plan, and a universal life plan.

Bare-bones term life coverage

Even though TD Insurance offers up to $10 million in term life coverage, its plans are not very customizable. You may not be able to add various riders that other life insurance companies provide, like child term riders, critical illness rider, and more.

Premium rates are not the most affordable

TD Life insurance rates are competitive but not the cheapest. Similar plans from some leading insurers are considerably cheaper.

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Conclusion — Is TD Life Insurance Right for You?

Unlike many Canadian life insurers, TD Insurance provides online quotes and lets you apply online. Its term life plans, while competitively priced, are not the most affordable or customizable. Nevertheless, if you are looking for bare-bone term life coverage or a guaranteed issue life policy, you may want to add TD Insurance to your list. If you want a whole life or universal life policy, you will need to look elsewhere.

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