Adulting 101: some basic facts about life insurance

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If you’ve never thought much about term life insurance, it’s a good idea to know what it is and how it can benefit you as you grow older or your life changes.

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“If you drive a car, the law says you need to buy insurance, so you generally tend to learn about car insurance when you start driving,” says Chinyere Ezemenari, senior manager, direct life and health, TD Insurance. “But the whole idea of ​​buying term life insurance may be new to you at this point. There’s really no such thing as a bad question — including whether you need life insurance at all at this stage of your life. It’s all up to you. With TD Insurance you have access to online information and licensed life insurance agents to handle your questions.”

What is term life insurance?

Life insurance is a financial product that can pay out a lump sum amount to your estate or a tax-free lump sum amount to your designated beneficiary if you pass away.

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Do I have to be a Canadian resident to apply?

Eligibility requirements may vary depending on the insurance company. At TD Insurance, yes you do. That means you’re legally entitled to reside in Canada for at least the next year and you’ve been a resident in Canada for 183 of the past 365 days — the days do not need to be consecutive.

What are some reasons I might consider applying for life insurance?

Here are some examples of reasons you might consider life insurance. You might consider life insurance to cover the cost of a funeral if you pass away. You may want to leave money to parents or other family members. You may even want to leave money to a charity that you’re passionate about.

New relationships, getting married, having a child, or buying a home can create other reasons to apply for life insurance (see infographic).

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What are the different types of life insurance?

You can categorize life insurance as permanent life, which lasts for your whole life, and term life, which covers you for a given period of time. To maintain your plan coverage, you pay your premiums as scheduled.

What does the “term” mean in term life insurance?

At TD Insurance there are three “terms” for which you can apply: 10 years (10-Year Term Life policies from TD Insurance), 20 years (20-Year Term Life policies from TD Insurance) or a lifetime (Term-100). The term is the period in which your premiums are guaranteed not to change. Once your application is approved, the premium will remain the same throughout that term as long as you keep up your payments. The 10-Year and 20-Year Term Life policies from TD Insurance renews automatically at the end of each term until the person who is insured turns 80 — at that point the coverage ends.

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How do I pay for my insurance coverage?

The money you pay to buy insurance coverage is called a “premium.” At TD Insurance, you can pay by credit card or by direct deposit from your bank. You also have the option to pay monthly or annually.

How much will my premium cost?

In general, the younger you are the lower your premium. That’s because statistics show that younger people are generally healthier. To determine your premium cost, the insurer considers factors such as your age, gender, whether you smoke, your health status, lifestyle, the type of plan and the amount of coverage applied for.

What happens when the policy renews?

When the 10-Year and 20-Year Term life insurance policies from TD Insurance renew, the premium increases, reflecting the age of the insured person at that time. Only the TD Term-100 policy remains active for the entire life of the insured person and the premium always remains the same.

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How can I apply for insurance coverage?

You can complete an application for insurance online at the TD Insurance site.

You can also use the online TD Life Insurance Calculator to help give you a general idea of ​​how much coverage you may need at different stages in your life, based on the accuracy of the information you input into the TD Life Insurance Calculator.

If you’re just curious about how much term life insurance with TD Insurance might cost you for a specified amount of coverage, you can check your estimated price and receive a quote without providing your name or contact information and without any obligation to buy insurance.

“Some people are hesitant to look into life insurance because they believe that it’s too costly and applying is too complicated and time consuming,” says Ezemenari. “Applicants may be surprised that the price of coverage may cost less than they think — and an application can be conveniently completed on the TD Insurance website.”

For more information on TD Insurance visit the website, or contact a licensed life insurance agent to address your questions.

The price will be an estimated quote based on the information you provide. Your actual premium may change when TD Insurance assesses your individual circumstances based on the information collected during the application process.

This article was created by Content Works, Postmedia’s commercial content division, on behalf of TD Insurance.


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