What can affect your life insurance premiums?

The type of policy you select will impact the premium you will be required to pay. There are different types of policies to meet your varying needs.
At TD Insurance, we offer TD Guaranteed Acceptance Life Insurance and Term Life Insurance for the following terms:

• TD 10-Year Term Life

• TD 20-Year Term Life

• TD Term-100

For all term life insurance plans, as the duration of the term increases, so does the cost. A 10-year term costs less than a 20-year term which costs less than the Term-100. You can maintain the same coverage amount and manage the cost by changing the duration of the term. With TD Term Life Insurance, premiums are guaranteed and locked in for the term. The TD 10-year and 20-year term plans are renewable. The policy automatically renews at the end of each term until it expires at age 80. The premiums increase at renewal to reflect the insured person's age at that time. As long as the premiums are paid, Term-100 does not expire. However, the required payments stop once the insured person reaches the age of 100.

TD Guaranteed Acceptance Life Insurance does not require any medical exam and is issued automatically on submission of your application. Also, it does not expire, and premiums stop once the insured person reaches the age of 100.

The higher the coverage amount, the higher the premium because the insurer is taking on a higher risk. You can manage costs by adjusting your coverage amount but focus on getting adequate coverage so that your loved ones get the financial support they'll need if you suddenly pass away.

Not sure about how much coverage you need? Use the TD Life Insurance Calculator or call 1-877-397-4188 to speak with a TD Life Insurance licensed advisor.

Another factor influencing life insurance premiums is the insured person's age. Generally, if you're young, you will pay a lower premium. As you get older, there is a greater risk that your health deteriorates. This results in higher premiums. Applying for life insurance at a younger age could help you save money.

Males pay more for life insurance than females because statistically, men have a shorter life span. In Canada, the average life expectancy is 82 years for men and 84 for women.¹

Insurance companies could charge you a higher premium if you smoke as smoking affects a person's health and lifespan. Generally, an individual who uses any substance or product containing nicotine is considered a smoker. Premiums could be more than double for a smoker. However, if you are a smoker when you purchase an insurance plan but quit smoking later, you may become eligible for non-smoker rates from your provider. Definitions vary across different insurance providers but generally, a person who has not used any substance containing nicotine in the last 12 months is considered a non-smoker.

You may have to undergo a health assessment as part of the life insurance application process. Depending on the information in your application, this could include a medical exam with a healthcare professional and sometimes a review of medical records. You could pay more if you suffer from certain health conditions. Addressing controllable health conditions can help you manage your premiums. If you don't qualify for standard life insurance plans due to deteriorating health or other reasons, you still have options. At TD Insurance, we offer Guaranteed Acceptance Life Insurance, which can be applied for without any health questions or medical exams.

If your hobbies include high-risk activities like motorsport and skydiving, you may need to pay more to offset the additional risk taken on by the insurer. Working in an industry with a lot of occupational hazards could also result in an increased cost.

A life insurance policy can help protect the financial future of those you care about. If you're thinking about applying for life insurance but are not sure how much coverage you need, use the TD Life Insurance Calculator.

Here's an example of how much life insurance could cost:

Eric is a single, 30-year-old non-smoker who is in good health. He is a homeowner with a $150,000 mortgage and has no other debt. He makes $50,000 per year and his parents live with him.

If Eric decided to opt for $175,000 in coverage, it would cover 100% of the outstanding balance on his mortgage and leave $25,000 to pay off other expenses. That way, if he were to pass away, his parents could continue to live in that house.

Eric could get this amount of coverage for $18/month on a TD 10-Year Term Life Insurance plan.

It’s important to keep in mind that life insurance may not cost as much as you think. You can get quick a quote and apply online for TD Term Life Insurance or Guaranteed Acceptance Life Insurance. If you need any help, you can call 1-877-397-4188, option 1, Monday to Friday 8 a.m. to 10 p.m. and Saturday 10 a.m. to 6 p.m. ET to speak with a TD Life Insurance licensed advisor over the phone.

If you're already a TD customer, you can save 10% on a new TD 10-Year or 20-Year Term Life Insurance policy. This includes TD Auto Finance, TD Insurance Home and/or Auto, and TD Wealth customers. If you're not a TD customer, you can save 5% if you or your spouse is a graduate of an eligible Canadian post-secondary institution or a member of an eligible professional association. If you are a TD customer as well as a graduate/professional, you save a maximum of 10%.²

*1 Source – worldbank.org
2 The 5% or 10% premium savings is available to eligible applicants who apply for a new TD 10-Year or 20-Year Term Life Insurance policy. The offers cannot be combined with any other offer and is subject to change or may be withdrawn at any time.

TD Term Life Insurance is an individual life insurance plan underwritten by TD Life Insurance Company. Some restrictions may apply. Application subject to approval. See 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 TD Life Insurance licensed advisor regarding your specific situation. The information contained herein, is subject to change without notice.