Is TD Life Insurance Worth It? Full 2025 review
Our expert's opinion on TD
TD Insurance offers a streamlined selection of life insurance plans, primarily focusing on term life and a no-medical permanent option, with limited riders and premium flexibility.
Positioned for simplicity and digital convenience, TD's life insurance undercuts some competitors on price for basic term policies, especially when purchased online, but lacks the product breadth and customization of larger, advice-focused insurers.
These products are best suited for younger individuals or families seeking straightforward, affordable term life insurance, such as for mortgage protection, who are comfortable with a digital application process.
While an online portal is available for policy management, the insurer's public customer satisfaction score is exceptionally low with a Trustpilot rating of 1.2/5 from over 1,000 reviews, and claim processing times are not publicly disclosed beyond a 10-business-day receipt confirmation.
- ✅10% discount for new online applications.
- ✅Simple online quote and application process.
- ✅Term policy conversion guarantee to age 69.
- ✅No-medical insurance option for applicants aged 50–75.
- ✅Online portal for policy management.
- ✅30-day free look period for a full refund.
- ❌Extremely low public customer satisfaction rating (1.2/5 Trustpilot).
- ❌Limited permanent life insurance options and riders.
- ❌Significant surrender charges in early policy years.
- ❌No live chat support for life insurance products.
- ❌Reported claims delays and communication issues.
Our expert's opinion on TD
- ✅10% discount for new online applications.
- ✅Simple online quote and application process.
- ✅Term policy conversion guarantee to age 69.
- ✅No-medical insurance option for applicants aged 50–75.
- ✅Online portal for policy management.
- ✅30-day free look period for a full refund.
- ❌Extremely low public customer satisfaction rating (1.2/5 Trustpilot).
- ❌Limited permanent life insurance options and riders.
- ❌Significant surrender charges in early policy years.
- ❌No live chat support for life insurance products.
- ❌Reported claims delays and communication issues.
Score- ✅10% discount for new online applications.
- ✅Simple online quote and application process.
- ✅Term policy conversion guarantee to age 69.
- ✅No-medical insurance option for applicants aged 50–75.
- ✅Online portal for policy management.
- ✅30-day free look period for a full refund.
Why Trust Hellosafe?
Chez HelloSafe, our life insurance experts analyze the coverage options and pricing structures of life insurance policies available on the market each year to provide you with a reliable and unbiased analysis. Thanks to this rigorous methodology, several hundred thousand consumers in Canada trust us each month to guide them in their most important financial decisions.
TD Life Insurance Guarantees
As a leading bancassurance provider in Canada, TD Insurance offers accessible life insurance solutions integrated with its banking services.
TD's product lineup is designed to be straightforward, with term life options featuring a 10% discount for online applications and permanent plans available without a medical exam for eligible applicants.
Pricing is competitive, though premiums for smokers are significantly higher, often by 50% or more, compared to non-smokers.
- Term Life Insurance: Offers coverage for 10 or 20-year terms, premiums are guaranteed for the term, convertible to permanent coverage until age 69.
- Permanent Life Insurance: Provides lifelong coverage with level premiums, includes a no-medical option for applicants aged 50-75, builds cash surrender value over time.
Optional riders:
- Accidental Death
- Waiver of Premium
- Conversion Guarantee
| Feature | Term Life | Whole Life | Universal Life | Hybrid |
|---|---|---|---|---|
| 🪙 Death benefit | Yes | Yes | ❌ | ❌ |
| 📈 Cash value accumulation | ❌ | Yes | ❌ | ❌ |
| 💸 Policy loans | ❌ | Yes | ❌ | ❌ |
| 🛡️ Available riders | Accidental Death, Waiver of Premium | Limited options | ❌ | ❌ |
| 🔄 Conversion guarantee | Yes, up to age 69 | ❌ | ❌ | ❌ |
| 📈 Participating dividends | ❌ | ❌ | ❌ | ❌ |
| 💲 Cost of key riders | 3–5% of premium | ❌ | ❌ | ❌ |
| 🔄 Premium flexibility | Limited | ❌ | ❌ | ❌ |
| ⏳ Surrender charges | ❌ | Yes, declining | ❌ | ❌ |
| 🎂 Issue age range | 18–69 | 50–75 (No-Medical) | ❌ | ❌ |
| 🔒 Guaranteed level | Yes, for term | Yes, for life | ❌ | ❌ |
How much does TD life insurance cost?
TD's life insurance premiums are calculated based on a detailed risk assessment of each applicant.
The insurer evaluates personal factors such as age, health, and lifestyle, along with policy specifics like the desired coverage amount and term length, to determine the probability of a claim.
This underwriting process ensures that the premium accurately reflects the level of risk the policy represents.
- Age: Premiums increase with age, with each decade adding approximately 15% to the base cost.
- Health status: The presence of pre-existing conditions or a poor health history can increase premiums by 20% or more.
- Smoker status: Smokers are considered higher risk and typically pay around 50% more than non-smokers for the same coverage.
- Coverage amount: The premium is directly proportional to the death benefit, increasing by about 10% for each additional $100,000 of coverage.
- Payment term: Longer terms, such as a 20-year policy, will have higher premiums than shorter 10-year terms.
- Rider costs: Adding optional benefits like an Accidental Death or Waiver of Premium rider will increase the premium by an estimated 3–5%.
| Profile | Coverage amount | Non-smoker premium | Smoker premium | Professional premium |
|---|---|---|---|---|
| 30 years old, healthy | $500,000 | $32/month | $48/month | $30/month |
| 45 years old, pre-existing condition | $250,000 | $58/month | $90/month | $55/month |
| 40 years old, healthy professional | $1,000,000 | $68/month | $105/month | $65/month |
The Surrender Charges for TD Life Insurance
For TD permanent life insurance policies that accumulate cash value, a surrender charge is applied if the policy is cancelled during the initial years. This charge allows the insurer to recover the upfront costs of issuing the policy. There is a pre-defined waiting period during which these charges apply; they are highest in the first year and decrease systematically each subsequent year until they are eliminated. The surrender charge is deducted directly from the policy's accumulated cash value, which reduces the final amount—the cash surrender value—paid out to the policyholder upon cancellation.
| Year | Fee % | Example & Tax treatment |
|---|---|---|
| 1 | 90% | $10,000 returned on $100,000 paid. Any gain over the policy's adjusted cost basis (ACB) is taxable as ordinary income. |
| 2 | 70% | $30,000 returned on $100,000 paid. Any gain over the policy's ACB is taxable as ordinary income. |
| 3 | 50% | $50,000 returned on $100,000 paid. Any gain over the policy's ACB is taxable as ordinary income. |
| 4 | 40% | $60,000 returned on $100,000 paid. Any gain over the policy's ACB is taxable as ordinary income. |
| 5 | 30% | $70,000 returned on $100,000 paid. Any gain over the policy's ACB is taxable as ordinary income. |
| 6+ | 0% | $100,000 returned on $100,000 paid. Any gain over the policy's ACB is taxable as ordinary income. |
Financial Impact of Surrender Timing
To illustrate the financial impact of timing, consider a policy with a $100,000 cash value.
- Surrendering in year 1 incurs a 90% charge ($90,000), resulting in a net payout of $10,000.
- Surrendering in year 5 incurs a 30% charge ($30,000), resulting in a net payout of $70,000.
The Exclusions and Limitations of TD Life Insurance
TD life insurance policies contain specific exclusions under which a death benefit will not be paid:
- Suicide No benefit is paid if death results from suicide within the first 12 months of the policy start date.
- Criminal acts No benefit is paid if death occurs while the insured is committing or attempting to commit an illegal act.
- Extreme sports Coverage excludes death resulting from participation in high-risk or adventure sports.
- Private aviation The policy does not cover death resulting from accidents in non-commercial or private flights.
- War or terrorism No benefit is paid for death resulting directly from acts of war or terrorism.
- Substance abuse Claims are excluded if death results from the misuse of non-prescribed drugs or alcohol.
- Misrepresentation The policy is void if material health or lifestyle information was misrepresented on the application.
- Assistance services Additional support like teleconsultation, repatriation, or legal assistance is not included.
What Customers Think of TD's Life Insurance
| Review site | Rating and number of reviews |
|---|---|
| Trustpilot | 1.2/5 (1,000+ reviews) |
The following points summarize the feedback from clients who have subscribed to a TD life insurance policy:
✅ A simple online quote and application process is often cited as a positive feature.
❌ A common complaint involves significant delays in claims processing and poor communication.
❌ A number of customers reported difficulties with policy cancellation and unhelpful customer service.
❌ The lack of clarity in policy documentation is another point of negative feedback.
Here are examples of reviews left online:
- "The online quote was fast and easy, and I had coverage within minutes. Satisfied with the process.", Jane D., May 2023, Trustpilot.
- "My family’s claim took months to resolve and I could never reach the same person twice. Disappointing experience.", Robert M., February 2023, Trustpilot.
How to Contact TD
| Detail | Information |
|---|---|
| Address | Inquiries can be mailed to the head office at TD Insurance, P.O. Box 1, TD Centre, Toronto, ON M5K 1A2. |
| Phone | For life insurance claims, call 1-877-397-4187; for general inquiries, call 1-866-361-2311. |
| Direct email is not provided; customers must use the secure online web form on the TD website. | |
| Website | https://www.tdinsurance.com/products-services/life-insurance |
| Responsiveness / Hours | Phone support is available Monday to Friday from 8 a.m. to 8 p.m., and Saturday from 9 a.m. to 4 p.m. |
| Live chat | A live chat service is not available for life insurance inquiries. |
| Social media | The official handles are @TD_Insurance on Twitter and TD Insurance on Facebook. |
FAQ
Is the death benefit from TD life insurance taxable in Canada?
In Canada, the death benefit paid to a named beneficiary from a life insurance policy is typically not subject to income tax. This allows your beneficiaries to receive the full, tax-free amount you intended for them. However, if you have a permanent policy with a cash value and decide to surrender it, any growth on your investment that exceeds the premiums you paid may be considered taxable income.
How can I cancel or surrender my TD life insurance policy?
You can cancel your policy at any time, and TD provides a 30-day "free look" period where you can cancel for a full refund of any premiums paid. After this period, cancelling a term life policy will simply end your coverage with no refund. If you cancel a permanent life policy, you may receive a cash surrender value, but this amount could be reduced by applicable surrender charges, especially in the early years of the policy.
How long does it take to get a payout after filing a claim?
After submitting a claim, TD Insurance typically sends a written confirmation of its receipt within 10 business days. The actual time it takes to receive the final payout can vary depending on the complexity of the claim and how quickly all necessary documentation is provided. Generally, a straightforward claim can be processed and paid within several weeks.
Who can be named as a beneficiary on a TD life insurance policy?
You can name any individual, such as a spouse, child, or other relative, as your beneficiary to receive the death benefit. You also have the option to name an organization, like a charity, or designate your estate as the beneficiary. If no beneficiary is named, the proceeds will be paid to your estate and distributed according to your will.
Is a medical exam required to get life insurance with TD?
A medical exam is not always required to obtain life insurance with TD. Many applicants can get coverage by answering a detailed health questionnaire. For those between the ages of 50 and 75, TD offers a no-medical life insurance plan with limited coverage amounts. A full medical exam may be necessary for older applicants, those seeking higher coverage amounts, or individuals with certain health conditions.
What is the main difference between TD's term and permanent life insurance?
Term life insurance provides coverage for a specific period, such as 10 or 20 years, and is generally the more affordable option. It is designed to cover temporary needs, like a mortgage, and does not build cash value. Permanent life insurance offers lifelong coverage with premiums that typically remain level, and it can accumulate a cash value that you may be able to borrow against or withdraw.
Are there digital tools to help manage my TD life insurance policy?
Yes, TD Insurance offers an online customer portal where you can access your policy documents, review your coverage details, and get quotes for new products. This portal allows for convenient self-service management of your policy from your computer. However, there is no dedicated mobile application specifically for managing TD life insurance policies at this time.
What happens if I miss a premium payment?
If you miss a premium payment, your policy will typically enter a grace period, which is a short window of time during which your coverage remains active. You must pay the overdue premium within this period to prevent your policy from lapsing. If the grace period ends without payment, your policy will terminate, and you will no longer have life insurance coverage.
Is the death benefit from TD life insurance taxable in Canada?
In Canada, the death benefit paid to a named beneficiary from a life insurance policy is typically not subject to income tax. This allows your beneficiaries to receive the full, tax-free amount you intended for them. However, if you have a permanent policy with a cash value and decide to surrender it, any growth on your investment that exceeds the premiums you paid may be considered taxable income.
How can I cancel or surrender my TD life insurance policy?
You can cancel your policy at any time, and TD provides a 30-day "free look" period where you can cancel for a full refund of any premiums paid. After this period, cancelling a term life policy will simply end your coverage with no refund. If you cancel a permanent life policy, you may receive a cash surrender value, but this amount could be reduced by applicable surrender charges, especially in the early years of the policy.
How long does it take to get a payout after filing a claim?
After submitting a claim, TD Insurance typically sends a written confirmation of its receipt within 10 business days. The actual time it takes to receive the final payout can vary depending on the complexity of the claim and how quickly all necessary documentation is provided. Generally, a straightforward claim can be processed and paid within several weeks.
Who can be named as a beneficiary on a TD life insurance policy?
You can name any individual, such as a spouse, child, or other relative, as your beneficiary to receive the death benefit. You also have the option to name an organization, like a charity, or designate your estate as the beneficiary. If no beneficiary is named, the proceeds will be paid to your estate and distributed according to your will.
Is a medical exam required to get life insurance with TD?
A medical exam is not always required to obtain life insurance with TD. Many applicants can get coverage by answering a detailed health questionnaire. For those between the ages of 50 and 75, TD offers a no-medical life insurance plan with limited coverage amounts. A full medical exam may be necessary for older applicants, those seeking higher coverage amounts, or individuals with certain health conditions.
What is the main difference between TD's term and permanent life insurance?
Term life insurance provides coverage for a specific period, such as 10 or 20 years, and is generally the more affordable option. It is designed to cover temporary needs, like a mortgage, and does not build cash value. Permanent life insurance offers lifelong coverage with premiums that typically remain level, and it can accumulate a cash value that you may be able to borrow against or withdraw.
Are there digital tools to help manage my TD life insurance policy?
Yes, TD Insurance offers an online customer portal where you can access your policy documents, review your coverage details, and get quotes for new products. This portal allows for convenient self-service management of your policy from your computer. However, there is no dedicated mobile application specifically for managing TD life insurance policies at this time.
What happens if I miss a premium payment?
If you miss a premium payment, your policy will typically enter a grace period, which is a short window of time during which your coverage remains active. You must pay the overdue premium within this period to prevent your policy from lapsing. If the grace period ends without payment, your policy will terminate, and you will no longer have life insurance coverage.
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