User our online calculator to compare TD Bank's offer. Shopping for mortgage insurance has never been simpler!
The products that TD Bank offers to its clients deserve to be looked at. Several of their contract terms are worth your attention.
The first is of particular importance: You won’t know whether you qualify for their insurance until you may a claim. You may have signed some documents when you got your mortgage, but the reality is that the approval process is never complete until you actually make a claim, or unless you have been requested to give a supplementary report and you have provided it in time. Imagine, if you die, this could happen and you would not be around to defend the interests of your loved ones!
TD Bank does not offer disability insurance for your mortgage payments. Yet, the biggest cause of financial hardship in Canada is a lack of a property owner’s liquidity after a serious illness or injury. Canadian statistics show that one out of three people will become disabled for at least 90 days before reaching the age of 65.
Your eligibility is determined at the time that you make a claim. If you pay your premiums for five years, and suddenly an incident occurs, it is at that time that they will validate the policy and you will find out whether you are eligible for compensation. If you are not eligible, they will only refund the premiums and tell you that they are sorry, but you’re not covered. You will get nothing else.
You will read and reread the fine print of the documents that you signed at a time when you would probably want to think about something else. So, it’s better to be informed from the very beginning and make the right choices when you are getting ready to make a transaction as important as purchasing a house or condo.
To help you plan your purchase and all of the related fees, InfoPrimes offers a mortgage insurance calculator. You are able to compare InfoPrimes’ insurance rates with many other banks, including TD Bank.
|TD Bank||Infoprimes||Savings After 25 Years|
|Male, 45 years old, non-smoker
Mortgage life insurance for a loan of $ 150 000.
|Husband and Wife, 30 years old, non-smokers
Mortgage life and critical illness insurance. For a loan of $ 250 000.
|$ 88.02||$ 50.12||$ 11,367.00|
|Husband and Wife, 53 years old, non-smokers
Mortgage life and critical illness insurance for a loan of $ 50 000.
|$ 136.19||$ 95.97||$ 12,066.00|
No. According to Article 439 of the Act respecting the distribution of financial products and services :
“A distributor may not require the entering into of a subordinate contractual obligation for the customer to enter into a contract of insurance with the specified insurer. He may not exercise undue pressure on the client or use fraudulent tactics to induce him to purchase a financial product or service.”
Note that, under certain circumstances, financial institutions may ask you to obtain mortgage life insurance before they approve a loan. However, they cannot force you to obtain that insurance from their financial institution. See Article 22.
If your loan is for commercial or rental property and you have written confirmation which confirms that this life insurance (not applicable to disability) is required for acceptance of the loan, your premiums will be tax deductible under certain conditions. See Article 20-1 E.2.
Before you sign up for insurance with TD Bank, seriously consider all of the options available to you. In the second table, you will be able to see that mortgage disability insurance products are not available, which limits coverage in the event of a serious event which prevents you from working during a certain period.
|Who owns the contract ?||The Bank||The owner of your choice.|
|What type of insurance is available ?||Group||Individual|
|Will I receive a contract ?||No (You will only receive proof of a contract)||Yes|
|Preexisting conditions (Conditions for which you have consulted with or been treated by a doctor)||Usually, the risk selection is made at the time of the claim, which can result in the invalidation of your insurance.||The risk selection is made at the start of the contract. No exceptions to coverage..|
|Eligibility||You are eligible if you have an individual loan from TD Bank.||Any loan from a financial institution or recognized organization providing for a minimum payment over a fixed period of time. *Even if they are different and there is more than one.|
|Can I change my mortgage lender and keep my insurance ?||No||Yes|
|Who receives the benefit ?||The Bank||The beneficiary of your choice (spouse, children, etc.)|
|How much is insured ?||The total amount owede||Your Choice|
|Are premiums guaranteed ?||The insurer reserves the right to change the premiums at any time.||Yes|
|Is there a tax payable on the premium ?||A provincial tax is applied in Quebec (9%) and Ontario (8%). There are no taxes in any other provinces.||No. This is an insurance premium of individual persons, so the tax doesn’t apply.|
|Can term insurance be converted to permanent insurance ?||No||Yes|
|Do I pay my premiums with my mortgage payment ?||Yes||It’s up to you|
|If I don’t pay a mortgage rider, does this end my insurance ?||Yes||No, because your insurance and your mortgage are not linked together|
|Can people who aren’t on the mortgage be insured ?||No||Yes|
|Is the pricing based on tobacco usage?||No. Mixed Rate||Yes|
|What is the maximum age at which insurance can be purchased ?||65, depending on your health.||85, depending on your health.|
|At what age does the insurance end ?||70 years||Your choice|
|What is the maximum amount of life insurance ?||$ 500 000||Unlimited|
|What happens in the case of multiple insured parties who die simultaneously ?||The balance of the loan will be paid off.||You receive the total amount that you chose at the beginning (eg, $ 200 000 per person).|
|Can I get disability insurance without buying life insurance ?||No||Yes|
|What is the maximum age at which insurance can be purchased?||Not available.||59 years|
|What is the maximum amount of disability insurance ?||Not available.||$ 5 000 / month|
|Class of Occupation||Not available.||Depending on your occupation, generally better.|
|Can I choose the percentage of the payment that is protected ?||Not available.e||You get to choose, and can even add other loans.|
|How long do I have to be disabled in order to make a claim?||Not available.||You choose between 30, 60, and 90 days.|
|What is the maximum disability time permissible ?||Not available.||You choose: 24 months, 60 months, or until you reach age 65.|
|Own-occupation (which prevents the insured from engaging in all remunerative work))||Not available.||Depending on your occupation, it may vary between 24 months, 60 months, or until you reach age 65.|
|What happens in the case of two insured persons simultaneously becoming disabled ?||Not available.||You choose|
|What is the maximum age at which insurance can be purchased ?||65 ans||64 years|
|Can I get critical illness insurance without purchasing life insurance?||No||Yes|
|What is the maximum amount of insurance ?||$ 300 000||You choose|
|What diseases are covered?||Cancer, acute heart attacks, and strokes.||You choose between 24 diseases.|
Individual mortgage insurance, like all contracts offered by InfoPrimes, offers many advantages when compared with the group insurance products offered by most financial institutions. Not only will you have better protection, but the price of our insurance is often cheaper!
If you want to change your insurance to InfoPrimes, rest assured that you can cancel your mortgage insurance with TD Bank at any time without being penalized.
WARNING: It is important that you keep your current insurance in effect until your new policy is accepted, issued, and in force.
To better assist you in your efforts, InfoPrimes offers a mortgage insurance calculator. You'll be much better equipped to get an accurate picture of the amount that you will spend on protecting your mortgage, while including protection specific to your financial and family situation. This table allows you to compare premiums for various banks including TD, and contrast them with InfoPrimes.