|
|
 |
|
|
Who can be insured under TD Universal
Life?
TD Universal Life can insure anyone between the ages of 15 days
and 85 years of age. Once we receive your application, an underwriter
will determine what additional information or medical tests may be
required. Insurability will be established based on all the information
provided.
Can both my spouse and I be covered by the same policy?
Yes, both of you may be covered by the same policy. Incidentally, TD
Universal Life offers a number of joint policy benefits. You can have
your death benefit payable after the first death to provide an income for
the surviving spouse, or, after the second death to maximize the value of
your family's inheritance. Ask a TD Insurance Specialist about the
various joint policy benefits to choose the one that is right for
you.
What is the death benefit?
TD Universal Life offers a variety of death benefit choices. With
a level death benefit the payout remains the same for your lifetime. An
increasing death benefit gives your beneficiary the initial insured
amount of your policy plus the account value of your investments at
death. With an optimizing death benefit, the payout on death is
determined by the minimum amount of coverage needed to maintain the
tax-exempt status of your policy. There are also a variety of coverage
options available to enhance your death benefit choice – return of
premium, indexed or adjusted cost basis. A TD Insurance Specialist will
be happy to explain each of these death benefit and coverage options and
to help you choose the one that is right for you.
What will my premium payments be?
You have flexibility on how much you deposit to your policy within the
minimum and maximum allowable for your age. The minimum premium is based
on your age, gender, and smoking and health status when the policy is
issued. The maximum premium is set to keep your policy exempt from
accrual taxation. You choose your Planned Premium, which will probably be
somewhere between the minimum and maximum and can be changed should your
circumstances change.
How long will I have to pay premiums?
You can make premium payments for your life or you can choose to make
premium payments for a specified number of years. If you choose a limited
pay policy, the amount of each premium and the interest rate credited to
your policy will determine when you no longer have to make premium
payments. If interest rates are higher than you predicted or you increase
your Planned Premium, you may not need to make as many premium payments.
If interest rates are lower than you predicted or you decrease your
Planned Premium, you may have to make premium payments for longer than
expected.
What happens if I miss a premium payment?
Sometimes other financial commitments make it necessary to skip premium
payments for awhile. With TD Universal Life, after the policy has
been in force for one full year, you can take a premium holiday provided
your account value can maintain your minimum required premium payments.
The Insurance and Administration Charges as well as the cost of any
additional benefits and riders would continue to be deducted from your
account value.
What happens with my premium payments?
TD Universal Life provides guaranteed insurance protection with
tax-deferred investment growth. Your premium, less premium tax, will be
deposited into the investment options of your choice. There are no other
charges applied to your premium before it is invested. The Insurance
Charge and the cost of
any additional benefits or riders will be deducted from your account
value each month.
Can I make additional payments?
Yes, you may make lump-sum payments to your policy. However, any premium
payments in excess of the amount allowed to maintain the tax-exempt
status of your policy will be deposited into a Surplus Account. Any
investment earnings in this account are fully taxable both during your
lifetime and at your death.
What happens if I stop making premium payments?
We will take the Insurance and Administration Charges and the cost of any
additional benefits and riders to maintain your insurance coverage out of
the accumulated cash value in your policy. Your insurance coverage will
continue until all your cash value is exhausted.
How is my Insurance Charge determined?
The Insurance Charge is the cost of the insurance coverage, which is
guaranteed at issue and is based on your age, gender and, smoking and
health status. There are three insurance scale factors available: The
T100 Scale in which the Insurance Charge remains the same for the rest of
your life; the Yearly Renewable Term (YRT) Scale in which the Insurance
Charge rises as you get older; the YRT with Switch to T100 Scale in which
the Insurance Charge rises each year until the year you specified at
issue (at which time the Insurance Charge is switched to the T100 factor
for your age at the time of the switch and then remains the same for the
rest of your life). A TD Insurance Specialist will be happy to explain
these various insurance factor scales and to help you choose the one that
is right for you.
How will I know how my investments are doing?
As a TD Universal Life policyowner, you will receive calendar
quarterly statements detailing the status of your policy including
current account values.
How is interest credited to my account?
Interest will be credited to your account on a monthly basis and will
vary by investment option selected.
Can I withdraw money from my policy?
Funds withdrawn from your account balance may be
subject to a market value adjustment and will be subject to tax in the
year withdrawn.
What happens if I cancel my policy?
You may cancel your policy at any time. Your account value
may also be subject to a market value adjustment. There may also be
taxable consequences to cancelling your policy.
Can the insurance company cancel my policy?
Once it is issued, your policy is guaranteed non-cancellable, provided
you maintain sufficient deposits in your policy to cover the Insurance
and Administration Charges and the cost of any additional benefits and
riders.
What other benefits are available?
TD Universal Life offers a variety of riders and benefits that can
be added to meet your needs.
A Waiver of Premium benefit can be added to your policy. You
choose the premium amount that you wish to cover by this benefit. If you
are the insured, Waiver of Total Disability of the Insured is designed to
waive premiums in the event you become disabled and are unable to work.
If you are the owner of a policy on the life of your child, you can
choose between three benefits – Waiver on Total Disability of
Payor, Waiver on Death of Payor or Waiver on Total Disability and Death
of Payor. These benefits are designed to waive premiums in the event you
become disabled or die.
An Accidental Death Benefit Rider may be added to your policy. If
you die accidentally, this benefit will pay a specified amount in
addition to the death benefit.
Also included in your policy is a Disability Benefit Payout that
provides benefit payments up to the surrender value of your policy with
no tax penalty in the event you are diagnosed with a severe mental or
physical impairment.
A TD Insurance Specialist will be happy to explain these riders and
benefits and to help you choose the ones that are right for you.
Are there any exclusions or limitations?
The only limitation is for suicide committed before your policy has been
in force for two full years. In such case, the insurer's only liability
is the repayment of the premiums paid from the later of the effective
date of your policy or the date of the latest reinstatement less any
Disability Benefit Payouts, withdrawals or outstanding policy loans.
There are no other exclusions or limitations on the death benefit
providing all information given is true and complete. The death benefit
is payable regardless of the cause of death and without consideration to
any other policies held. Refer to the policy for exclusions and
limitations to the Disability Benefit Payout, Waiver of Premium and
Accidental Death Benefits.
Are there special premiums for non-smokers?
You may switch
from Smoker to Non-Smoker rates any time after your policy has been
issued with proof and evidence of insurability.
Is TD Universal Life underwritten by TD Life?
No, TD Life is the exclusive distributor of TD Universal Life. It
is underwritten and issued by National Life Assurance Company of Canada
(National Life). Founded in 1899, National Life's success is based on a
long history of stability and profitability. Currently, the company
manages $3 billion in assets. National Life is a member of the
Industrial-Alliance Group, one of the largest life and health insurance
financial groups in Canada with more than $11 billion in assets under
management.
Is TD Universal Life covered by any consumer protection plan?
National Life, the underwriter, is a member of The Canadian Life and
Health Insurance Compensation Corporation (CompCorp). CompCorp
administers the Consumer Protection Plan which was instituted to provide
protection to the policy owners of member companies. TD Universal
Life is covered by the Consumer Protection Plan. You should read the
CompCorp brochure to understand the limitations of coverage.
|
|
|
|
