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Little ones, big bills: The $200,000 conversation parents need to have:
TD Insurance Parents and Finances survey reveals majority of Canadian parents do not have enough life insurance to cover the costs of raising their children

TORONTO, ON, January 25, 2010 – Car seats. Childproof locks. Sunblock. You would do anything to protect your children. But what happens if you are not around to take care of them? The TD Insurance Parents and Finances survey shows that while 42% of Canadian parents believe it will cost more than $200,000 to raise a child to the age of 18, the majority of parents with life insurance do not believe they have enough insurance to cover these costs.

“The poll findings show that most parents are underinsured,” says Dave Minor, Vice President, TD Insurance. “One of our goals is to help Canadians think about what it takes to maintain their family’s lifestyle in the event the unexpected happens.”

Many Canadian parents face an even greater issue than being underinsured - they have no insurance at all. The survey found that 21% of Canadian parents do not have life insurance.

“Life insurance is a hard topic for parents to talk about; no one wants to think about not being around to raise their kids,” says Minor. “Just like everything else we do to protect our children, we need to consider the worst case scenario and plan for it.”

How expensive is it to raise Canada’s kids?
Raising children is an expensive undertaking, according to parents of kids under 18. Forty-two percent say that raising a child to the age of 18 in Canada will cost them more than $200,000, 31% believe that cost is between $100,000 and $200,000 and 27% say it is less than $100,000.

When asked about the costs to attend a Canadian university, including living expenses, the majority of parents estimate that in 15 years it will cost between $25,000 and $50,000 a year to send a child away to school.

Are parents saving enough?
If raising one child costs more than $200,000 and parents do not have life insurance, are they putting money away for their children’s future? The majority of parents don’t think so. A worrying 8 out of 10 parents say they are not saving enough: 8% say they spend more money each month than they earn; 30% are living paycheque to paycheque with nothing left to save; and 41% say they are saving a little, but not enough. Only 13% are saving about 10% of their earnings each month and just 9% say they save more than 10%.

“There is no question that saving money is tough. It can be hard to carve out funds to put aside for the future,” says Minor. “Unfortunately, the reality is that we all have limits. The good news is that there are plenty of options out there that suit any budget. An insurance expert can work with you to protect your family and your finances.”

How many parents have life insurance?
Seventy-nine per cent of parents surveyed say they have life insurance, either through their workplace benefits program or through purchasing a life insurance policy. Fifty-five percent of those with life insurance do not believe the policy will leave enough money to support their children to the age of 18.

“It’s also important to consider life insurance for stay-at-home parents, not just those in the workforce,” says Minor. “If something happens to the stay-at-home parent, the cost of child care can have a big impact on maintaining a family’s lifestyle.”

Of the 21% of parents who do not have any life insurance, 56% say they feel like they probably should have it, 36% say they cannot afford it and 9% say they do not believe it is necessary.

The Life Insurance Calculator at can help you determine how much coverage you need. To speak to an expert call 1.877.397.4187.

About the TD Insurance Parents and Finances survey
From December 10-17, 2009, Vision Critical - Angus Reid Public Opinion conducted the TD Insurance Parents and Finances survey among 1,006 Canadian parents between the ages of 25 and 45 with children under 18. The margin of error is 3.1 per cent. The results of the online survey have been statistically weighted according to the most current education, gender and region census data to ensure a representative sample. Discrepancies in or between totals are due to rounding.

About TD Insurance
The TD Insurance brand is a part of TD. The wide range of TD Insurance products help protect clients from the 'accidents of life' including credit protection, life, health, travel, home and auto insurance. With more than three million clients, TD Insurance authorized products and services are available through a network of more than 1,000 TD Canada Trust branches, the Internet and telephone. The TD Insurance brand, through its TD Insurance Credit Protection and TD Insurance Life and Health brands, is the number one provider of critical illness insurance and direct life and health premium origination in Canada. And through its TD Insurance Meloche Monnex and TD Insurance Home and Auto brands, is the largest direct-response insurance group in the country. For more information, visit


For further information, contact:

Jacqueline Burns
TD Bank Financial Group
(416) 308-0177

Karen McCullough / Anne Locke
Paradigm Public Relations
(416) 203-2223 /