What is TD Business Credit Protection?

Business Credit Living Benefit Insurance is optional creditor’s group insurance coverages offered exclusively to TD Bank business credit customers who are a sole proprietorship, partnership, non-public corporation or other entity operating a business or farm.

Eligible business credit products that can be insured include business loans (including business mortgages), TD business credit cards, lines of credit, and business overdraft protection.

You can apply for Business Credit Living Benefit Insurance if you are:

• A Canadian resident between the ages of 18 and 55 years; and any one of the following:
• The owner of an unincorporated business ,
• A personal guarantor of some or all of the debt included in the Total Authorized Business Credit¹,
• The spouse of the owner of the business (not applicable in Quebec),
• A director or an officer of the business (not applicable in Quebec), or
• An employee whose contributions are essential to the business and without whom the business would have difficulty operating (not applicable in Quebec).

Additional eligibility criteria includes:

• You must be Actively Working for wages or have an expectation of profit, or
• If you are a personal guarantor or spouse and you do not have an occupation or work for the business, you must be able to perform all six Activities of Daily Living¹.

For residents in Quebec, to be eligible to apply for this insurance, the proposed insured person must meet the following eligibility criteria:

• Have a financial interest in the company as either the owner of the business; or the personal guarantor of some or all of the business credit included in the Total Authorized Business Credit¹.

For all proposed insured persons, you must not have applied for or received disability payments, benefits, or disability pension from any source, in the 24 months prior to applying.

To learn more about eligibility for Business Credit Living Benefit Insurance, refer to the Certificate of Insurance & Important Documents.

Once the business credit is approved, Business Credit Life Insurance and/or Business Credit Living Benefit Insurance starts on the day you apply for coverage if you've met the eligibility requirements and:

• The coverage requested is less than $500,000; and
• You answer “No” to all the required health questions in the application.

If coverage requested is more than $500,000 or any answers to health questions in the application are a “Yes”, then you will need to complete a separate health questionnaire.

If further health information is needed, you will be contacted by phone to complete a health interview. Typically, the average wait time to be contacted is within 2–3 business days. A written decision regarding your coverage approval status will be mailed to you.

The coverages have certain limitations and exclusions. Here are some examples of when a Business Credit Life Insurance benefit will not be paid:

• Death or accidental dismemberment results from the insured person’s commission of a criminal offence, including driving while intoxicated.
• Death occurs during the first two years of your coverage, as the result of intentional self-inflicted injury, suicide, or attempted suicide (if this happens, we will refund all premiums you’ve paid).

Here are some examples of when a Business Credit Living Benefit Insurance benefit will not be paid:

• The insured person’s critical illness or total disability occurs due to a pre-existing condition.
• The insured person is diagnosed with or has investigations that lead to a diagnosis of cancer (life-threatening), in the first 90 days after coverage starts. (Coverage will end and premiums paid will be refunded).

For complete details of coverage limitations and exclusions, please refer to the Business Credit Life Insurance or Business Credit Living Benefit Insurance Certificate of Insurance & Important Documents.

Business Credit Life Insurance and/or Business Credit Living Benefit Insurance may end before your business credit is fully paid. Some examples of scenarios when coverage may end include:

• The insured person is no longer associated with the business, or no longer meets the ongoing eligibility requirements.
• We are notified that authorized business credit has been transferred to another bank or financial institution.
• The insured person dies.

We will refund any premiums we may owe you after your coverage ends. You can cancel at any time. If you cancel your coverage within the first 30 days, any premiums paid will be refunded and coverage will be considered never to have been in force. If a claim is made within the first 30 days, a refund is not provided.

For complete details on when coverage ends, please refer to the Business Credit Life Insurance or Business Credit Living Benefit Insurance Certificate of Insurance Certificate of Insurance & Important Documents.

The first step is to complete the application, which includes selecting your coverage and answering health-related questions.

Depending on the coverage amount requested and your response to health questions, you may also be required to complete a health interview.

You can apply in branch or speak with your Small Business Account Manager.

The premium rate used to calculate your insurance premium is based on your:

• Age at billing date
• Smoking status³
• Sex at birth

• The insured person’s premium rate
• The average daily business credit outstanding balance during the billing period, subject to the coverage maximum

Business Credit Living Benefit Insurance premiums, plus any applicable sales taxes, are calculated separately for each insured person under your Total Authorized Business Credit. Premium payments will be withdrawn automatically on the 15th calendar day of the month, or the next business day, from the account indicated on the application.

To learn more about how to calculate your premiums and to see the premium rate table with examples, refer to the  Business Credit Life Insurance Certificate of Insurance & Important Documents .