Cost
When you take out Loan Insurance, you agree to an increased interest rate on your loan, or to pay the basic interest rate charged by your financial institution plus an additional interest rate for insurance.
The instalment premium is calculated based on the loan balance owing. Generally, the premium decreases as the loan balance decreases since it automatically reflects the principal payments made. As a result, you pay a fair premium for the real risk that your loan represents.
Calculate
The simulator calculates insurance coverage for a loan (under $100,000 only) as follows:
- Single borrower:
- Life insurance amount - 100% of loan
- Disability insurance amount - 100% of periodic loan payment
- Two borrower:
- Life insurance amount - 100% of loan
- Disability insurance amount – equal shares of 50% of periodic loan payment
Loan Insurance is underwritten by Desjardins Financial Security Life Assurance Company. Some restrictions apply to this product. Please see the Notice section.
