Loan Insurance

Loan insurance

Flexible coverage for your loan

In case of death or disability, your loan will be repaid. That’s peace of mind for you and your family.

Find the phone number for your caisse

Why take out loan insurance?

Anytime you borrow money, you’re responsible for paying it back, no matter what happens. The same applies to your mortgage.

In case of death We’ll pay off the balance of your loan, which will minimize the financial impact of your death.

In case of disability

We’ll cover your payments until the end of your disability period so you can focus on getting better.

Our loan insurance coverage comes with psychological, legal and autonomy assistance for the support and advice you need.


L’assurance prêt comment ça marche podcast

En 5 minutes

Taking out loan insurance can help provide a safety net against the unexpected and mitigate associated risks. Journalist Elise Jetté gives us a 5-minute overview in French of the many advantages to getting coverage.

Listen to the podcast about loan insurance on the Omny Studio platform (in French only) - External link.

What’s the difference between life insurance and loan insurance?

Good question!

  • Individual life insurance is used to leave money to your loved ones when you die.
  • Loan insurance is used to pay off your loan if you die before you’ve paid it off yourself.

How does it work?

We offer two types of coverage:

  • Life insurance, which will pay off the balance of your loan
  • Disability insurance, which will make the payments on your loan

With loan insurance on a Versatile Line of Credit tied to your mortgage:

  • Premiums are calculated only on the amount of credit you use.
  • Future borrowings against the line of credit are covered right away.

Life insurance:

  • Will pay off the balance of your loan multiplied by the life insurance percentage you’ve selected (between 10% and 100%)
  • Up to $10 million

Disability insurance

  • Will cover your regular loan payments based on the percentage you’ve selected for your entire disability period or until you turn 70
  • In case of disability due to cancer, payments will be made from the first day of disability
  • You can insure between 10% and 100% of your loan as long as the percentage is equal to or less than your life insurance percentage
  • Will pay the insured portion of your instalment payments, up to $10, 000 per month, per person

Benefits paid

  • Amounts paid are non-taxable and are not affected by benefits paid by other private or public plans

3 services included

  • Psychological Assistance: a confidential phone service that includes a set number of consultations with psychological health specialists to help you through difficult times.
  • Legal Assistance: information about your rights, obligations and possible solutions to help you resolve legal problems.
  • Autonomy Assistance: a phone service for people who are experiencing a loss of independence and for their caregivers. You can get recommendations and help with coordinating housekeeping and daily living services that can complement those offered by the government.

To take out loan insurance, you must:

  • live in Canada
  • be the borrower or the borrower’s guarantor
  • be 69 or under (for the life insurance coverage)
  • be 64 or under and have the life insurance coverage (for the disability insurance coverage)

Premiums are charged as an additional interest rate applied to the balance of your loan. This rate varies based on:

  • the type(s) of coverage you choose
  • the insurance percentage(s) you choose
  • the number of people being insured, their age, their sex and whether or not they smoke
  • the amount of the loan

You’ll get a discount on your life insurance if you get disability insurance as well.

We offer a special rate for non-smokers.

Your premium decreases as you pay off your loan, so you’re always paying a fair price for your insurance.

For loan insurance on a Versatile Line of Credit, the premium:

  • is calculated on a 10-year amortization period
  • is included in your instalment payments
  • varies based on the authorized limit for the Versatile Line of Credit

For a full list of conditions, consult the insurance policy available at your caisse. You can also refer to the following documents:

Legal notice

The information on this site is intended to help you understand the product by providing a simple, clear summary of the nature and conditions of the insurance. Only the policy and the insurance application will be used to settle legal disputes. Refer to the insurance policy for a full list of terms and conditions.

Client services


Online: File a claim External link.

By phone: 1-877-338-8928 This link will launch your default phone software.

At a caisse: Make an appointment with an advisor

Assistance services

For psychological, legal or convalescence assistance, call 1-877-477-3033 This link will launch your default phone software.

  1. Offered by Desjardins Financial Security Life Assurance Company.