5 questions about Desjardins Loan Insurance
Accidents and health issues can happen to anyone. Ever wondered about what the financial impact would be on your family if you had an accident or were diagnosed with a serious illness? Desjardins Loan Insurance1 takes care of one of your biggest financial obligations—your mortgage.
Let's take a look at the 5 most frequently asked questions about loan insurance.
1. Do I need to insure my mortgage if I already have life
Loan and life insurance are different products designed to meet different needs. Loan insurance covers your mortgage in the event of disability or death. Individual life insurance pays out a benefit to your beneficiaries in the event of your death.
Buying a home is probably one of the biggest—if not the biggest—investments you will ever make. As with anything that's important to you, it's a good idea to protect that investment. Loan insurance covers insured mortgage payments for the duration of your disability period, giving you peace of mind so you can focus on getting better. In the event of your death, it fully or partially covers your mortgage payments, depending on your selected level of coverage.
Desjardins Loan Insurance goes hand in hand with individual life insurance to cover all your bases.
2. Isn't my disability insurance sufficient?
Disability insurance alone won't necessarily cover your mortgage payments. Your benefit may be less than your regular income. It's usually a percentage of your full salary, and it's often taxable. Plus, disability often involves extra expenses like treatments, medication and travel. It's reassuring to know your mortgage payments will be covered if anything happens. Loan insurance protects your savings and gives you peace of mind.
Loan insurance from Desjardins covers some or all of your regular payments, depending on the percentage you selected and no matter what type of financing you have. You're covered for the full duration of your disability period, up until the loan is fully repaid or you reach age 70. For salaried employees, it's a perfect complement to group insurance, which may not be sufficient to meet all their needs.
3. Do I really need loan insurance if I'm in good health?
Anyone can develop physical or mental health issues at any age. If an accident or illness prevented you from working, would you still be able to make your mortgage payments? Things like a cancer diagnosis or a leave of absence due to depression can turn your life upside down and cause financial strain.
With loan insurance, your regular payments are covered* in the event of disability. So you can maintain your standard of living and focus on getting better. Having this kind of protection is all the more important because you never know how long it will take to get back on your feet.
4. Can I afford loan insurance?
Desjardins Loan Insurance premiums are set based on sex, age and smoker/non-smoker status, along with your selected coverage options, loan amount and remaining amortization. The premium is an additional interest rate applied to your loan, which means that cost of the insurance decreases as the mortgage is paid off. You can also choose separate insurance percentages for life and disability coverage (from 10% to 100%). However, the percentage for disability insurance must be less than or equal to the percentage for life insurance. That means you can choose coverage that fits your needs and budget.
5. Am I eligible?
Desjardins Loan Insurance is very accessible. A full 70% of members are approved on the spot,† with no medical exam and regardless of their occupation. They enroll quickly and easily at the same time they get their financing.
The important thing to remember about loan insurance is that it can help you meet your financial obligations in the event of disability or death. It doesn't just protect your investment, but also you and your loved ones.
† According to Desjardins data, 2022.
* Based on the selected percentage between 10% and 100%.
1 For full terms and conditions, see the insurance policy in the Loan Insurance Summary.
Loan Insurance is a product of Desjardins Financial Security Life Assurance Company. Desjardins®, Desjardins InsuranceTM, all trademarks containing the word Desjardins, as well as related logos are trademarks of the Fédération des caisses Desjardins du Québec, used under licence.
Some conditions and restrictions apply.