5 questions about Desjardins Loan Insurance

Accidents and health issues can happen to anyone. Ever wondered how your family finances would be affected if you had an accident or were diagnosed with a serious illness that left you disabled? Desjardins Loan Insurance¹ could ease some of the pressure on your loved ones by taking 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.

Loan and life insurance are distinct 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’ll ever make. As with anything that’s important to you, it’s a good idea to protect that investment. Loan insurance covers your insured mortgage payments based on your selected level of coverage during your disability period, up to age 70. It provides some financial relief so you can focus on getting better. In the event of your death, it pays a benefit that fully or partially covers your mortgage balance.

Desjardins Loan Insurance goes hand in hand with individual life insurance to cover all your bases.

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 for care. 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.

Desjardins Loan Insurance covers some or all of your regular payments, depending on the insurance percentage you selected. You’re covered during your disability period, until the loan is fully repaid or until 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.

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. That way, 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 recover.

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 varies depending on your mortgage balance. 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.

Desjardins Loan Insurance is widely available. Most members and clients are approved on the spot,^† with no medical exam and regardless of their profession. Enrollment is quick and easy, and can be done at the same time you get your loan.

The key takeaway is that loan insurance 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.