Desjardins mortgage insurance review
Desjardins Mortgage Insurance: What to Check Before You Rely on It
Desjardins Loan Insurance can protect a mortgage through life and disability coverage, but the useful comparison is structure first: insured percentage, certificate wording, payout limits, and whether your household controls the benefit.
Quick answer: separate loan protection from family-owned insurance
Desjardins says Loan Insurance covers your mortgage in case of death or disability based on the insurance percentages you selected. It also says life coverage can cover the loan balance after death, while disability coverage can cover regular payments while you meet the policy definition.
FCAC says optional mortgage insurance is separate from mortgage approval. FCAC also explains that mortgage life insurance can differ from term life because the lender may receive the death benefit and the benefit can decrease as the mortgage is paid down.
Use your actual Desjardins certificate or quote, then compare it against personally owned coverage. This page is educational and not personalized insurance advice.
Coverage lines
What Desjardins lists, and what to compare it against
A mortgage loan-insurance offer can mix death protection and disability payment protection. Review each line separately before you decide.
| Coverage line | Desjardins wording to verify | Published maximum | Clean comparison |
|---|---|---|---|
| Life insurance | Desjardins says life insurance covers the balance of your loan after death, based on the selected percentage between 10% and 100%. | Maximum payable: $10 million. | A personally owned term life policy with your chosen beneficiary and level death benefit. |
| Disability insurance | Desjardins says disability insurance can cover regular payments until the loan is paid off or until age 70, based on the selected percentage. | Maximum payable: $10,000 per month per insured person. | Workplace disability benefits, standalone disability insurance, and emergency cash reserves. |
Cost structure
The premium is not just a monthly line item
Desjardins says the premium is calculated as an additional interest rate applied to the loan, and varies with selected coverages, insurance percentages, people insured, age, sex, smoking status, loan amount, and remaining amortization.
Three numbers to ask for
- 1. Added payment today: the insurance amount included in your current mortgage payment.
- 2. Insured balance or payment: the amount actually protected after the selected percentage is applied.
- 3. Total term cost: the cumulative premium over the period you expect to keep the mortgage.
Before you accept
Six questions for the Desjardins appointment
If any answer is unclear, ask for the insurance booklet or summary before relying on the coverage.
- 1Which percentage did you choose for life coverage and disability coverage?
- 2Does your premium change as the mortgage balance changes, and how is the additional interest-rate cost shown?
- 3What exact mortgage balance or payment amount is insured today?
- 4What happens if you refinance, sell, transfer, or pay out the Desjardins mortgage?
- 5Which exclusions, waiting periods, health questions, and evidence requirements appear in the booklet?
- 6Would a personal term life or disability policy give your household more flexible money?
Sources checked
- Desjardins Loan Insurance for life and disability coverage, eligibility, selected percentages, maximums, and cost factors.
- Desjardins questions about Loan Insurance for the mortgage-specific explanation of selected percentages and additional-interest-rate premium structure.
- Desjardins mortgage FAQ for the statement that mortgage loan insurance can help make payments after disability or cover the unpaid balance after death.
- FCAC optional mortgage insurance products for optional-status, lender-beneficiary, declining-benefit, and shop-around guidance.
Compare first, apply second, cancel last
If Desjardins coverage is your only protection today, keep it active until any replacement policy is approved, accepted, and in force.
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