Desjardins Mortgage Insurance Review: Life, Disability & Cost
Quick answer: what does Desjardins Loan Insurance cover?
Desjardins Loan Insurance can cover a selected percentage of a mortgage balance on death, with optional disability protection for regular loan payments.[1] It is not the same as a personally owned life policy that pays a beneficiary you choose.[1][6]
The cost works differently from a fixed monthly creditor premium: Desjardins applies an additional interest rate to the loan.[1] Its current product page says, "As you pay off your loan, your insurance premium goes down".[1] The booklet also describes rate resets at renewal, so this is not a promise that your cost will decrease at every renewal.[7]
Compare your actual monthly premiums in the Desjardins calculator with your own life-only premium and an actual term-life quote. If you do not have both, use its quote-free help option rather than guessing a price. This independent guide is not a Desjardins quote, application or policy-service page.
Life coverage and disability coverage are different decisions
The current product page and linked Loan Insurance booklet describe these two coverage lines. Your signed application, approved percentages and contract determine your own protection.[1][7]
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| Coverage | What the current documents describe | What to compare |
|---|---|---|
| Life insurance | The loan balance at death multiplied by the selected life-insurance percentage, from 10% to 100%. The benefit is paid to the caisse to pay down the loan. The aggregate maximum is $10 million per insured person across the listed Desjardins loan and line-of-credit insurance products.[7] | A personal life policy with your chosen beneficiary, insured amount and term.[6] |
| Disability insurance | Regular loan payments multiplied by the approved disability percentage, subject to the regular-payment limit and an aggregate $10,000 a month per insured person across the listed products. Disability requires life coverage, and its percentage cannot exceed the life percentage.[7] | Workplace and standalone disability protection, including the definition of disability and waiting periods. |
Term life does not replace disability benefits. Do not compare a life-only quote with a combined life-and-disability charge as though they cover the same events. For a second overview, see the Desjardins bank-page checklist.
What to check in disability coverage
The booklet's disability definition depends on your work activity before disability.[7] For someone who worked at least 80 paid hours in the preceding four weeks, it initially refers to the main duties of the usual occupation, then to any paid work after 24 months of continuing disability.[7] Continuing medical care and other conditions also apply.[7]
Waiting periods can be 0, 30 or 90 days, depending on the cause and the booklet's criteria.[7] For the 90-day category, benefits are retroactively payable for days 31 to 90 once eligibility is established; the first 30 days are not paid.[7] A separate previous-illness-or-injury restriction can apply during the first two years of coverage or an increase, using a six-month lookback and the booklet's exceptions.[7]
Ask how these provisions interact with your workplace benefits before replacing anything. See our mortgage insurance vs disability insurance guide for the questions to separate.
How much does Desjardins mortgage insurance cost?
There is no single verified monthly price for everyone. Desjardins says cost depends on coverage, insured percentages, the people insured, their age, sex and smoking status, and the loan.[1] Its explanation also identifies remaining amortization as a factor.[2]
The booklet says the additional insurance interest rate is applied to the loan balance at each regular payment.[7] It also describes revisions at renewal and after certain loan or coverage changes; at renewal, current age matters.[7] It reserves the ability to change the underlying rate tables under the stated conditions.[7]
For a useful comparison, gather:
- The actual current life-only insurance cost and payment frequency, not just the total mortgage payment.
- A separate disability charge and selected percentage, if applicable.
- A personally owned term-life quote with the insured amount, term, payment frequency, exclusions and renewal terms shown.
- Any applicable tax and a written explanation of how the Desjardins insurance charge changes at renewal.
Compare current monthly amounts only when they use the same payment basis. A mortgage amortization is not evidence of a fixed insurance term or a lifetime savings figure. This guide does not supply a Desjardins price, a term-life rate or a savings guarantee.
Health review: application and claim assessment are separate
The linked booklet does not support a blanket claim that health review waits until a death claim.[7] Your application answers determine whether Desjardins can automatically approve the application or needs more information about your health and lifestyle to review it.[7]
Where more information is required, the booklet describes limited accident-only protection during the review, with loan-disbursement and other conditions.[7] It is not unconditional life and disability coverage while the decision is pending.[7] Incorrect or incomplete information can lead to cancellation or a denied claim; inaccurate age or smoking information can affect cost or the amount paid.[7]
Application review is one step; later claim assessment is separate and follows the contract. Ask what has been approved, when coverage starts, what restrictions apply and what evidence a claim requires. Neither a premium payment nor an application alone establishes that every future claim will be payable.[7]
Renewal, refinancing and switching lenders
Renewing an existing loan is not the same as replacing or paying it off. The booklet says coverage remains in force at renewal and adjusts to the balance, without new health questions, while the additional insurance interest rate is reset.[7] Coverage-ending age limits and other termination provisions still apply.[7]
If the insured loan is repaid in full, the booklet says life coverage ends even if another caisse loan replaces it.[7] For certain declined new applications, a conditional prior coverage recognition process may be available; this requires an application from the caisse and insurer confirmation.[7] Do not treat refinancing as automatic continuation.
There is also a conditional conversion option, not automatic portability to another lender.[7] Section 2.5 describes conversion to an individual life contract without a new health-and-lifestyle questionnaire only if all conditions are met.[7] These include at least one year of mortgage Loan Insurance, full repayment, the mortgage-security conditions, an insured balance of at least $25,000, being under 65 and applying within 31 days of repayment.[7] The amount is capped at $250,000.[7] Ask Desjardins to confirm eligibility and the individual policy offered before relying on this route.
Cancelling or replacing coverage safely
The booklet lists written cancellation options through your caisse, including signing its form or delivering the specified coverage-ending or rescission form.[7] Within 30 days of coverage starting, it describes a premium refund if no claim has been made.[7] After that, coverage ends on the date requested in writing and the booklet says there is no refund.[7]
If your household still needs protection, do not cancel first. Confirm replacement coverage is approved and in force, review any disability benefits that would be lost, then obtain written confirmation of the cancellation date and future insurance charges. Our cancellation checklist can help organize that sequence.
Frequently asked questions
Is Desjardins mortgage life insurance mandatory?
FCAC explains that optional mortgage insurance is not required for mortgage approval. Mortgage default insurance is a different product that protects the lender against default; it is not life or disability coverage.[6]
Does the premium stay fixed while coverage declines?
Not for the current Loan Insurance structure described here. Desjardins says premiums go down as the loan is repaid because the charge is based on an additional interest rate applied to the balance. Renewal and other resets can change that rate, so use your own current schedule rather than assuming a flat premium for the entire mortgage.[1][2][7]
Is this a review of Desjardins personal term life insurance?
No. This guide covers the mortgage-linked Loan Insurance product. Personal life insurance is a separate comparison in which you select the benefit and beneficiary; verify the actual individual policy rather than treating all Desjardins insurance as one product.[1][6]
Is Desjardins mortgage insurance worth keeping?
That depends on the actual price, approved coverage, disability terms, health circumstances and available alternatives. Use the contract checklist rather than an invented percentage-saving claim. Start with the actual-premium comparison, keeping disability separate.
Educational information, not personalized insurance advice. Sources checked October 18, 2026. The public product page's linked documents include province-specific materials; your own signed contract and approved coverage control.
Sources
[1] Desjardins: Loan Insurance life and disability coverage
[2] Desjardins: five questions about Loan Insurance
[6] FCAC: optional mortgage insurance products
[7] Desjardins: current product-linked Loan Insurance documents and booklet