Monthly amount
In any policy with Desjardins, the monthly amount* selected by the policyowner to meet financial obligations cannot exceed the maximum amount set by the occupation class:
See the Financial underwriting requirements (secure site) to learn more on our requirements based on the insurance amount applied for.
When a claim is submitted, the eligible monthly amount is established at the onset of disability. First, we determine the eligible loan or lease with the longest remaining amortization period. We then select the other eligible monthly amounts in descending order.
The eligible monthly amount calculated at the onset of disability does not change thereafter even if the scheduled payment varies or the remaining amortization period of an eligible loan changes. Eligible amounts not taken into account at the onset of disability cannot be taken into account once benefit payments begin.
This amount is neither integrated nor coordinated with other sources of disability income, except for insurance covering the same loans or leases.
*To qualify, a loan or lease cannot already be partially or fully covered by another loan, debt or credit insurance.
For an individual
The monthly amount is the lesser of these 2:
- Monthly amount selected
- Total of the eligible loan payments
If this total is lower than the monthly amount selected, the insurance amount payable will be limited to the total of eligible monthly amounts. Since the excess premiums paid are not reimbursable, it is in the policyowner’s interest to periodically review their monthly amount based on their loan and lease payments.
For a business
The monthly amount is the lesser of these 2:
- Monthly amount selected
- The total amount of eligible monthly payments, prorated to the insured person's percentage of common shares held in the company on that same date
If this total is lower than the monthly amount selected, the insurance amount payable will be limited to the total of eligible monthly amounts. Since the excess premiums paid are not reimbursable, it is in the insured person's interest to periodically review their monthly amount based on their loan and lease payments.
Eligible loans and leases
Only loans with a balance of $1,000 or more, offered by a financial institution authorized to do business in Canada, are eligible. Lease agreements for dwellings and motor vehicles are also eligible.
In the case of a loan taken out by a couple with a solidary obligation, the amount of the loan is eligible for 100% per insured person, up to the monthly amount selected in their respective policies. The total amount of the loan can only be claimed once, even if both insured persons are disabled at the same time.
For a self-employed individual (registered business), no distinction will be made between personal and business debt. The eligible amount is the total of these debts.
Business owners who want personal and business coverage must purchase 2 separate policies. SOLO Loan Insurance can cover an individual or a business, but not both simultaneously.
