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Did you know that almost half of bankruptcies and mortgage foreclosures are caused by disability? The stat underscores the importance of guarding your income from an interruption caused by an illness or injury.
With long-term disability insurance, the insurance company pays you a monthly benefit if an injury or illness prevents you from working, lessening the financial impact of a disability.
Among the insurance companies in Canada offering disability insurance is Desjardins Life Insurance. Should you buy a disability policy from it? Read on for our review of its products.
About Desjardins Insurance
Founded in 1900 by Alphonse and Dorimène Desjardins, the Desjardins Group is a leading financial cooperative in Canada, with over 7.5 million members and clients and 50,000 employees.
The Desjardins Group provides a wide range of financial services, including banking, credit cards, investments, group insurance, group retirement, and a full-service brokerage.
As the insurance arm of Desjardins Group, Desjardins Insurance offers a comprehensive suite of products, including life insurance, critical illness insurance, disability and accident insurance, extended health insurance, loan and credit insurance, travel insurance, and home and auto insurance.
Key facts about Desjardins Insurance
AM Best Rating: Not rated
Head office: 200 rue des Commandeurs, Lévis, QC, G6V 6R2
Website: https://www.desjardins.com/
Contact phone number: 1-877-828-7800
What Disability Insurance Plans Does Desjardins Insurance Offer?
Desjardins Insurance offers three types of disability insurance plans suitable for self-employed individuals, business owners, and employees without group insurance or insufficient coverage.
SOLO Disability income
The SOLO Disability income plan is designed to replace your income if you become disabled due to an injury or illness. It pays a monthly benefit of up to $10,000 after a waiting period of between 30 and 730 days for two years, five years, or to age 65.
Rider coverage options include the cost of living benefit, which increases your monthly benefit by inflation every year you’re on a claim. You can also get the future insurability option, which lets you buy additional coverage without medical underwriting.
- Pros:
- Compared to other insurers, it has less stringent requirements to upgrade your occupation class to a higher one to lower your premiums.
- If you later get disability coverage through an employer, you can switch your disability insurance plan to a SOLO Loan insurance policy to cover your loans without evidence of good health.
- If you are in the early stages of your career, you can get the term-10 premium structure. Although rates increase every 10 years, it has a lower initial cost than the level premium option.
- Cons:
- Guaranteed premiums are unavailable, so Desjardins Insurance can increase the cost upon renewal.
- The maximum monthly benefit of $10,000 may not be enough for high-income earners.
- Full medical underwriting may prolong the process and result in unfavourable outcomes like exclusions and declines, especially if you have underlying health conditions.
SOLO Essential disability income
This disability insurance plan provides more flexible and affordable coverage. It’s best suited for individuals who don’t qualify for a traditional product due to their health or occupation, home-based workers, self-employed individuals, or contract workers.
- Pros:
- Flexible coverage options let you choose between accident or illness protection or both.
- Coverage is available for people with pre-existing health conditions who may have a more challenging time qualifying for disability benefits.
- Accident-only coverage also protects you from soft tissue injuries.
- Cons:
- It has many exclusions, including anxiety, chronic fatigue syndrome, depression, stress or burnout, and any other psychiatric, psychological, or nervous disorders.
- If you claim disability benefits resulting from degenerative disc disease or soft tissue injuries, your benefit period may be limited to 20 days.
- Does not have an occupation class upgrade like other disability insurance products.
SOLO Loan insurance
Instead of income replacement, this insurance policy pays a monthly benefit to cover expenses related to loans, including mortgages and lines of credit, car loans, credit cards, RRSP loans, student loans, and business loans. It even covers rent for your principal residence.
- Pros:
- Get up to $5,000 in monthly benefits to cover your loans.
- By buying disability insurance independent of your creditors, coverage remains in force even if you change financial institutions (e.g. change lenders for your mortgage).
- No need to satisfy the waiting period if you are hospitalized.
- Cons:
- As a loan protection insurance policy, it does not cover expenses like groceries, utilities, property tax, etc. Only an income replacement policy like SOLO Disability income can do so.
- Financial evidence like a tax return is needed to qualify for amounts of $3,001/month and over.
- If you're unemployed for less than 12 months at the time of claim, you will not be covered for mental health issues like stress, anxiety, depression, neurosis, psychosis, and more.
Disability insurance products for businesses
Business loan protection: Companies can also use the SOLO Loan insurance policy to protect from a default from their business loans.
Wage-loss replacement plan: Protect your employees from disability with a wage-loss replacement plan, which acts like group insurance, but with better coverage.
Here is a table comparing the products side by side:
SOLO Disability Income | SOLO Loan Insurance | SOLO Essential Disability Income | |
|---|---|---|---|
Target market | Self-employed, independent workers, business owners, employees without group coverage | Individuals who have a mortgage or personal loans, business owners with business loans | Individuals in high-risk occupations, with lower-income, have pre-existing medical conditions |
Covers | Injury or illness | Injury only with illness add-on | |
Definition of disability | Regular occupation for two years (can be extended to the entire benefit period) | Regular occupation for three years (can be extended to the entire benefit period) | |
Age eligibility | 18-60 | 18-69 | |
Occupation classes | 4A, 3A, 2A, A, B | 1, 2, 3, 4, 5, 5B | |
Occupation class upgrades | Yes | No | |
Waiting periods | 30, 60, 90, 120, 365, or 730 days | 30, 60, 90, or 120 days | 0, 30, or 120 days |
Benefit periods | Two, five years, to age 65 | Five years, to age 70 | |
Minimum coverage | $400 | $500 | |
Maximum coverage | $10,000 | $5,000 | $6,000 |
Medical exam required | Yes, above a certain age and amount | No | |
Premium guarantee | Not guaranteed | ||
Expiry | Age 70 | Age 75 | |
Riders | Residual and partial disability, future insurability, cost-of-living, return of premiums | Partial disability, future insurability | Accidental death and dismemberment, accidental fracture |
How Much Does Desjardins Disability Insurance Cost?
Because disability insurance premiums vary dramatically based on your age, gender, smoking status, occupation class, and plan design, it’s difficult to compare different insurance policies. Therefore, we will show the cost of the most popular product which offers the best benefits: the SOLO Disability income plan.
Here is a table showing the monthly premiums for the SOLO Disability income plan. The insured in the example is in the highest occupation class 4A with a 90-day waiting period and age 65 benefit period.
Age | Male | Female |
|---|---|---|
25 | $66 | $89 |
30 | $75 | $98 |
35 | $100 | $130 |
40 | $150 | $167 |
45 | $201 | $224 |
50 | $271 | $320 |
55 | $321 | $379 |
Verdict: Our Desjardins Disability Insurance Review
Should you buy disability insurance from Desjardins Insurance? Due to a combination of its product features and relatively low cost compared to its competitors, we don’t think you can go wrong with a Desjardins disability insurance policy.
Here are what we like and dislike about disability insurance from Desjardins Insurance.
- Pros:
- Desjardins Insurance is one of the few insurance companies offering disability insurance for loans to cover your mortgage, car loans, and other debts.
- Desjardins offers complimentary assistance services like 24/7 phone assistance to get answers from a nurse about any health-related matter. You can also get a second medical opinion which gives you access to world-renowned specialists who will help you make an informed decision about your health.
- Affordable disability benefits with a wide range of coverage options like waiting periods, benefit periods, and riders.
- Lower premiums than other insurance companies, especially for women.
- Easily convert between SOLO Disability income and SOLO Loan insurance without medical evidence of insurability.
- Cons:
- It does not offer a non-cancellable disability insurance product with guaranteed premiums that do not change.
- All disability insurance products that Desjardins Insurance offers are through an insurance agent, so you can't buy directly from the insurer.
- A maximum monthly benefit of $10,000 may not be sufficient for high-income earners.
How Do You Sign Up For Desjardins Disability Insurance?
Are the disability insurance policies from Desjardins Life Insurance a fit for you? If so, you may be wondering how you can buy it. Fortunately, Desjardins Insurance makes it easy for you to apply.
The first step is to complete an electronic application with an insurance advisor. On the application, you will have to provide personal information like name, date of birth, and address. You may also need to show your income for the past two years.
Next, you will go through underwriting to determine your eligibility for coverage. As part of the process, you will have to answer a health questionnaire over the phone. You may also be asked to undergo a medical exam which involves a blood draw and urine collection.
After Desjardins Insurance receives the information, it will assess your situation to decide if you are a good fit for disability insurance. If so, it will offer coverage to you after you pay the premiums. The entire process, from beginning to end, may take a few weeks, so you should be prepared to wait a while for disability coverage.
Need A Desjardins Disability Insurance Quote?
Many things can cause a disability, including an accident like a car crash or an illness like depression. Even if you’re healthy now, who knows what can happen down the road?
A long-term disability can be devastating for your financial future. That’s because once a disability passes the 90-day mark, the average length of a disability is 5.75 years. Not having an income for that long will alter your financial plans forever.
Make sure you protect your financial future from an extended period of disability. Contact us today at info@briansoinsurance.com or 604-928-1628 for a disability insurance quote. Whether it’s Desjardins Insurance or another insurance company, we will assess your financial situation to determine the right disability insurance product.
Get Your Disability Insurance Quote Now
While we make every effort to keep our site updated, please be aware that timely information on this page, such as quote estimates, or pertinent details about companies, may only be accurate as of its last edit day. Brian So Insurance and its representatives do not give legal or tax advice. Please consult your own legal or tax adviser. This post is a brief summary for indicative purposes only. It does not include all terms, conditions, limitations, exclusions, and other provisions of the policies described, some of which may be material to the policy selection. Please refer to the actual policy documents for complete details which can be provided upon request. In case of any discrepancy, the language in the actual policy documents will prevail. A.M. Best financial strength ratings displayed are not a warranty of a company’s financial strength and ability to meet its obligations to policyholders.
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