Desjardins Disability Insurance Review

If you become seriously ill or injured and can’t work, the last thing you want to think about is how you will pay your bills. That is where Desjardins Disability insurance comes in.

It works when you can’t, allowing you to focus on recovery knowing your monthly bills will be covered. 

Desjardins offers two disability insurance products for individuals: Solo Disability Income and Solo Essential Disability. In this post, we will take a detailed look at both so that you can make an informed choice about which one is right for you. 

Key Facts about Desjardins

The Desjardins Financial Group, founded in 1900, is one of the biggest cooperative financial groups in the country. It ranks as among the leading business and personal life insurance companies in Canada. Through its insurance arm, Desjardins Insurance, the group sells a suite of insurance products, including disability insurance, health insurance, and life insurance. 

• AM Best Rating: NA
• Headquarters: Levis, QC
• Contact No.: 1-877-828-7800

Why Apply for Desjardins Disability Insurance?

If you cannot work due to illness or injury, how will you pay your monthly bills? This is where long-term disability (LTD) insurance offered by Desjardins can prove helpful. It acts as an income replacement tool, allowing you to focus fully on what’s most important for you — your recovery.  

Desjardins Disability Insurance will: 

• Provide you with a monthly benefit and help you live comfortably even if you cannot work due to illness or injury
• Help you stay on top of your loan payments, like the mortgage installments
• Cover living expenses
• Prevent you from dipping into your life’s savings 

Desjardins offers two disability insurance products for individuals, each having its pros and cons. An independent insurance broker like Dundas Life can help pick the plan that is right for you here.

Find the best rates

Compare quotes from Canada's top life insurance companies in no time.

Compare Rates

Pros and Cons of Desjardins Disability Insurance

Pros

• One of Canada’s top insurance companies
• Critical illness benefit included 
• Higher upper age limit for coverage (64 years for illnesses and 69 years for accidents)
• Partial disability benefit rider 
• Option to extend coverage in case you do not retire at age 65
• Offers own occupation coverage

Cons

• You cannot purchase a policy online; coverage is only available through a Desjardins or independent insurance advisor like Dundas Life
• Catastrophic disability rider is not included
• Only disability insurance products for individuals
• The monthly benefit is capped at $10,000, which might not be adequate for people with higher incomes

Types of Desjardins Disability Insurance Plans

Desjardins offers the following two disability insurance plans. Which one is right for you depends on your occupation class, income, health, and features you desire. Shared ahead is a brief overview of each plan and their pros and cons so that you can make an informed decision. 

1. Solo Disability Income 

This plan offers monthly disability benefits of between $4,000 and $10,000 for a fixed period, which can be 2 years, 5 years, or until your 65^th birthday. This plan is geared toward self-employed people, small business owners, or others who do not have access to group disability insurance. Waiting period options offered are 30, 60, 90, 120, 365, or 730 days. 

You can customize the solo disability income plan to fit your needs. The following optional features are available:

• Future insurability rider: Lets you purchase additional coverage without submitting proof of good health
• Cost of living benefit: Adjusts the monthly disability benefit received by you each year during your disability to counteract inflation. 
• Return of premiums: Desjardins will refund 50% of the total premium paid by you, minus any benefit amount paid to you, if you cancel coverage on one of the specified surrender dates. 
• Residual disability rider: You will receive a monthly if you are not totally disabled but experience an income loss of 20% or more of your pre-disability income. 
• Partial disability rider: You will be eligible for 50% of the total disability benefits if you cannot perform some or all of the duties of your chosen occupation on a full-time basis. 

Pros

• During the first seven years, you can convert to another plan without submitting proof of good health if your needs change 
• Less stringent requirements for upgrading yourself to a higher occupational class (which will lead to lower premiums) than other insurers

Cons

• Your premium rate can go up at each policy renewal
• The monthly benefit is capped at $10,000, which might not be sufficient for high earners
• Involves comprehensive medical underwriting, so you may not qualify for coverage or may qualify only with exclusions in the event of underlying health issues 

2. Solo Essential Disability Income

You can buy monthly coverage of up to $6,000 and choose between accident coverage and illness protection or buy both. No medical exam is needed for accident coverage, making it a perfect option for those who do not qualify for traditional disability insurance because of health issues or some other reasons. Desjardins offers the following two riders with this plan:  

• Accidental death and dismemberment: Provides you with a lump sum in the event of accidental body injury, including loss of life or a limb, eyesight, or hearing.
• Accidental fracture: You will receive a benefit if you suffer a bone fracture. 

Pros

• People with high-risk jobs or underlying health conditions can qualify
• Gives you the option of buying only injury or illness coverage or both

Cons

• Includes many exclusions, such as depression, anxiety, or stress
• No option to upgrade your occupation class
• Some of the more common riders such as residual disability, partial disability, or return of premiums are missing

Applying for Desjardins Disability Insurance

You can’t buy disability insurance online with Desjardins, or get an online quote. If you are interested in the Solo Disability Income or Solo Essential Disability Income plan, you can apply for coverage by calling them at 1-844-838-7661.

Alternatively, you can speak with an independent advisor like Dundas Life, who can help you compare prices with other insurance companies.

How much does Desjardins Disability Insurance cost?

A Solo Essential Disability Income plan has lower premiums than a comparable Solo Disability Income policy. This is because it includes fewer benefits on top of disability protection than the latter.

If you do not need a monthly disability benefit of more than $6,000 and are looking for a cost-effective disability insurance plan, the Solo Essential Disability Income can be a good option. That being said, the monthly premium you will pay depends a lot on personal factors. These include: 

• Age
• Gender
• Health and lifestyle 
• Occupation

For example, a 30-year-old female will pay less than a 50-year-old female for the same plan, since the risk of developing a disability increases with age. Likewise, smokers have to cough up (pun intended) more for coverage than non-smokers. 

Apart from personal details, policy-specific details, such as the length of the waiting and benefit periods, the monthly benefit amount, and riders, also affect your premium rate. For instance, the longer the waiting period, the more affordable the coverage is, all other things being equal. 

Conclusion

Desjardins, one of Canada’s leading insurance providers, offers two disability insurance products. The Solo Disability Income plan provides a monthly benefit of up to $10,000 and can be a good option for high-income earners.

The Solo Essential Disability Income plan, in contrast, is a right fit for people who are finding it challenging to qualify for traditional disability insurance due to health issues or other reasons. 

Regardless of which plan you want to buy, you will have to work with a Desjardins advisor to complete the application process.

If you would like to receive a price quote before speaking to a Desjardins advisor or want to see how affordable Desjardins is compared to other providers, Dundas Life can help you. We can get you quotes from Desjardins (and other top providers in Canada) so that you can get the best deal. Reach out to us today.

Frequently Asked Questions

Can I apply for Desjardins Disability Insurance if I have a pre-existing medical condition?

Yes, you can. Desjardins Solo Essential Disability Income plan is aimed at people who do not qualify for traditional disability insurance plans because of pre-existing conditions or other reasons.

You can choose between accident or illness protection, or both. For accident coverage, you don’t need to take a medical exam. Your eligibility is determined based on your answers to three simple health questions. 

Can I increase my Desjardins Disability Insurance coverage in the future?

Desjardins Solo Disability Income plan gives you the option of adding the future insurability rider to your policy. If added, you can purchase additional coverage in the future without medical underwriting.