New features in BMO's whole life coverage promise flexible options and guaranteed performance bonuses
BMO Insurance has updated its flagship whole life insurance product to enhance protection and value for policyholders without increasing premiums.
Whole life insurance provides permanent coverage with fixed premiums payable over a set number of years. This type of plan can help offset taxes that may reduce estate values and serve as a financial resource for heirs to cover final expenses, taxes, or charitable donations.
Rohit Thomas, president, and CEO of BMO Insurance, stated, “Given the evolving needs of our clients amid the most significant intergenerational wealth transfer now underway globally and in Canada, we saw an opportunity to enhance the long-term values of BMO’s whole life product.”
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“This change offers tremendous value for advisors and their clients who are focused on leaving a legacy and making real financial progress,” he said.
BMO Insurance’s new whole life product includes the following options:
- Estate Protector: A potential increase in the death benefit of up to 18 percent by age 85, based on age and payment period.
- Wealth Accelerator: A possible increase in the death benefit of up to 17 percent by age 85, depending on age and payment period.
These updated rates will apply to all applications received on or after September 16.
BMO Insurance first introduced its whole life product in 2017, offering a non-participating permanent insurance plan designed for Canadians seeking simple and flexible permanent life insurance protection.
This product guarantees fixed premiums for 10 or 20 years, or up to age 100, alongside guaranteed cash values and reduced paid-up values. A performance bonus also automatically increases both the death benefit and the cash value.
Customers can select from two options, the Estate Protector and Wealth Accelerator, to meet their individual needs.
Other features include the BMO Insurance Health Advocate Plan, offered at no additional cost, as well as options to switch premiums, additional payment plans, and a premium offset feature.
