New updates to BMO's whole life product increase death benefits while promising to keep premiums unchanged
BMO Insurance has updated its flagship whole life insurance product to provide enhanced protection and value for policyholders without changing the premium.
Whole life insurance offers permanent protection with fixed premiums payable over a set period, while mitigating the tax impact on estate values. It can also be used to cover final expenses, offset taxes, or leave financial gifts to charity.
According to Rohit Thomas, president and CEO of BMO Insurance, the company recognized an opportunity to enhance the long-term value of its whole life insurance product, given the evolving needs of clients amidst significant intergenerational wealth transfers in Canada and globally.
This update aims to offer greater value to advisors and clients focused on leaving a legacy and ensuring financial progress.
With the same premium, BMO Insurance Whole Life now includes:
- Estate Protector option: Death benefit increases by up to 18 percent (depending on age and pay period) at age 85.
- Wealth Accelerator option: Death benefit increases by up to 17 percent (depending on age and pay period) at age 85.
New rates apply to applications received on or after September 16. First launched in 2017, the BMO Insurance Whole Life product offers simple, flexible, and guaranteed permanent insurance. It is designed for Canadians seeking permanent life insurance that adapts to changing needs.
Key features of the product include:
- Guaranteed premiums payable for 10 years, 20 years, or to age 100
- Guaranteed cash values and reduced paid-up values
- A performance bonus that increases both the death benefit and cash value
- Two plan options: Estate Protector and Wealth Accelerator
- The BMO Insurance Health Advocate™ Plan at no additional cost
- A premium switch option allowing clients to decrease payments without penalty
- Additional payment and premium offset options
