BMO Life Insurance In Canada: What You Need to Know Before Making a Decision

With over 150 life insurance companies in Canada, finding the right policy can be a challenge. This comprehensive guide to BMO Life Insurance will provide an in-depth look at their offerings to help you determine if they are the best fit for your needs.

What is BMO Life Insurance?

BMO Life Assurance Company is the insurance division of the Bank of Montreal (BMO) Financial Group. Founded in 1817, BMO is one of Canada’s largest banks and oldest companies.

BMO Life Insurance provides a suite of term, permanent, and specialty life insurance policies to Canadian residents.

Key facts:

• Founded in 1817, Canada’s oldest bank
• Headquarters in Toronto, Ontario
• Acquired AIG’s Canadian life insurance business in 2009
• $11.2 billion in assets 2024 (Source)
• $2 billion in annual premiums
• AM Best rating: A (Excellent)

With over 200 years of experience, BMO offers stability and a long track record in the Canadian financial services market.

(Source: https://www.bmo.com/insurance/about-us#about-bmo-insurance-section)

What Types of Life Insurance Does BMO Offer?

BMO Insurance offers a wide array of life insurance products, including term life, permanent life, and specialty coverage options.

Term Life Insurance

BMO Term Life Insurance provides affordable temporary protection that is well-suited for covering temporary needs like mortgages, income replacement, and family expenses. Notable features of BMO term policies include:

• Available term lengths of 10, 15, 20, 25, and 30 years
• Face amounts ranging from $100,000 to $10 million
• Eligibility for those aged 18-75, with coverage expiring at age 85
• Premiums are guaranteed level for the initial term period
• Policies are convertible to permanent plans until the age 70
• 10, 15, and 20-year terms are renewable up to age 85 without a medical exam if eligible
• Offers optional riders for critical illness, accidental death, disability waiver of premium
• Includes a unique Exchange Program on 10-year terms allowing conversion to a new 10-year term between years 1-5

While term life provides the most affordable rates initially, premiums increase substantially upon renewal. The conversion and exchange privileges of BMO Term Life add flexibility to transition to a longer-term solution.

Permanent Life Insurance

For lifelong guaranteed protection and wealth-building potential, BMO provides a variety of permanent life insurance solutions:

BMO Term 100

• Permanent level term coverage with guaranteed premiums payable to age 100
• Available for ages 18-80 with face amounts from $50,000 to $5 million
• Provides lifetime protection with the flexibility of term insurance
• Offers optional riders, including accidental death and disability waiver
• An affordable option for estate planning and final expenses

BMO Whole Life Insurance

BMO Whole Life Insurance is a participating permanent policy that provides guaranteed lifetime coverage and cash value accumulation. Premiums are level and payable for a defined period, after which the policy is considered paid-up. With whole life, a portion of premiums is set aside into a cash reserve that grows tax-deferred over time.

BMO offers two whole life plans:

Estate Protector

• Designed to maximize the tax-free death benefit to beneficiaries
• Level guaranteed premiums payable for 10 or 20 years or until age 100
• Ideal for leaving a larger legacy or covering final expenses and taxes

Wealth Accelerator

• Focuses on building tax-advantaged cash value within the policy
• Level guaranteed premiums payable for 10 or 20 years or until age 100
• Well-suited for supplementing retirement income or other financial goals

Both plans include:

• Guaranteed cash surrender values that can be accessed through policy loans or withdrawals
• An automatic Performance Bonus that enhances both the death benefit and cash value growth is guaranteed never to be negative
• Flexible options like making additional payments to boost growth, switching premium schedules, or using accumulated values to cover premiums

BMO Universal Life Insurance

BMO Universal Life Insurance combines permanent life insurance protection with a tax-deferred investment component. Within certain limits, policy owners can adjust the timing and amount of premiums and select from a diverse menu of investment options.

The three BMO Universal Life plans are:

Life Dimensions

• Offers bonuses to accelerate investment growth
• Wide selection of investment accounts, including guaranteed interest, indexed accounts, and managed portfolios
• Includes a Shuttle Account to automatically manage payments

Life Dimensions (Low Fees)

• A lower-cost option with reduced bonuses and fees
• Access to the same investment accounts as Life Dimensions
• Includes an InvestorMaximizer to optimize tax-advantaged investing

Wealth Dimensions

• Designed for those making a larger upfront investment of $25,000+
• The broadest selection of investment accounts
• Offers the highest Growth Enhancement Benefit to boost account values

All universal life plans include:

• Flexible premiums, allowing policy owners to adjust payments subject to certain minimums
• Tax-advantaged investment growth based on the selected accounts within legislative limits
• Ability to access accumulated cash values through withdrawals or policy loans
• A comprehensive lineup of optional insurance riders for term coverage, critical illness protection, disability waiver, business benefits, and children’s coverage

BMO Guaranteed Life Plus

• Permanent life insurance with guaranteed acceptance for ages 45-75 and no underwriting
• $50,000 of basic coverage after a 2-year waiting period with a $250,000 accidental death benefit
• Lifetime coverage provided premiums are paid to age 95

Specialty Products

BMO Insurance also offers additional products for targeted needs:

Critical Illness Insurance

• Provides a lump-sum benefit if diagnosed with a covered critical illness
• Two plans: Living Benefit (covers 25 illnesses) and Life Recovery Plus (simplified issue)

Travel Insurance

• Covers trip cancellation, interruption, emergency medical, baggage loss and more
• Plans available for single trips or annual multi-trip coverage

Overall, BMO Life Insurance offers a comprehensive range of flexible term and permanent life insurance options, along with specialty products, to meet the diverse needs of Canadian consumers. Its innovative product features, riders, and investment choices make BMO a compelling choice in the marketplace.

How To Buy BMO Life Insurance?

Purchasing life insurance from BMO involves a combination of online research and personalized guidance from a licensed advisor. Here’s an overview of the process:

Get a Quote

To get a BMO life insurance quote, you can either fill out an online form or speak with a licensed advisor over the phone. Online quotes are available for term life and term 100 policies. You’ll need to provide information such as your birthdate, gender, pre-existing health conditions, smoking and drug use, coverage amount, and participation in high-risk activities. Your final premium rate will be based on factors like age, gender, and health status.

For other permanent life insurance options, you’ll need to contact an advisor for a quote.

It’s important to remember that life insurance is highly individual, and you won’t know exactly what policies you’re eligible for or what rates you’ll pay until you go through the quoting process. Comparing quotes from multiple providers can help you find the best coverage for your needs and budget.

Speak With a Licensed Advisor

Once you have a quote, the next step is to discuss your options with a licensed advisor over the phone. They will review your needs, provide more detailed information on policy features and pricing, and help you select the most suitable coverage.

Working with an experienced advisor is crucial when it comes to something as important as life insurance. They can assess your unique circumstances, explain complex insurance concepts, and ensure you get the right protection for your situation.

Complete the Application

If you decide to proceed, your advisor will guide you through the application process, which involves providing personal and health-related information. Depending on your age, coverage amount, and policy type, a medical exam may be required.

Underwriting Review

Your application will be reviewed by BMO’s underwriting department to assess your risk profile. Additional information may be requested during this process.

Policy Issuance and Delivery

If approved, your policy documents will be sent to you for review and signature. Once you sign and return the documents and submit your first premium payment, your coverage will be active.

While you can get quotes online for certain policies, you cannot complete the entire application or purchase process online. A licensed advisor must be involved to ensure you get the right coverage for your needs.

For more information and personalized advice on BMO life insurance options, consider requesting a quote or contacting a licensed advisor. You can also visit resources like LifeBuzz.ca for general tips, company reviews, and articles on various life insurance topics to help guide your decision-making process.

How Much Does BMO Life Insurance Cost?

The cost of life insurance depends on several factors like age, gender, health, lifestyle, and the amount of coverage desired.

Here are sample BMO term life insurance rates for a 20-year $500,000 policy:

Age	Male	Female
30	$32.85	$22.95
40	$49.05	$36.90
50	$131.40	$91.80
60	$427.50	$305.10

These monthly costs are for a healthy non-smoker. Those with medical conditions or other risk factors may pay higher premiums.

BMO offers competitive pricing on term life insurance, especially for younger ages and shorter 10 or 15-year policy terms.

Permanent life insurance, which offers lifelong coverage, is initially more expensive than term insurance. Whole life insurance runs around $200 per month for a 40-year-old male, while universal life averages $100-$150 monthly.

Always compare quotes from multiple providers to find the best rates for your situation. Use our free life insurance calculator to start.

What Are The Pros and Cons of BMO Life Insurance?

Here are some of the key advantages and disadvantages of BMO life insurance products:

Pros

• Competitive rates on term life insurance policies
• Multiple term lengths available from 10 to 30 years
• Unique Compassionate Benefit Program provides an early payout option
• Ability to convert term policies to permanent insurance
• Get quotes conveniently online

Cons

• No online life insurance purchases or account management
• Lengthy paper application and documentation process
• Term 25 and 30-year policies cannot be renewed
• Must speak with an agent to get permanent policy prices

Overall, BMO Life Insurance offers flexible options at reasonable prices. The lack of digital tools is one drawback to weigh.

Is BMO Life Insurance Right for You?

There are many reasons to consider BMO Life Insurance:

• Long company history – Over 200 years in business provide financial stability
• Range of term lengths – 10 to 30-year terms suit various temporary needs
• Affordable pricing – Competitive rates, especially for younger applicants
• Permanent conversion options – The ability to convert term policies provides future flexibility
• Compassionate Benefit Program – Unique early payout option for terminally ill

However, limited online support and renewability are negatives for some. Ultimately, comparing quotes from a few top insurers ensures you get the best policy.

BMO Life Insurance makes sense for many who are seeking an affordable term or permanent policy from a reputable national carrier.

How Can I Find the Best BMO Life Insurance Rates?

Purchasing the correct life insurance policy means weighing several key considerations:

Know How Much Coverage You Need

Determining the right amount of coverage is critical when choosing a BMO Life Insurance policy. Consider factors like:

• Income replacement needs of dependents
• Outstanding debts like mortgages, loans, and credit cards
• Final expenses like funeral costs
• Education funding needs
• Estate planning and inheritance goals

Also, it accounts for inflation over the length of the policy. An appropriate amount ensures your family is fully protected while avoiding overpaying for excessive coverage.

Compare Term Lengths

For temporary insurance needs, choose a term length matching the duration required:

• 10 or 15 years – Paying off a mortgage or debt
• 20 years – Young family protection needs
• 25 or 30 years – Lifetime income replacement

Shorter terms of 10 or 15 years have lower initial premiums but higher renewal rates later on.

Consider Permanent Life Insurance

Those needing lifelong protection may opt for a permanent life insurance policy. This guarantees coverage that never expires, regardless of future health changes.

While more expensive at first than term insurance, permanent policies provide lasting security. They also build cash value that can be used for various needs.

Review Policy Riders

Riders provide optional add-ons to enhance certain aspects of a life insurance policy. Common options include:

• Waiver of premium for disability – Waives premium payments if disabled
• Accidental death rider – Extra payout if death is accidental
• Critical illness rider – Lump sum payout if diagnosed with critical illness

Consider riders that fit your unique insurance needs and risk factors.

Compare Quotes Extensively

Rather than just looking at BMO’s rates, be sure to compare quotes across at least 5-10 top life insurance companies (Canada Life, Manulife, Sun Life, Industrial Alliance, and Desjardins).

This comparison shopping ensures you find the most affordable option with ideal features for your situation.

How to Reduce Your BMO Life Insurance Premiums

Here are some tips to potentially lower your BMO life insurance premiums:

• Improve health and lifestyle – Quit smoking, lower cholesterol, and maintain healthy blood pressure and weight. Insurers charge higher premiums for health risks.
• Choose a longer term – Term life insurance rates start lower for longer terms like 20 or 30 years compared to 10 years.
• Pay annually – Paying premiums annually rather than monthly can reduce costs.
• Bundle with other policies – Purchasing auto, home, and life from the same insurer may provide bundling discounts.
• Increase deductibles – Higher deductibles on term life riders like critical illness can lower overall premiums.
• Review options frequently – Shop quotes from new insurers every few years as competitive pricing changes.

Finding ways to maximize savings is key to securing adequate life insurance protection at the lowest cost.

Key Takeaway:

BMO Life Insurance is a reputable provider with a long history and a wide range of term and permanent life insurance options for Canadians. While they offer competitive rates and some unique features, it’s important to work with a licensed advisor, compare quotes from multiple insurers, and consider your specific coverage needs and budget when deciding if BMO is the right choice for you. Evaluating policy options carefully and taking steps to maintain good health can help you secure the best possible life insurance protection at an affordable price.

FAQs about BMO Life Insurance