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

The Complete Guide to BMO Life Insurance in Canada
The Complete Guide to BMO Life Insurance in Canada

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
  • $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.

What Types of Life Insurance Does BMO Offer?

What Types of Life Insurance Does BMO Offer?
What Types of Life Insurance Does BMO Offer?

BMO Life Insurance provides a suite of term, permanent, and specialty life insurance policies to meet different needs.

BMO Term Life Insurance

Term Life Insurance of BMO is an affordable temporary coverage option ideal for mortgages, income replacement, and family protection planning.

It offers:

  • Available terms: 10, 15, 20, 25, and 30 years
  • Coverage amounts: $100k to $5 million
  • Issue ages: 18-75 years old
  • Convertible to permanent insurance until age 70
  • Renewable options on 10, 15 and 20-year terms
  • Riders like critical illness insurance and disability waiver

As the least expensive form of life insurance, term policies provide pure protection for a set period of time. Rates start low but increase as you age. BMO’s renewable and convertible options add flexibility.

BMO Permanent Life Insurance

For lifelong protection, BMO permanent life insurance options include:

Whole Life Insurance

Whole life insurance of BMO provides guaranteed death benefits and premiums. It builds cash value that can be borrowed against or withdrawn.

There are two whole life insurance plans:

  • Estate Protector: Focuses on maximizing the death benefit payout
  • Wealth Accelerator: Prioritizes building up cash value

More : whole life insurance

Universal Life Insurance

A universal life policy offers permanent coverage with flexible premiums and death benefits. It also features:

  • Wide range of investment options for cash value growth
  • Tax-deferred cash value growth
  • Various riders for added benefits
  • Access to cash value through withdrawals or loans

BMO has multiple universal life insurance options to meet different needs.

More : Universal life insurance

EasyOne Life

This no medical exam whole life insurance plan is available for ages 50-80 with $5k to $50k of coverage.

Term 100

BMO Term 100 provides permanent life insurance with level premiums payable until age 100. Available for Canadians 18-80 with up to $5 million in coverage.

Guaranteed Life Plus

This guaranteed acceptance permanent plan is designed for ages 40-75. It provides up to $50k of coverage plus a $250k accidental death benefit without medical underwriting.

Additional Protection Products

Beyond basic life insurance, BMO also offers:

  • Critical illness insurance – Pays out a lump sum upon diagnosis of a covered condition
  • Mortgage life insurance – Pays off the remaining mortgage balance after the death
  • Travel insurance – Covers emergency medical, trip cancellation, lost baggage

This selection of insurance products provides comprehensive protection for nearly any need.

How To Buy BMO Life Insurance?

While BMO offers online quotes, applications must be completed over the phone through a licensed advisor. Below is an overview of the purchase process:

  1. Get an instant quote online by entering some basic personal details.
  2. Speak with a BMO insurance advisor over the phone to discuss options.
  3. Complete any required medical exams based on age and policy type.
  4. Application forms are submitted and reviewed by underwriting.
  5. If approved, policy documents are issued, and coverage begins.

To get in touch with BMO Insurance directly, call 1-800-387-4483 or request a callback online.

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:

AgeMaleFemale
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?

The Pros and Cons of BMO Life Insurance
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. Use our free online quotes tool below to see how their rates stack up.

Get BMO Life Insurance Quotes Online

Comparing quotes from leading insurers is the best way to find affordable life insurance tailored to your needs and budget.

With our fast online quotes tool, you can view policies from top providers matching your specific situation in under 2 minutes.

Discussing your needs with an advisor ensures you consider all important factors when choosing the right life insurance. Feel free to contact us anytime!

How Can I Find the Best BMO Life Insurance Rates?

How To Find the Best BMO Life Insurance Rates
How To 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.

This comparison shopping ensures you find the most affordable option with ideal features for your situation. Use our free online quotes tool above to compare leading insurers and rates easily.

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.

Ensuring Your Family’s Financial Security with BMO Life Insurance

The right life insurance coverage provides important protection for your loved ones. BMO Life Insurance offers flexible options at competitive rates that are worth considering.

Ultimately, working with a licensed advisor at LifeBuzz ensures you find the ideal policy to meet your family’s financial needs now and in the future. Contact us today to discuss your specific situation!

FAQs about BMO Life Insurance

How long has BMO been selling life insurance?

BMO has offered some life insurance products since its founding in 1817. However, it expanded its portfolio significantly in 2009 when it acquired AIG's Canadian life insurance business.

Where is BMO life insurance available?

BMO life insurance products are available across all Canadian provinces and territories. The insurer has a nationwide presence.

Why choose BMO for life insurance?

Reasons to consider BMO life insurance include competitive pricing, a wide range of policy options, financial stability from a long-operating company, and unique features like the Compassionate Benefit Program.

What is the claims process for BMO life insurance?

To start a claim, contact BMO Insurance at 1-855-587-8995 or 1-866-355-8855. They will send the required forms to complete and return. The claim will then be reviewed and approved if valid and documented properly.

How do I contact BMO life insurance?

You can contact BMO Insurance by calling 1-800-387-4483 or requesting a callback on their website. Advisors are available to assist with questions and quote requests.

How do I cancel my BMO life insurance policy?

To cancel, request Form 747E from BMO to terminate or surrender your policy. Make sure to include your signature and policy number. Your advisor can help submit the paperwork.

Can I manage my BMO life insurance online?

No, BMO does not currently offer online account access or servicing for its life insurance customers. All policies must be managed through a BMO advisor.

How much life insurance do I need from BMO?

Use a life insurance calculator to determine the right coverage amount based on factors like debts, income, family size, final expenses, and education funding needs. BMO offers $100k to $5 million policies.

What is a participating whole life insurance policy from BMO?

BMO does not currently offer a participating whole life insurance policy. This type of permanent policy pays dividends to policyholders based on the insurer's financial performance.

Are BMO life insurance rates guaranteed?

For term life insurance, rates are guaranteed for the initial term length selected. Permanent policy rates are also guaranteed provided payments are made on time.

When should I buy life insurance from BMO?

Ideal times to purchase life insurance include when you have a new dependent, purchase a house, have a change in income, get married, have a child, or retire. BMO offers both term and permanent coverage.

What medical tests are required for BMO life insurance?

Medical requirements depend on age and the policy amount applied for. Tests can include blood and urine samples, physical exam, and doctor's report. Higher face amounts require more screening.

Can I get life insurance from BMO with pre-existing conditions?

Yes, BMO will consider pre-existing health conditions through their underwriting process. You may pay higher premiums depending on the severity. Certain serious conditions may lead to a declination.

How long does it take to get approved for BMO life insurance?

Approval times range from 1 week to 2 months depending on medical history and how quickly required tests are completed. Quicker decisions are made for smaller policies not needing extensive review.

What benefits do BMO life insurance policies have?

Benefits include optional riders for critical illness, disability, and accidental death. Term policies are convertible and some are renewable. Permanent policies build cash value. The Compassionate Benefit Program also provides early payouts for terminally ill policyholders.

Does BMO sell mortgage life insurance?

Yes, BMO offers mortgage life insurance designed to pay off all or part of the outstanding mortgage balance in the event of death. This can be an alternative if you cannot qualify for regular life insurance.

Is BMO life insurance renewable?

10, 15, and 20-year BMO term life insurance policies are renewable to the age of 70 without providing evidence of insurability. Term 25 and 30-year policies are not renewable.

Is BMO life insurance portable?

Yes, BMO term and permanent life insurance portability is offered. This allows you to take your policy with you if you change employers or retire rather than terminating coverage.

What is the difference between BMO term and permanent life insurance?

Term life provides temporary coverage while permanent life offers lifelong protection. Permanent also builds cash value, offers guaranteed rates, and has premiums that don't increase annually like term. It provides lasting benefits but costs more upfront.

Article Sources:

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  1. BMO Life Insurance Review – Updated 2024 – https://www.policyadvisor.com/
  2. Is BMO Life Insurance Good? 2024 Review – https://hellosafe.ca/
  3. BMO Life Insurance Review 2024 – https://www.dundaslife.com/
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Written by Ben Nguyen

Ben Nguyen is an award-winning insurance expert and industry veteran with over 20 years of experience. He is the chairman and director of IDC Insurance Direct Canada Inc., one of Canada's leading online insurance brokerages.

Ben is renowned for his extensive knowledge of life, health, disability, and travel insurance products. He is the prolific author of over 1,000 educational articles published on LifeBuzz, BestInsuranceOnline, and InsuranceDirectCanada. His articles provide Canadians with advice on making smart insurance decisions.

With a Bachelor's degree in Actuarial Science and a Fellow of the Canadian Institute of Actuaries (FCIA) designation, Ben is frequently interviewed by media as an insurance industry spokesperson.

He has received numerous honors including the Insurance Council of Canada’s Pivotal Leadership Award, the Canadian Insurance Hall of Fame induction, and the President’s Medal from the Canadian Institute of Actuaries.

Ben continues to shape the vision and strategy of IDC Insurance Direct as chairman. He is dedicated to advancing the insurance industry through his insightful leadership.

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