BMO Life Insurance Review
Learn more about BMO life insurance in Canada. Talk to one of our experienced advisors, today!
8 Minute read
Originally published: January 25, 2022
Updated: April 22, 2024
BMO Life Insurance Review.
Learn more about BMO life insurance in Canada. Talk to one of our experienced advisors, today!
8 Minute read
Originally published: January 25, 2022
Updated: April 22, 2024
BMO Insurance is a member of BMO Financial Group, one of Canada’s largest and oldest banks. It’s widely known and has some of the most competitive pricing in the insurance industry which gives it an A rating from AM Best company. BMO has a single term life insurance plan that has term periods of 10, 15, 20, 25 or 30 years. BMO Insurance offers multiple permanent life insurance plans providing a range of coverage benefits. In general, they don’t have many term life benefits, no-medical or guaranteed life insurance options, as well as lack of options for some riders that are essential for many clients, therefore leading us to give BMO Insurance a 2/5 stars from Protect Your Wealth.
In this article:
Company Overview
BMO Insurance is a member of the Bank of Montreal (BMO) Financial Group which has a long history in the financial sector of Canada that goes back to 1817 and is currently the eighth largest bank in North America by assets. Based in Montreal, this Canadian multinational bank, BMO, operates more than 900 branches. Its banking division and financial group provide services to over 7 million customers and employ over 40,000 staff members. BMO Insurance provides a range of life insurance products, including term life, various forms of permanent life insurance, and critical illness coverage.
BMO Insurance Life Insurance Pros
Offers flexibility to convert your term life insurance policy into a permanent life insurance, along with extending term policy
Allows for renewing your term life insurance policy without medical review
BMO Insurance Life Insurance Cons
Customers are limited to only one term life insurance option
Prices are not as affordable as other Canadian insurance companies
BMO Insurance Life Insurance Products
BMO Insurance offers a couple different kinds of life insurance plans. As far as their term life insurance plan goes, they only have one which is BMO Insurance’s Term Life Insurance. BMO luckily has a number of permanent life insurance plans, including: Universal Life, Whole Life, and Term 100. There is also an optional additional insurance product called Critical Illness Insurance, that includes living benefits. Below you will find more information on the various life insurance packages BMO has.
BMO Insurance Term Life Insurance
BMO Insurance offers only one Term Life Insurance option that can have a length of a 10, 15, 20, 25, or 30 year term.
- Key Highlights
- Coverage amount of $100,000 to $5 million
- May require assessment of health or and Attending Physician’s Statement (APS)
- Guaranteed premiums for the length of the term
- Available for those ages 18 to 75 years old
- BMO term life insurance offers 10, 15, and 20, 25, and 30 year term options
- Optional Benefits
- Renew the 10, 15, and 20 year term coverage for a longer term once the term expires (not valid for the 25 and 30 year term)
- Exchange your 10 or 15 year term into a 15, 20, 25 or 30 year term, or convert your life insurance policy to a permanent life insurance policy within 5 years of your policy.
- Critical Illness Insurance add-on
Curious about what to look out for when considering the right life insurance policy? Read about How to Get the Best Life Insurance Policy and Rates in Canada.
BMO Insurance Term Life Insurance Rates
BMO’s permanent life insurance rates tend to cost about 10-15x more than term. The table below shows the monthly premium for a policy for a 45-year-old, non-smoking person with $1M coverage.
The table below displays premiums for a non-smoking 35 year-old female looking for a 20-term life insurance from some of the top life insurance companies in Canada.
BMO Insurance Permanent Life Insurance
BMO Insurance has 5 permanent life insurance products: BMO’s Universal Life, BMO Insurance Whole Life, BMO Term 100, BMO EasyOne Life, and BMO Guaranteed Life Plus.
BMO Universal Life
BMO’s Universal Life Insurance is their permanent life insurance combined with a tax-deferred investment account.
- Key Highlights
- Coverage amount of $50,000 to 20 million
- Available for those ages 0 to 80 years old
- Flexible premium payments
- Access to cash in your tax-deferred investment account
- May require assessment of health or an Attending Physician’s Statement (APS)
- 4 investment options: Guaranteed-interest account, Equity-linked investment account, Guaranteed Market Indexed Account, Enhanced Market Indexed Account
- 3 plans: Life Dimensions, Life Dimensions (Low Fees), and Wealth Dimensions
- Optional Benefits
- Term Insurance Rider 10, 15, 20, 25 or 30 years term
- Accidental Death Rider
- Waiver of Premium
- Critical Illness Rider
- Children’s Term Insurance Rider
- BMO Insurance Health Advocate™ Plan
- Business Guaranteed Insurability Option is an attractive option for business owners
BMO Insurance Whole Life
BMO Insurance Whole Life is an option which provides you with ways to maximize the amount of your estate, and secure insurance protection for life.
- Key Highlights
- Coverage amount of $50,000 to $20 million
- Available for those ages 0 to 80 years old
- May require assessment of health or an Attending Physician’s Statement
- Fixed level premiums that are payable for 10 years, 20 years or until you’re 100 years old
- Two plan options: Estate Protector and Wealth Accelerator
- Bonuses to increase death benefit
- Minimizes the impact of taxable assets
- Optional Benefits
- Options for tax deferred growth through additional payments
- Premium switch options allow for adjusting the premium rate to fit your financial situation
- BMO Insurance Health Advocate™ Plan
BMO Term 100
The BMO Term 100 life insurance offers a guaranteed fixed level premium, and it is a whole life insurance policy.
- Key Highlights
- Coverage amount of $50,000 to $5 million
- Available for those ages 18 to 80 years old
- May require assessment of health or an Attending Physician’s Statement
- Fixed premiums that are no longer required after age 100
- Optional Benefits
- BMO Insurance Health Advocate™ Plan
- Critical Illness Insurance rider
Other BMO Life Insurance Products
BMO offers 1 critical illness insurance option which is ideal if you are looking for extra coverage and peace-of-mind security in the case that you are diagnosed with any of the 25 covered life-threatening medical conditions, you will receive a lump-sum benefit. These products should ideally be packaged with other life insurance products to create a complete benefits package
This critical illness insurance that has a 10 or 20 year term coverage or provides an option to upgrade to a permanent plan to have coverage until the age of 75 or 100.
- Key Highlights
- Allows conversion from 10 to 20 year term to the Living Benefit 75 to 100 policy
- Covers 25 life-threatening critical illnesses, including: cancer, stroke and heart attack, blindness, deafness, dementia, kidney failure, MS, Parkinson’s disease and loss of limbs.
- Premiums don’t increase for those with the 75 and 100 plan
- Optional Benefits
- Option of Return of Premium on Death benefit (ROPD)
- Option of Return of Premium on Surrender or Expiry benefits (ROPS) – applies to Living Benefit 75 and 100 plan only
- Premiums can be paid over 15 years – applies to Living Benefit 100 plan only
BMO Income Annuities
As people lead healthier lifestyles and benefit from medical advances, the demand for reliable income sources post-retirement is increasing. In this scenario, BMO Insurance offers income annuities as a secure source of income for retirement. These are particularly beneficial for individuals who want a guaranteed, hassle-free income in their golden years.
What are Income Annuities?
Income annuities involve the annuitant making a lump sum premium payment to the insurance company. Subsequently, the company commits to paying a predetermined amount periodically, for either a specified duration or for the annuitant’s lifetime, avoiding the volatility of market investments.
This solution is most suitable for Canadians desiring a source of guaranteed lifetime income, generally for retirement. It’s an excellent way to supplement other income sources like Canada Pension Plan (CPP), Old Age Security (OAS), or a defined benefit pension, ensuring there is a steady ‘income floor’ to cover essential living expenses.
Annuities provided by BMO Insurance:
- Single Life Annuities: Designed to provide income as long as the annuitant lives. If a guaranteed period is chosen, income payments are assured for the selected number of years, during this period, a beneficiary would receive a death benefit. This annuity can be purchased between $10,000 and $500,000 (non-registered) / $1,000,000 (registered).
- Joint Life Annuities: Ideal for couples, ensuring income availability for both partners.
- Term Certain Annuities: These annuities guarantee payments for a predefined term.
- Registered and Non-Registered Annuities: Catering to both registered and non-registered financial plans.
Advantages of Income Annuities:
- Guaranteed Income: The annuitant can enjoy a stable income, without concerns over market fluctuations or investment management.
- Supplemental Income: Annuities act as a supplement to other guaranteed lifetime incomes, perfect for those interested in securing their retirement years.
- Assurance: Especially beneficial for those who want the assurance of covering basic living expenses through guaranteed income.
BMO Insurance Customer Reviews
Many BMO Insurance clients are satisfied with their experience with the company:
The flexibility for term life insurance options is a beneficial feature for many clients
Easy access to customer service
On the other end, some customers have found that:
- Cancellation and claim processing times are delayed for long periods of time
Limited information available online makes it difficult for customers to make an informed decision
Frequently Asked Questions (FAQs) about BMO Insurance
BMO Insurance Life insurance only gets a two star rating from us at Protect Your Wealth. We feel like they lack term life insurance policies and guaranteed or no medical life insurance policies, which are the most popular kinds of life insurance policies. There is also a lack of riders too as they only have a critical illness insurance rider. It is always good to shop around, and compare prices, companies, and benefits. There may be other amazing life insurance companies that might fit your needs better, contact us to find the right life insurance policy for your situation! Try reading our blog about the Best Life Insurance Companies in Canada Guide.
BMO Insurance Life insurance offers term life insurance which is offered in a 10, 15, 20, 25, or 30 year term. They have 3 permanent life insurance policies, including BMOS’s: Universal Life, Whole Life, and Term 100. They also have one critical illness plan for additional coverage if interested.
Some good reviews for BMO Insurance from their clients include:
- The flexibility for term life insurance options is a beneficial feature for many clients
- Easy access to customer service
- Cancellation and claim processing times are delayed for long periods of time
- Limited information available online makes it difficult for customers to make an informed decision
The duration of a term life insurance policy is limited. Typically, a policy lasts between 5 and 30 years and is renewed at a higher cost. Policyholders who outlive their coverage have the choice of renewing their policy, forgoing life insurance and cancelling their policy, acquiring new coverage at a lesser rate, or converting their coverage to a whole life insurance policy.
Your life insurance coverage cannot be transferred from one provider to another. A life insurance policy might be difficult to transfer ownership of and may have tax repercussions. In the majority of Canadian provinces, it is illegal to sell or transfer a life insurance policy to a third party. Additionally, it is feasible to change the beneficiary of your life insurance policy, but if the original beneficiary was irreversible, you will need their consent.
BMO Life insurance price range depending on what package you want and what your situation is. To find out more about the pricing of your life insurance, please contact us and we will take a look at the price of life insurance for you from several life insurance companies just contact us here or get a quick quote right now!
Get In Touch With Us Today
If you’re not sure of what’s the best insurance product or company for you, working with a life insurance specialist can help you find the best solution to fit your particular situation. At Protect Your Wealth, we’ve been providing expert advice for all types of life insurance, including for no medical, term life, or permanent life insurance, since 2007. As your Life Insurance broker and financial planner, we work with you to create a personalized plan for your family or business that covers and meets your needs.
Contact Protect Your Wealth or call us at 1-877-654-6119 to talk to an advisor today! We’re proudly based out of Hamilton, and service clients anywhere in Ontario, British Columbia, Alberta, and Manitoba including areas such as Kitchener, Edmonton, Richmond and Winnipeg.
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