BMO Life Insurance Review

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 Pros & Cons 
• BMO Life Insurance Products
• BMO Term Life Insurance 
• BMO Term Life Insurance Rates
• BMO Permanent Life Insurance 
• Other BMO Life Insurance Products 
• BMO Life Annuities
• BMO Insurance Customer Reviews

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

BMO Insurance Life Insurance Cons

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. 

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:

On the other end, some customers have found that:

Frequently Asked Questions (FAQs) about BMO Insurance

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.