BMO Insurance has revamped its flagship whole life insurance product, introducing new benefits aimed at enhancing protection and value for policyholders while maintaining the same premium cost.
With no increase in premiums, BMO Insurance’s updated whole life plan now includes an estate protector option – a potential death benefit increase of up to 18% at age 85 – and a wealth accelerator option, which is a possible death benefit increase of up to 17%.
The new rates will apply to policy applications submitted from September 16 onward.
Rohit Thomas, president and chief executive of BMO Insurance, said: “Given the evolving needs of our clients amid the most significant intergenerational wealth transfer now underway globally and in Canada, we saw an opportunity to enhance the long-term values of BMO’s whole life product.
“This change offers tremendous value for advisors and their clients who are focused on leaving a legacy and making real financial progress.”
Introduced in 2017, the BMO Insurance Whole Life product was designed as a straightforward, flexible solution for Canadians seeking guaranteed permanent life insurance.
Whole life insurance provides permanent coverage with consistent premium payments over a specified period. It also helps mitigate tax impacts on estate values, making it a practical option for covering final expenses or leaving charitable donations.
Key aspects of the product include guaranteed premiums payable over 10, 20 years, or up to age 100; guaranteed cash values and reduced paid-up values; a performance bonus that automatically boosts the death benefit and cash value; and access to the BMO Insurance Health Advocate plan at no extra cost.
The offering also features a premium switch feature allowing policyholders to lower their payments without penalties; flexible payment and premium offset options; and the newly introduced estate protector and wealth accelerator options.
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