BMO Insurance launches whole life plan

BMO Insurance has launched the BMO Insurance Whole Life Plan, which is a non-participating plan that offers an increasing death benefit with guaranteed cash values and guaranteed level premiums payable for 10 or 20 years or to age 100, after which time the policy becomes fully paid.

Plan features

Here are the plan’s key features.

• Performance bonus and paid-up additions

A performance bonus is calculated annually and used automatically to add paid-up insurance coverage, which increases the total death benefit and cash value available on the policy.

The performance bonus is calculated by multiplying the performance bonus rate by the guaranteed cash value of the basic coverage.

BMO Insurance guarantees the bonus rate will be at least 5.5% until April 30, 2020. The bonus is also guaranteed to be positive for as long as clients keep their policies.

• Premium switch option

Clients may change their premium payments to a lower-cost schedule to help them manage annual costs without affecting their basic coverage.

• Reduced paid-up insurance option

If clients want to stop paying premiums completely, they can elect to reduce their basic coverage to a schedule of guaranteed amounts.

Also read:

Leveraging life insurance policies

How big data can make insurance better

Manulife will underwrite more $1-million policies without testing required

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.